Assignment #1 is worth 12.5% of the final grade and is a take-home assignment. (Assignment #2 will also be worth 12.5% of the final grade, that is, as noted in the Supplementary Course Outline, the two (2) assignments will collectively be worth 25% of the final grade).
You may do the assignments individually or in groups of no more than three (3) students. Please indicate your name(s) and student number(s) on your answer to the assignment. Please submit your answers to the assignment in type-written format in hard copy in class or by leaving a date-stamped hard copy at the Business School reception desk or by submitting your answer electronically via Blackboard or email.
Assignment #1 is due on Friday March 10, 2017 at 11:59 pm and no later. Late submissions will receive an automatic 20% deduction from the grade and no late submissions will be accepted after Thursday March 16, 2017.
Assignment #1 relates to Contract Law and is intended to help students gain familiarity in reading and analyzing contracts. (Contract Law is covered in Chapter 4 of the Textbook, in the Chapter 4 Powerpoint slides and is being discussed in class).
Review the attached sample Website Design Contract which Superior Website Design and Development ("SWDD") uses with its clients and answer the following questions:
a. What is the consideration that each party (ie. SWDD and the client) gives to this transaction?
b. Identify the following types of clauses contained in the contract. What is their impact?
i. Indemnity clause
ii. Flexible pricing clause
iii. Limitation of liability clause
iv. Entire agreement clause
c. If you are a client negotiating with SWDD to design and build your company's website, what clauses in the contract might concern you? How can you minimize the risks associated with these concerns?
d. Assume you entered into a Website Design Contract with SWDD for your business according to the terms of the sample contract attached. The fee for the project is $3,000 for ten web pages. The completion date is set to coincide with a special online promotion expected to generate $5,000 in profits. SWDD fails to complete the website by the completion date through no fault of yours or that of your business. The anticipated sales from the online promotion fail to materialize. What avenues of recourse do you have?
What losses or damages could potentially be recovered (or not) from SWDD? Explain