SITXMGT002 Project: Developing a Contract for Business Relationships

This document presents a sample contract agreement between a hotel complex and a supplier, outlining the terms, conditions, warranties, and clauses related to the supply of goods such as heaters, chairs, tables, and service equipment. The agreement covers aspects like payment terms, supply obligations, dispute resolution, termination conditions, default clauses, indemnity, and exclusion clauses. It also includes negotiable terms like dispute resolution, mediation, and arbitration processes, along with bonus and penalty provisions. This contract is designed to fulfill the requirements of the SITXMGT002 project, focusing on establishing and conducting business relationships. Desklib provides a platform for students to access similar documents and solved assignments for academic assistance.

AGREEMENT
This agreement is made 16th day of April 2018
BETWEEN
Hotel complex
AND
The Supplier
IT IS HEREBY AGREED THAT
Intention
 Both parties intend to create legal relations.
 Both parties intend to abide by the contract.
 Both parties understand and intend that the agreement be enforced by law.
Agreement
The terms which have been agreed in relation to this contract are as follows
1. The Supplier would be paid by the hotel partly in advance and totally after all goods have
been supplied as per the desire of the hotel

2. The supplier will undertake the supply work which he has been asked to do under this
contract with due diligence and care.
3. All disputes in relation to the contract are to be dealt with in the jurisdiction of the hotel
and would be initially subjected to mandatory arbitration.
Offer
The supplier under this contract has to supply 4 attachable heaters, 100 seating chairs, 30 tables
30 umbrellas, cutlery, crockery, glassware and service equipment for a price of $40000.
Terms
It has been agreed by the parties to this agreement that:
1. The Supplier will undertake the supply of goods which he has been asked to do under this
contract with due diligence and care.
2. The supplier under this contract has to supply 4 attachable heaters, 100 seating chairs, 30
tables 30 umbrellas, cutlery, crockery, glassware and service equipment for a price of
$40000 within 30th September 2018.
3. The supplier would have the responsibility of delivering the goods to the hotel
4. The hotel would have the right to procure the goods from another Supplier if anticipatory
breaches of contract have been identified by the hotel.
5. The supplier would supply all materials within the stipulated time. Time is the essence of
the contract.
6. The Supplier would be paid by the hotel partly in advance and totally after all goods have
been supplied as per the desire of the hotel

Conditions
1. Time is the essence of the contract and the supply date is therefore one of the primary
conditions of the contract which if breached the hotel would have the right to rescind the
contract and claim damages for any losses which have been incurred.
2. The quality and quantity of the goods as asked for is also a condition of this contract
which if breached the hotel would have the right to rescind the contract and claim
damages for any losses which have been incurred.
Warranties
Delivery of the goods is the warranty under this contact. If the supplier fails to deliver the goods
to the hotel the cost of delivery would be borne by the hotel and the supplier would be liable to
compensate the hotel
Termination clause
1. The contract would be held to be terminated through the legal doctrine of frustration.
2. The contract would be held to be terminated when the hotel has identified an anticipatory
breach of contract.
3. The contract shall be terminated if it has been mutually agreed between the parties to the
contract.
Default clauses

1. Where the conditions of the contract have been if breached the parties would have the
right to rescind the contract and claim damages for any losses which have been incurred.
2. Where the warranties of the contract have been if breached the parties would have the
right to claim damages for any losses which have been incurred.
Indemnity clauses
Through this clause the hotel indemnifies itself from any liability which may be incurred due to
the actions of the Supplier during the supply process.
Exclusion clauses
The hotel would not be liable for any loss whatsoever which has been caused to the Supplier
while supplying the goods. In case of any contractual liability the liability of the hotel would be
limited to $1000 only.
Director’s guarantee
No personal guarantee is provided to the supplier by the directors for liabilities under this
contract
Negotiable terms
Dispute resolution clauses, mediation and arbitration processes
All disputes in relation to the contract are to be dealt with in the jurisdiction of the hotel and
would be initially subjected to mandatory arbitration.

Bonus and penalty provisions
Where the work has been completed on time according to the requirements of the hotel the
Supplier would be entitled to a 2% bonus.
All losses incurred by the hotel due to fault on the part of the Supplier have to be compensated
by the Supplier.