Question

In this project, you are presented with a list of facts that you will use to draft a contract. In doing so, ensure that all elements of a contract have been met, and that you have drafted a valid contract. You should use the information you have learned in Modules 5, 6, and 7.

Listed below are facts you will use to draft a valid contract.

List of Facts

Your daughter, Susan, would like to take guitar lessons. Gary's Guitars at 486 Music Lane, in Rockville, MI 79236, is having an introductory special on lessons. Since you live near Rockville (336 Manderly Rd., Bluestown, MI 58369), you think this is a great opportunity for your daughter. Gary offers multiple options for lessons which are listed below.

Gary provides the guitar for a term of 6 months for a rental fee of $180. If you choose to buy a guitar at a later date from Gary, you may deduct the rental fees you have paid from the price of the new guitar.

You may provide your own guitar, in which case you do not need to rent one.

Weekly private lessons at 1/2 an hour a lesson are $35 a week, or for a 6 month commitment you can buy a package for $672.

Weekly private lessons for 1 hour are $60 a week, or for a 6 month commitment you can buy a package for $1152.

Group lessons are available for 45 minutes a week, at $25 a lesson.

If additional family members take lessons from Gary's Guitars, you receive a 10% discount for the second family member's lesson.

Assignment Instructions

You must draft a valid contract by choosing the terms that make sense for your contract from the list above. You may add additional terms as necessary to ensure that it you have a valid contract that both parties feel comfortable signing. Your contract needs to be organized in a meaningful manner allowing any reader to quickly locate key provisions of the contract. Be sure to include cancellation terms, dates of beginning and end, and signature lines. Like all business documents, ensure your document is free from spelling or grammar errors.

Refer to the section on Drafting a Contract in Learning Activities for a variety of contract examples.

After completing your contract, please include a short paragraph explaining how your contract meets the requirements to ensure its validity, (i.e., address how you have ensured that there is an offer, acceptance, consideration, and capacity).

Answer 1

Date of the contract: July 01, 2017.

Customer Name: Susan.

Address: 336 Manderly Rd., Bluestown, MI 58369.

Supplier: M/s. Gary’s Guitars.

Address: 486 Music Lane, in Rockville, MI 79236.

Subject: Contract between Susan and Gary’s Guitars for guitar lessons.

Title: Susan (The Customer) shall take Guitar lessons from M/s. Gary’s Guitars as per the following conditions and these conditions are binding on both the parties.

Starting Date: July 03, 2017.

Duration of Contract: Six Months. Starting from July 03, 2017.

Services to be provided by Gary’s Guitars:

1. Renting the guitar for a period of six months for a lump sum rental fee of $180 for the period of six months.
2. Weekly one private lesson of one hour each for total 6 months duration for a total fee of $672.
3. Alternative of joining bunch exercises likewise for an expense of $25 per exercise for the exercises joined by the client. Each gathering exercise will be for 45 minutes span.
4. The expense of the guitar given by the provider is $400 and $220 (in the wake of modifying $180 of the guitar rental) will be paid by the client to the provider toward the finish of the agreement as the parity installment for acquiring the guitar.

Payment terms: Monthly payments at the start of each month on the first lesson of the month shall be paid for the total lessons of that month, both private and group lessons and $30 for the guitar rental.

The monthly payments shall be made on or before 7^th of each month.

The Supplier will give a receipt of the installments made by the client, quickly on receipt of the cash.

Contract Validity: The contract is valid for a period of six months from July 01, 2017. In all normal circumstances the contract should be closed on December 31, 2017.

Contract Extension:

• If there should be an occurrence of any occasion, nonattendance of either the client or the provider, with earlier implication, the agreement with no punishment to any of the gathering, shall be extendable to a reasonable period to ensure the customer gets the total number of the lessons that the contract is made for. This clause is to ensure any absence due to some unavoidable circumstances like illness, heavy rains or snowing etc.
• If the customer abstains a planned lesson without prior intimation she stands to lose payment for that lesson. On the off chance that the provider does not give an exercise on the arranged date without earlier hint, he will compose one additional exercise with assent of the client out on the town advantageous to her. The supplier shall also be penalized with $5 for any such infringement of the contract.

The contract gets terminated anyway beyond January 31, 2018.

General Terms of the contract:

• The supplier shall monitor progress made by the customer during each lesson & shall also provide her the exercises to practice while at home.
• The comprehension is that the provider has the mastery and guarantees that before 6 months' over or (20, one hour exercises), the client ought to take in all rudiments and ought to have the capacity to play guitar at beginner level.

The provider will give a fresh out of the box new great quality guitar to the client from the specific first exercise and the client since is aiming to purchase the guitar ought to be permitted to bring home the guitar after each address from the eighth address onwards for her training.

Signed

Date:

The Supplier                                                           The Customer