MGMT 307

Independent Assignment 2
Business Law in Practice
Student Name Student number
Harjinder Kaur 10312065
Review the Business Law in Practice and answer the following questions.

1. If you were representing Coasters (buyer), what type of contract would you choose? Why? (5
marks)

If I were representing Coasters (the buyer), considering the situation and the need for a reliable and
cost-effective supply of high-quality tracking, I would opt for a Fixed-Price Contract
A Fixed-Value Agreement lays out a set cost for the predetermined labor and products, giving security
and consistency to planning. For this situation, the requirement for following under $2 million and
opportune conveyance lines up with the qualities of a fixed-cost agreement, guaranteeing cost
control and sureness.
This decision would have been made to guarantee an unmistakable comprehension of expenses and
to lay out a characterized cost for the following, which might have forestalled false impressions or
startling cost vacillations that have emerged in the situation.

2. If you were representing Trackers (vendor), what type of contract would you choose? Why? (5
Marks)
If I were representing Trackers (the vendor), given the unexpected increase in manufacturing costs
due to a shortage in steel that impacted their ability to meet the initial contract terms, I might opt for
a Cost-Reimbursable Contract.
An Expense Reimbursable Agreement takes into consideration the merchant to be repaid for the
genuine expenses caused, possibly including unanticipated or inflated costs because of circumstances
unchangeable as far as they might be concerned, like the unforeseen deficiency of steel. This sort of
agreement could offer assurance and pay for extra costs caused during the task, which could line up
with the surprising expense increment looked at by Trackers in this situation.

3. Is Coasters legally obligated to pay the 20% price increase? Explain. (5 Marks)

No. The lawful commitment for coasters to address the 20% cost increment relies upon the terms
framed in the agreement. On the off chance that the agreement doesn't have arrangements
permitting cost changes because of unexpected conditions, Liners may not be lawfully committed to
paying the increment.
4. Can Coasters commit itself to the price increase and then change its mind with no adverse
consequences? Explain. (5 Marks)

No, Coasters probably won't have the option to focus on the cost increment and afterwards adjust its
perspective without antagonistic outcomes, contingent upon the particular terms and provisions
inside the agreement
 MGMT 307
Independent Assignment 2