Question
Creating a detailed contract for my client based on the following: Client: Tire Manufacturer, FT. Wayne, Indiana. The client is contracting to provide 15,000 tires
Creating a detailed contract for my client based on the following:
Client: Tire Manufacturer, FT. Wayne, Indiana.
The client is contracting to provide 15,000 tires per month to Car Assembly Plant in Louisville, Kentucky for the next 3 years. The price agreed upon is $30 per tire. The tires must be all-weather with a 60,000-mile warranty. It will be a destination contract.
Car Assembly Plant is insistent that the tires be delivered in a manner so that there is always only a two-day supply stored at the Car Assembly Plant. The plant does not have enough room to store any additional tires. They would like there to be a penalty if Tire Manufacturer brings too many. The client is concerned about this provision as the number of cars manufactured each day varies.
Car Assembly Plant is also concerned that the tire supply is never delayed because Car Assembly Plant has to pay the assembly workers if the assembly line stops because there are no tires. Car Assembly Plant wants Tire manufacturers to pay for any downtime expenses due to a lack of tires.
The Client would like there to be an Arbitration clause and that Indiana is the state to resolve issues.
Additionally, there should be a Liquidation clause and non-disclosure clause.
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