Business Law

This article discusses the importance of negotiating contracts with suppliers, maintaining good relations, and complying with contract terms in business law. It also covers the key performance indicators (KPIs) and the process of amending a contract. The subject is business law, and the content is relevant to students studying this subject in any college or university.

Running Head: BUSINESS LAW
Business Law
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1BUSINESS LAW
As provided in the given case study it can be stated that the hotel owners have decided to
renovate and extend the bistro. By virtue of being the purchasing manager of the hotel, I have
been granted the authority to negotiate contracts with the suppliers to the value of $150,000
dollars. Therefore in the event of negotiating contracts with the suppliers which are more that
150,000 dollars in value, it is essential to get the approval of the directors, managers and the
owners of the company.
It is essential to maintain good relations with suppliers as suppliers not only provide goods and
services, they are instrumental in running the business. Inspecting whether the suppliers are
given payments timely is essential to maintain good relations with the suppliers. Pay records of
the suppliers an be reviewed. Monitoring the financial position of the suppliers can also be
helpful for maintaining a good relationship with the suppliers. Proper records of the defective
goods supplied by the suppliers must be kept and inspected so as to address such issues with the
suppliers.
In this contract the important contract terms are that the contract would complete the
construction work in time and that the contractor would paid the amount that is mentioned in the
contract upon the completion of the construction work. Thus to ensure that all the contract terms
are complied with, it is essential to ensure that the contractor would be paid in time and the
specified amount as mentioned in the contract. However, in case of delay penalty would be
imposed upon the contractor and contract can even be rescinded.
KPI can be defined as the key performance indicator. It is the measurable value that shows how
effectively a company is achieving its objectives. High level of KPI may focus on the overall

2BUSINESS LAW
achievement of the organization. Targeting the number of the complaints received by the
suppliers can help the business to check how it addresses such complainants and how effective is
the dispute resolution process of the business.
The terms of the contract must be discussed with the relevant stakeholders which include the
suppliers and the managers and the owners of the hotel. A copy of the contract must be provided
to the relevant stakeholders so that they can examine and evaluate the document. After
inspection of the contractual document, it might be signed by the contractor and the supplier,
however in case any term of the contract is found to be ambiguous, such contract can be revised
and sent again for approval.
It can be stated that the terms of the contract are legally binding upon the parties. However the
terms of the contract can be amended if it is sought by both the parties to the contract. Such
amendment to the contract must be done within the life cycle of the contract. Thus in case of any
dispute regarding the payment method, the contract can be amended.
For amending the contract, it is important to notify all the parties to the contract about the change
in the contract terms which in this given case study include the owners, directors and the
suppliers.
Good relations can be maintained with the suppliers by communicating with them freely. Paying
the suppliers on time and address any issue faced by them can also help contractors to build good
relations with the suppliers.