*INSTRUCTIONS ARE BELOW *NEED HELP MAKING A CONTRACT For Lesson Six you are required to draw up a contract for the sale of personal property. You will be the Seller and I am going to be the Buyer. The contract is to be for any item of personal property that you choose. It could be for a car, stereo system, bicycle, jewelry, or any other interesting piece of personal property. Please prepare the contract in Microsoft Word and send the document to me as an attachment by email. It is due by Tuesday of this lesson. You will be graded on how well the contract stands up to scrutiny including format, clarity, time lines and descriptions, etc. It is important that the contract contains all the elements of a contract as described in Chapter 7. You must describe your personal property so it can not be confused with another item of personal property. You must establish the terms of the sale between seller and buyer. Make sure your contract includes the necessary items such as names of the parties, price, how and when payment is to be made, where the transfer is to take place, and any conditions of sale (i.e., "as is", "to include carrying case and accessories", "bicycle to have complete tune-up prior to transfer"). A good rule of thumb is that if someone reading your contract draft says "what does this mean" or "how can I identify the property," you may have a problem. For some sample steps in creating a contract please see the instructions found at: http://www.ehow.com/how_4473464_write-bill-sale.html. This site includes generic instructions on how to create a Bill of Sale. There are also links to other sites where you may find some examples to use as a format when you design your Bill of Sale. There is also two forms at the end of this lesson page. EXAMPLE: This Agreement is entered into on this _____ day of 20__, by and between Corrine Smith, hereinafter the Seller, and Donna DiGiovanni, hereinafter the Buyer. In consideration of the mutual promises set forth hereunder, the sufficiency of which is hereby acknowledged, Corrine Smith and Donna DiGiovanni hereby agree as follows: Seller hereby certifies that she is the lawful owner of the following described property and she has the authority to sell it: YEAR: 2007 MAKE: BMW MODEL: 325i VIN: BMW1234567890 Seller hereby acknowledges the receipt of $10,000 in the form of a bank check, from Buyer as full payment for the purchase of the above described property, which is sold "AS IS", in its present condition. Seller hereby states that the mileage of the vehicle at the time of this agreement is 82,000 miles. Seller agrees to sell and transfer full ownership of this vehicle to the Buyer. Seller certifies that this vehicle, at the time of sale, is free from all encumbrances, taxes, fees and liens except as those specified on the Certificate of Title listed below; and she will defend and be held fully responsible for such lawful claims and demand with respect to the vehicle, if any. Buyer accepts full liability for the vehicle, damages, and any third party liability incurred from the vehicle use from the date of sale. If applicable, Seller agrees to make arrangements for the reasonable delivery of vehicle title from lien holder to Buyer immediately. Time shall be of the essence in the performance of this Agreement. If any part of this Agreement is held unenforceable for any reason, the remaining portion of this Agreement shall remain in full force and effect, and shall be carried out in a manner which is consistent with the intentions of the parties hereto. If any legal action or proceeding, including any arbitration of disputes, arising out of, or relating to, this Agreement is brought by either party, the prevailing party as determined by the Court shall be entitled to receive from the non-prevailing party, in addition to any other relief that may be granted, reasonable attorney's fees, costs and expenses incurred in the action or proceeding by the prevailing party. Executed under seal this _____ day of ______________, 20___ . ________________________ ________________________ Corrine Smith, Seller Donna DiGiovanni , Buyer