Every business enters into contracts. You and your partner will imagine a situation where your business could be sued for breach of contract by a supplier or customer. You and your partner will answer the following questions in writing on your Adobe Web Page:

1. Describe the breach of contract with the supplier (2 marks) Your answer should identify the supplier (i.e. what do they supply you) or the customer ( what you give to them) Your answer should specifically identify how your business allegedly breached the contract 2. Identify and explain whether the claim is for a breach of condition or warranty (2 marks) To answer this question you must know what is a condition vs a warranty and how are they different Hint ... in contract law, a warranty is not about repairing a product and a condition is not about the "terms and conditions" - review the course content for the answer 3. Identify and discuss two clauses/terms that you could include in your contract to reduce or eliminate the risks of being sued for breach of contract. For each clause, explain how it helps reduce the risks (4 marks)

BUSINESS FORMS (7 MARKS)

Initially, when you set up your business, you did not know if it was going to succeed, so you set it up as a sole proprietorship. After several successful months, you revisit that decision and wonder if there is a better business form that you should switch to. You take into account the following details:

You have personal assets including a vacation home and $100,000.00 in savings You have a day job earning $50,000.00 per year

Now that your business is a success, you want to find a real estate agent to find you new premises.

You and your partner will answer the following questions in writing on your Adobe Web Page:

1. A brief explanation for why it made sense for you to start your business as a sole proprietorship. Your answer should reference at least two benefits of a sole proprietorship (2 marks) 2. Identify which business form is the best option now in light of your business' success, personal assets and income from your day job (1 mark) 3. A brief explanation for why this new business form is the best option. Your answer should reference at least two benefits of that business form given your business' success, personal assets and income from your day job (2 marks) Please note in order to answer this, you must understand each of the different business forms, who are permitted to form them, and the pros and cons of each 4. With reference to course material only, explain how your agency relationship will work with the real estate agent (2 marks)