1. Negotiation and Drafting
Contracts
Negotiation and Drafting

2. What is a Contract
a: a binding agreement between two or more persons or parties ; especially one legally enforceable
b: a business arrangement for the supply of goods or services at a fixed price
-Merriam-Webster

3. Have you agreed to a contract?
How many people think they are party to a contract?

4. Examples

5. Examples
Credit Card Agreement

6. Examples
Credit Card Agreement
Signed agreement related to a job

7. Examples Credit Card Agreement Signed agreement related to a job
Online agreement when starting a Facebook or account

8. Examples Credit Card Agreement Signed agreement related to a job
Online agreement when starting a Facebook or account
An agreement to buy something from a friend

9. Examples Credit Card Agreement Signed agreement related to a job
Online agreement when starting a Facebook or account
An agreement to buy something from a friend
Buying something from a store

10. Facebook terms and conditions
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11. Civil Legal Duties Tort Contract Who has the duty
Groups of people, generally everyone.
The specific individuals who willfully enter into the agreement.
What binds individuals
Laws of society bind everyone in it.
Specific agreements in which the parties mutually bind themselves.

12. What does it mean to Contract?
Contracts are about:

13. What does it mean to Contract?
Contracts are about:
Bargaining

14. What does it mean to Contract?
Contracts are about:
Bargaining
Coming to an agreement

15. What does it mean to Contract?
Contracts are about:
Bargaining
Coming to an agreement
Being willing to be legally bound to your side of that agreement, as long as the other party is bound to theirs

16. Elements of contracting
Offer
Acceptance
Consideration

17. Elements of contracting
Offer
Acceptance
Consideration
These are the basic elements, but contract law can get a lot more complicated

18. Offer
An offer is an invitation to make a contract

19. Offer
An offer is an invitation to make a contract
Examples?

20. Offer An offer is an invitation to make a contract Examples?
Displaying a take it or leave it contract online
Bidding on ebay
Putting a price tag on an item in a store

21. Offer An offer is an invitation to make a contract Examples?
Displaying a take it or leave it contract online
Bidding on ebay
Putting a price tag on an item in a store
Offers can go back and forth (but don’t have to) until…

22. Acceptance
The point at which one party agrees to the other parties offer
Examples
Clicking that you accept the online contract
Winning an ebay auction
Buying the item from the store

23. Consideration
Generally, courts will only enforce a contract if both sides are getting something.
What each side gives the other is called consideration.

24. Is this a contract?
In each of the following examples, ask yourself if there is mutual consideration?

25. Is this a contract?
You order a book of Amazon.com. Your credit card is charged, but no book ever shows up.
Was there a legally enforceable contract?

26. Is this a contract?
You order a book of Amazon.com. Your credit card is charged, but no book ever shows up.
Was there a legally enforceable contract?
Yes, you agreed to pay Amazon.com money and they agreed to send you a book.

27. Is this a contract?
Last year, your uncle promised you an iPhone for your 18th birthday. When you turned 18, he gave you his old broken basic cell phone.
Was there a legally enforceable contract?

28. Is this a contract?
Last year, your uncle promised you an iPhone for your 18th birthday. When you turned 18, he gave you his old broken basic cell phone.
Was there a legally enforceable contract?
No, while your uncle made a promise, he did not receive any consideration in return. Consideration has to be more than good feelings.

29. Is this a contract?
You signed up for a week long summer basketball camp which cost $100. You paid and went to the camp. When you got to the camp, they just had you watch football movies all day.
Was there a legally enforceable contract?

30. Is this a contract?
You signed up for a week long summer basketball camp which cost $100. You paid and went to the camp. When you got to the camp, they just had you watch football movies all day.
Was there a legally enforceable contract?
Yes. You agreed to pay money to the camp and they were supposed to give you basketball training.

31. Negotiation and drafting activity
We are going to negotiate and draft a contract
Negotiating and drafting contracts is something that a lot of lawyers do—including hopefully me.
The goal is to come to an agreement.
This requires each side to compromise, so that they can get what they really want—to make a deal.

32. When drafting be sure to
Include all the terms
Don’t be afraid of creative solutions
Use specific binding language:
“Shall” not “Will”
X shall pay Y $10.
Y shall wash X’s car.
Not:
X will pay Y $10.
Y will wash X’s car.

33. Chris Brown’s new record deal
Following the recent news reports of his arrest for Domestic Violence, Chris Brown’s record label decides not to renew his record deal.
Chris Brown has found a new record company—Song & Dance Records—interested in signing him to a new recording deal.
Chris Brown’s agent, who is trained as a lawyer, is negotiating the terms of the deal with a lawyer for Song & Dance.
After agreeing on the terms, they will draft a contract to bring to their respective clients—Chris Brown and Song & Dance executives.

34. Record deal terms Royalties of music sales
Duration of deal (number of albums)
Termination
Optional (if you have time):
Cash advance (upfront money taken away from future royalties)
Exclusive agreement (can Chris Brown record an album with a different label)
When the next album will released
Money for production