Timber Sale Contract - Analyzing Potential Issues

Names:
Nick Sardo, Anthony Vieira, Drew Kootman, Ryan Powell, Justin Neglia, William Vasko, Mark Yeilding, Martin Jison

Issues

Uniform Commercial Code

Bilateral - The seller promises to provide the timber, and the buyer promises to provide the money.

Executory - There has yet to be an exchange of money/timber between the parties, therefore the contract has yet to be executed.

Illusory - The contract itself has not been signed yet. Most likely, there has only been a verbal agreement that a contract will be signed in the future.

Statute of Frauds - Requires that contracts be in writing and signed. In this case, the contract has been wrote, and is waiting to be signed.

Modification - The contract states that "all modifications of this contract will be reduced to wriging, dated, signed and witnessed, and will be attached to this contract."

Informal - There is no prescribed form for this type of contract. It is not a contract under seal, recognizance, letter of credit, or a negotiable instrument.

Damages - Any liability for damage, destruction, or restoration of private or public improvements occasioned by or in the exercise of this contract shall be the sole responsibility of the purchaser.

Valid - The contract is valid since it does not appear to have any illegal subtance. Furthermore, this contract will be valid as long as the parties are not affected by physical or economical duress when signed.

Consideration - There is a detriment to the buyer, as they are relinquishing their money/assets to the promisor.

Exculpatory Clause - An exculpatory clause is a statement releasing one of the parties to an agreement from all liability, regardless of who is at fault or what the injury suffered is. In this case, "any liability for damage, destruction, or restoration of private or public improvements occasioned by or in the exercise of this contract shall be the sole responsibility of the purchaser. "

Material Terms - The contract does not specify quantity of timber, the price per unit of timber, type, or quality of timber.


Alternative Dispute Resolution: Arbitration - In case of dispute over the terms of this contract, final decision shall rest with a reputable person mutually agreed upon by parties to this contract. In this case of further disagreement, final decision shall rest with an approved board of three persons, one to be selected by each party to this contract and the third to be selected by the other two.

Title - The contract does not specify that the seller is the owner of the timber. This is an example of "Good Title", since the timber is to be acquired from someone who already owns the goods free and clear.