In this exercise, you'll look at a contract to explore what is important in the drafting of a legal exchange of promises.

The parties to this said written contract, heretofore known as Party I and Party II, agree to engage in a contract for providing child care. The party known as Party I has a child who is in need of being provided care. The party known as Party II is the corporation, Joe's Jammies Daycare, which will be providing the care to the first party, known as Party I.

Party I affirms that his child requires regular daycare on weekdays during normal business hours. Party I affirms that he will pick up his child within 30 minutes of the end of the normal business day. Should Party I delay in picking up aforementioned child, Party I will be subject to a $5 fee on each day he does not pick up child within 30 minutes of the end of normal business day. This $5 fee will be payable upon picking up the child at a time that is later than 30 minutes after the end of the normal business day.

Party I agrees to pay a reasonable fee for child care during normal business hours. This fee shall be based on prevailing market rates at the time when the care is provided. Such rates will be determined on a monthly basis, by taking the average of the daycare costs of the three closest daycares to Joe's Jammies. Party I will be responsible for contacting the three closest daycares to find out the cost of daycare at said daycares. Party I will record the cost of each of said daycares on the 1^stof the month and these costs will be averaged in order to determine the fee party I will pay Party II for the upcoming month. This fee will be paid on the 3^rdof every month, once the appropriate fee amount is determined.

Party I will pay the agreed-upon fee by check, cash, or credit card. Party I will make the payment no later than the 3^rdof every month, or will be subject to a late fee of $5 per day for each day he is late in paying the agreed-upon fees. The fee is due in whole for the month, regardless of whether Party I uses the daycare service every day or whether one or more days is missed by Party I due to scheduling conflicts or illness on the part of the child. The fee is not refundable if Party I chooses not to avail himself of care services.

Party II agrees to provide a reasonable standard of care and ensure, to the best of its abilities, that the child is cared for in a safe environment. Party II will employ only qualified staff to care for Party I's child. In order to be considered "qualified," the staff member must have at least three prior years of childcare experiences, as well as references from at least five prior childcare jobs. Staff member must also have a minimum of an associate's degree, and must be first aid and CPR certified by the American Red Cross.

If Party II is unable to provide qualified staff to care for the aforementioned child of Party I, then Party II will provide at least 30 days' notice to Party I. Party II will also refund any monies paid by Party I for the month that the care is being provided in, if Party II becomes unable to provide care with less than 30 days' notice.

Both parties may terminate the contract at any time with 30 days' notice and there shall be no further obligation. Both parties may also terminate the contract if there is non-payment of fees on the part of Party I or if Party II violates the requirements to provide qualified staff and care during routine business hours.

1. In a discussion post, answer the following questions about this sample contract:

• What do you think are the strengths of this contract?
• What would you say are the weaknesses?
• Do you think the language is clear and precise?
• What are two specific problems with this contract that might need to be fixed?
• What would you do to change it to address its weaknesses?
• Have you or a family member ever used a contract (of any kindremember that a contract can be an ad in the newspaper) that wouldn't hold up if challenged in court? Describe the situation, and discuss what you would have changed in the contract.