Question

Issue Spotter Instructions: For 5 of the 7 sentences in the contract below, identify the part of a contract and then briefly - in a few words or a sentence - describe any problems that may exist (or just write that the term is fine). Dave and Paul are starting their own landscaping service. They are both new to writing contracts, but they know that you are taking a business law class. They have asked you to 1 ) identify what these parts of a contract are and 2) whether there are any problems with each part (they plan to hire an attorney to review the whole contract, but they want to get a draft of it done first). Assume that common-law rules apply (not UCC Article 2).

1. Dave and Paul's Landscaping Company of Rock Hill, SC agrees to perform landscaping services (as defined in the Appendix) for Customer in a timely and professional manner. In doing so, DPL will be compensated at a rate of $100 per customer.

Answer 1

The contract between Dave and Paul's Landscaping Company and their customer appears to contain clear offer and acceptance, a defined scope of services, and consideration. However, the compensation structure is ambiguously stated as '$100 per customer' and the performance clause could be more specific. Clarifications in these areas would make the contract more precise and avoid potential disputes.

Step-by-step explanation:

When analyzing the contract between Dave and Paul's Landscaping Company (DPL) and their customer, the contract essentially contains the following aspects that need review:

• Offer and acceptance: The statement that DPL agrees to provide services for the customer indicates a clear offer and acceptance, which is a fine term provided it is accepted by the Customer.
• Scope of services: The services are defined in the Appendix, which is good practice for clarity, but the appendix must be detailed and precise to avoid future disputes.
• Consideration: Compensation at a rate of $100 per customer is mentioned, which indicates consideration, however, it's unclear whether this is per service, hour, or another measure of work.
• Performance: The term 'in a timely and professional manner' is somewhat subjective and could benefit from more specific timeframes or standards to avoid ambiguity.
• Legal capacity: There's no issue mentioned regarding the legal capacity of Dave, Paul, or the Customer, but ensure all parties are competent to enter a contract.

Overall, the draft has the basic elements of a contract, but there are ambiguities, specifically around the compensation structure that should be clarified to ensure all parties have the same understanding of the agreement.