Contract Creation and Management Paper

Contract Creation and Management Paper

Dwight L. Warren

LAW531

October 23, 2012

Harold Walthall

Contract Creation and Management

A contract is defined as a binding agreement between two parties or more. The parties can range from or can be government and business entities or individuals. Customarily, during contractual negotiations, one party offers to complete specific actions in return for payuments from the other parties. In the case of Non-Linear Pro and Quick Takes Video, both of whom are considering legal action, the application of a contract management plan could have avoided the legal collision course they are about to embark on (Luther, 2012).

Non-Linear Pro

Non-Linear Pro is facing a product liability issue. When Quick Pro Video leased the editing equipment from Non-Linear Pro, there were certain expectations required from the use of the equipment. The representative of Non-Linear guaranteed that the editing system could be up and running in a day and a half and running twice as fast as their previous system. The operators of Quick Takes Video took everything a step deeper by completing the one-day training course with a Non-Linear provided trainer, watched the video tutorial, and extensively read over the complete equipment manual. To further complicate the situation, one of the operators was injured when attempting to remove the hard drive out of the equipment, cutting her finger.

The performance of the equipment was also subpar, taking twice as long to process data. This was due in part to inadequate memory, not allowing the process of no more than five minutes of video at high resolution. The system also was with bugs and viruses, damaging the software and allowing the program to crash constantly. These are issues that affected the productivity and profitability of Quick Takes Video.

Non-Linear misrepresented the quality of the product, and as a result could be sued for breach of warranty. Under the Uniform Commercial Codes warranty section for leases, there is a provision for express warranties. This provision provides that whenever a seller or a lessor makes and express warranty regarding the way a product will perform, they are guaranteeing the product will perform that way. An express warranty requires specific statements of fact, not opinions regarding what the product will do. The specific statement in this case was the ease which the editing system would perform.

Contract creation