$13.$ Working with Contracts

The following exercise is intended to help ADMN $3250$ students gain some familiarity in reading and analyzing contracts. A sample web design contract is provided.

Review the sample Website Design Contract provided below $($pp$.7-11).$

a$.$ What is the consideration that each party provides in this transaction? $(0\mathrm{.}3)$

b$.$ Identify any two types of clauses contained in the contract as listed below. Briefly, what is their impact? $($Value: $0\mathrm{.}7)$

i$.$ Indemnity clause $=$ Clause $12$

ii$.$ Flexible pricing clause $=$ There are various references to payment terms and specific charges or additional fees throughout the contract. See clauses $2,3,5,6,7,8$ and $9$

iii. Limitation of liability clause $=$ Clause $11$

iv$.$ Entire agreement clause $=$ Clause $15$

c$.$ If you are a client negotiating with SWDD to design and build your website, what clauses in the contract might concern you? How can you minimize the risks associated with these concerns? What changes would you consider asking for, if any? $($Value: $0\mathrm{.}5)$

d$.$ Assume you entered into a Website Design Contract with SWDD for your business according to the terms of the sample contract. The fee for the project is $$3,000$ for $10$ web pages. The completion date is set to coincide with a special online promotion expected to generate $$5,000$ in profits. SWDD fails to complete the website by the completion date through no fault of yours. The anticipated sales from the online promotion fail to materialize. What avenues of recourse do you have? What losses or damages could potentially be recovered $($or not$)?$ Explain your answers. $($Value: $0\mathrm{.}5)$