BUSINESS LAW...

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Complete he table Effective Contract Management "Essential Elements"

MANAGING CONTRACTS MACE ESSENTIALS OF CONTRACT LAW EFFECTIVE CONTRACT MANAGEMENT EFFECTIVE CONTRACT MANAGEMENT (Contract Administration) RESULTS IN: ESSENTIAL ELEMENTS REDUCING RISKS MAXIMIZING COST SAVINGS MINIMIZING CLAIMS CONTRACTUAL ALLOCATION OF RISK (CONTRACT AGREEMENT) IMPROVING ECONOMIC RETURN DEPENDS UPON 8. COMPREHENSIVE PROPOSAL EVALUATION PROGRAM 1. MANAGING CONTRACT RISKS 2. TOUGH/FAIR CONTRACT DOCUMENTS A. AVOIDING BREACH OF CONTRACT CONDITIONS 3. AGGRESSIVE NEGOTIATING PRACTICES 4. OUTSTANDING COMMUNICATION SKILLS PROCESS OF REACHING A CONTRACT WHAT IS A CONTRACT PRIORITIES OF PROJECT OBJECTIVES RISK LIABILITIES OF CONTRACTING PARTIES 1. MUTUAL BUSINESS AGREEMENT CONTROL OF PROJECT ACTIVITIES / RISKS 2. RECOGNIZED BY LAW COST OF CONTRACTING ARRANGEMENT J. ONE PARTY PROVIDES SERVICE, and 4. OTHER PARTY PAYS FOR SERVICE "Conadderallon" 5. OWNER SETS THE CONTRACTING ARRANGEMENT Contract Conditions Commercial Terms . Pricing Scope of Work (Technical) Project Execution Plan THE CONTRACT 17 . 4Contract Law Damages Homework Question (5 points] Ken owns and operates a famous candy store and makes most of the candy sold in the store. Business is particularly heavy during the Christmas season. Ken contracts with Sweet, Inc., to purchase ten thousand pounds of sugar to be delivered on or before November 15. Ken has informed Sweet that this particular order is to be used for the Christmas season business, and he needs the sugar no later than Nov. 15 so he has enough time to make all of the Christmas candy. Because of problems at the sugar refinery, the sugar is not tendered to Ken until December 10, at which time Ken refuses it as being too late. Ken was forced to travel out of town to negotiate a purchase of sugar from an alternate supplier. Despite this, Ken has been unable to purchase the quantity of sugar needed to meet his Christmas orders and has had to turn down numerous regular customers, some of whom have indicated that they will purchase candy elsewhere in the future. What sugar Ken has been able to purchase has cost him ten cents per pound above the price contracted for with Sweet. Ken sues Sweet for breach of contract, claiming as damages the higher price paid for sugar from others, lost profits from this year's lost Christmas sales, future lost profits from customers who have indicated that they will discontinue doing business with him, punitive damages for failure to meet the contracted delivery date, and any other damages the court may find to be appropriate in these circumstances. Sweet claims that Ken is limited to compensatory damages. Identify and define the types and amounts of damages that are most likely to be awarded in this case and fully explain why such damages should be awarded.QUESTION ONE You are an accountant working for Flinders Partners, and one of your clients is Empire Hotels Pty Ltd (Empire), which owns several luxury hotels servicing Melbourne's elite. Empire was incorporated in 2012, and does not have a written constitution. The directors and shareholders of Empire are Charles, Nathaniel, Blair, and Serena. Charles and Blair are joint executive directors, running the day-to-day business of the company. Serena is the Chairman, and is a high profile property lawyer. Nathaniel takes no active role in the business, and rarely attends directors meetings because he finds them boring - he only wanted to be appointed a director so that he would get VIP access to Empire's exclusive events. In 2016 a number of events occurred: At a board meeting in January 2016, Serena was given the task of investigating the purchase of a property for a new hotel site. . In April 2016, Serena negotiated for Empire to purchase property from Brooklyn Holdings Pty Ltd (Brooklyn) for $2.7 million. The other directors are not aware that Serena's father-in-law, Rufus, owns 80% of the shares in Brooklyn. Rufus is very old, and Serena is set to gain a large inheritance when he dies. . At a board meeting later that month, the directors were provided with a 50- page report from Serena. The report contained advice that this was the only site suitable for hotel development within 5 kilometres of the Melbourne CBD, and an independent valuation of the property showed the site to be worth $2.2 million. Nathaniel did not attend the meeting, and Charles and Blair did not have time to properly read the report as they were busy with hotel operations, and they were trusted Serena's expertise. Following the meeting, Serena and Blair execute the sale contracts. . Nathaniel is unhappy with this purchase, and doesn't understand how the contract could have been signed without him signing anything. REQUIRED: a) Advise all of the directors of Empire as to whether any of them have breached their duties as a director. Consider both general law and statutory duties in your answer, and also whether there are any defences available. (15 marks) b) Advise the directors on the consequences of breaching their duties as a director. (B marks) c) Advise Nathaniel on whether the contract has been properly executed. (2 marks)QUESTION TWO Refer to the facts relating to Empire Hotels Pty Ltd (Empire) outlined in the previous question. Empire has made substantial profits in its four years of operation, however the directors have not declared any dividends. Instead, the directors have approved large salary increases for executive directors and the chairman over the last four years. Nathaniel is struggling to maintain his expensive lifestyle, and is unhappy with the board's decisions. As the end of the 2015-2016 financial year approaches: . Nathaniel wants to force the other directors to declare a dividend, and finally get a return on his investment. . The other directors are unsure of whether the Empire will make a profit this year, and fear the company may not have enough money to pay its debts if they do declare a dividend. The directors seek your advice. REQUIRED: a) Advise Nathaniel about whether he can force the other directors to declare a dividend to shareholders if the company has made a profit. Advise Nathaniel of any other remedies available to him as a member. (10 marks) b) Advise the directors as to whether they can declare a dividend if Empire does not make a profit in the 2015/2016 financial year. Advise the directors of the consequences if the payment of the dividend causes Empire to become insolvent (5 marks) Total = 15 marksQUESTION THREE Refer to the facts relating to Empire Hotels Pty Ltd (Empire) outlined in the previous questions. In 2017 a number of events occurred: A combination of labour strikes and CBD planning policy changes meant that the costs for building a new hotel skyrocketed. An economic downturn hurt the profitability of Empire's existing operations. These events meant that ultimately, empire's plans for expansion were not successful and the company is now insolvent. . Nathaniel wanted to purchase the Empire's exclusive French champagne reserves, and paid $10,000. It was valued at $50,000, but other directors thought that Empire could use the money to pay other debts. The directors seek your advice. REQUIRED: a) Advise the directors as to whether they should appoint an administrator, and the consequences of this. Advise whether there are any other options open to an insolvent company. (7 marks) b) Advise Nathaniel of any potential issues with his transaction with the company if the company is liquidated. (3 marks) Total = 10 marks