Background: Contracts are essential for business, and will be an integral part of GC operations, so the owners now want to focus on contract law. Each of the owners has experience with contracts in their own businesses, and appreciate the probable risks and liabilities associated with contracts. They also know that to avoid possible disputes with employees and clients, contracts should be comprehensive, clear and specific.

The GC owners know that there are various types of contract agreements relevant to their business. GC will have individual contracts with employees, independent contractors, and other agents who will represent the company. Also, GC will engage in sales contracts with other businesses, consumers and clients. Furthermore, GC will use electronic contracts, or e-contracts, in conducting online business transactions.

To reduce disputes and risks and liabilities associated with contracts, the owners want all contracts to be written, with specific, complete, and clear terms. Contracts must define rights and responsibilities of the parties. Also, since employees and/or independent contractors will be performing cleaning services on clients properties, these contracts should require bonding for all employees.

You, Winnie and Ralph presented draft contracts for GC employees, including different contracts for cleaners, office managers, marketing specialists, sales representatives, and IT employees.

The GC owners reviewed the drafts and have some questions about the contracts.

Instructions:

This is an application-oriented Learning Activity. You will not find verbatim answers anywhere. Engage in critical thinking and review this week's assigned readings. You may also need to review previously assigned materials in weeks 2 and 3.

At Winnies and Ralphs request, it is your responsibility to research and provide answers to the GC owners questions.

The first questions you need to address relate to the GC cleaner-employee contract.

The cleaner-employee contract specifies the following terms and conditions:

specific duties to be performed by cleaner-employee

salary for cleaner-employee

work hours

terms of payment for overtime or holiday work, if any

sick leave

vacation leave

training requirements for cleaner-employee

length of contract

bonding for cleaner-employee

periodic performance evaluation and how it will be conducted

termination of contract, i.e., notice of termination, etc.

1. Consider the contract term: "training requirements for cleaner-employee".

Analyze and discuss several reasons from the GC owners perspective - why it is important to include specific terms and conditions describing training requirements in the cleaner-employee contracts. Focus on how/why these contact terms can protect GC from tort liability.

2. Consider the contracts between GC and its clients. Identify at least one (1) contract term - other than price - that should be included in a GC contract with a client for GC to provide office cleaning.

Analyze and discuss why it is important to include this additional term in the GC-client cleaning contract.

Format Instructions:

Prepare responses to GC questions in a report, addressed to Winnie and Ralph, to be used in discussion with the Green Clean owners.

The report should address the questions in the Instructions above. Follow the format below.

REPORT

TO: Winnie James, Ralph Anders

FROM: (your name)

DATE:

RE: Green Clean Contract Risks and Liabilities

1.

2.