Analyzing a Contract: World Spice and Australian Purchaser Agreement

This assignment analyzes a contract between a vendor of a spice blend called 'Exotic Melange' and a purchaser intending to import herbs and spices. The contract details the product description, quantity, quality standards, pricing, payment terms, delivery deadlines, and potential damages for delays. It also addresses liquidated damages, cancellation clauses, conditions precedent and subsequent, deposit requirements, liability limitations, force majeure events, governing law, and arbitration. The assignment examines the key elements of a contract including offer, acceptance, consideration, capacity, and legality. It explores the importance of written contracts, potential breaches, and available remedies. The assignment provides a comprehensive overview of contract law principles through the lens of a practical business agreement.

CONTRACT
THIS CONTRACT executed on ____day of____,2019 at________ between Ms. Farima Smith
owning a shop named “ World Spice” in Turkey (Hereinafter called the “VENDOR”) of One Part
and Mr. XY, owning a shop named “_______” in Australia (hereinafter called the “Purchaser” )
of other part.
WHEREAS the Vendor is the manufacturer and dealer of a spice blend called Exotic Melange
(mixed herbs and spices).
WHEREAS the Buyer intends to start a new business as an importer of exotic herbs and spices
around the world.
WHEREAS both parties declare an interest in the sale and purchase of spices (product) under
this Contract and undertake to observe the following Contract:
1. Description of Product: The product named ‘Exotic Melange" from World Spice is a blend
of herbs and spices and will be used extensively for cooking in Kamloops as people here
have the great appetite of international foods.
2. Quantity: Subject to terms and condition of this contract, Buyer shall purchase at least 3
Kg of “Exotic Melange" at the initial stage, subject to further terms and condition between
the parties , the buyer may increase or decrease the quantity of the product, Provided
the buyer shall inform the Seller about the Quantity of the product to be delivered
3. Quality: The quality of the product is the essence of the Contract, and in the event of
failure to maintain the quality of the product, the buyer may dissolve the contract by
giving 15 days' notice.
4. Pricing: The pricing of the product shall be $20 per K.g of the product, whereas, on order
of at least 2 k.g of the product, an additional discount shall be provided.
5. Payment: The buyer shall pay the principal or interest (if any) on or before the due date.
6. Deadline: The goods shall be delivered by the Vendor until the 20th of every month. In
case of any delay in delivery of goods, the buyer is entitled to claim the damages equal
to 1% of the amount of the contract at that period Provided the buyer notifies the seller
about the delay within 10 days from the agreed date of delivery.
7. Liquidated damages Clause: In the event of a buyer fails to comply with the terms and
conditions under the Contract, the vendor's damages would be uncertain, depending
upon the future interest rate or trading volumes.

8. Cancellation: Either party may terminate this contract at any time by giving at least 15
days written notice to another party
9. Condition Precedent: The obligation of the parties under this contract shall be subject to
approval by the credit union by July 30.
10. Condition Subsequent: In case the Buyer fails to satisfy the condition subsequent in
clause 9 then this contract will terminate immediately
11. Deposit: As security for the fulfillment of the Conditions under contract, the buyer shall
pay a deposit amount at the rate of 5% of the purchase price within 10 days from this
agreement
12. Exclusion: The Buyers liability under this Contract whether in negligence, tort, or for
breach of statutory duty or otherwise shall be limited to $200
13. Force Majeure: Neither of the abovementioned party shall be in breach of its obligations
under this agreement due to any war, public hospitality, public enemy, fires, floods, etc
provided the other party shall provide the notice within 21 days from the commencement
of such event.
14. Governing Law: This Contract shall be governed by the Contract Act including all the
rules made thereunder (if any)
15. Arbitration: Every difference or dispute which may arise hereinafter between the
abovementioned parties or their representative regarding this contract or otherwise shall
be referred to a Sole Arbitrator by the Arbitration Act, and the award shall be binding on
both the parties.