MEMORANDUM Explaining the purpose of each clause in the draft contract


MEMORANDUM

 

To:

From:

Date: 4th April 2022

SUBJECT: Explaining the purpose of each clause in the draft contract

 

The purpose of this memorandum is to explain the purpose of each clause in the draft contract.

Every clause is appropriate in this contract because every clause in this Contract is essential for a Valid contract of Sales of Goods and these are the general conditions of sale. The following are the purpose of each clause in the draft Contract for the Sale of goods :

·         In a contract, the offer is a starting point for a contract and there must be a lawful offer by one party and lawful acceptance of that offer by the other party. So the purpose of the first clause Sale of Goods is that in this the Seller agrees to sell the goods to the buyer.

·         The second clause is the purchase price which is the consideration for its consideration is one of the essentials for a valid contract and an agreement without consideration is void. The consideration in a contract of sale must be price.

·         The purpose of this clause installment Payment is appropriate because it is important to mention the mode of payment in which the payment will be done to the Seller.

·         The delivery and  Shipping clause is important in the contract because in this it is mentioned on which day, time, and place the delivery of the Goods will be done by the Seller to the Buyer.

·               This clause Inspection of goods and rejection is also important in the Contract of Sales of goods that if the Goods are rejected by the Buyer by any means so he will allow the Seller a reasonable time to cure these deficiencies.

·               The purpose of this clause Title is that it is an implied condition that the seller has the right to sell the goods. If the buyer comes to know that the seller has no right to sell the goods, he may reject the goods and recover the price.

·              Mentioning this clause Excuse for the delay is also appropriate because if by any reason or means there is a delay in the delivery of the Goods to the buyer the Seller will be not responsible for it if this clause is not mentioned in the contract and any kind of delay in the delivery comes so than the Seller will be responsible for it.

·         The clause of Termination is important to mention in the contract because if for any reason the contract is terminated so the buyer will be responsible for the payment and the seller will be secure from the loss.

·         This clause Limitation of liability is also important to mention in the Sales of goods Contract that if any damage has occurred from any part of the agreement so any of the parties will be not liable for the injury or loss if this clause is not mentioned then the parties will be responsible.

·         Legal and binding agreement is also appropriate to mention in the contract of Sales of goods because the party each represents that they have the authority to enter into this agreement. 

·         This clause Governing law and jurisdiction is also appropriate for the Sales of goods contract because in this clause specifically it is mentioned that the contract will be governed according to which jurisdiction and it is important to mention it in the contract.

·         This last clause Entire agreement of the contract should be mentioned in the contract because in this it is mentioned that the parties acknowledge and agree that this Agreement represents the entire agreement between the parties. So it is important to mention it in the Sales of goods contract.

 

So, every clause which is mentioned in the draft contract for the Sales of goods there is an appropriate reason for it and every clause in that draft contract is important. The contract is not considered valid until these clauses are been mentioned in it.