Background: Contracts are essential for business, and will be an integral part of GC operations, so the owners now want to focus on contract law. Each of the owners has experience with contracts in their own businesses, and appreciate the probable risks and liabilities associated with contracts. They also know that to avoid possible disputes with employees and clients, contracts should be comprehensive, clear, and specific.
The GC owners know that there are various types of contract agreements relevant to their business. GC will have individual contracts with employees, independent contractors, and other agents who will represent the company. Also, GC will engage in sales contracts with other businesses, consumers, and clients.
To reduce disputes and risks and liabilities associated with contracts, the owners want all contracts to be written, with specific, complete, and clear terms. Contracts must define the rights and responsibilities of the parties. Also, since employees and/or independent contractors will be performing cleaning services on clients’ properties, these contracts should require bonding for all employees.
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You, Winnie, and Ralph presented draft contracts for GC employees, including different contracts for cleaners, office managers, marketing specialists, sales representatives, and IT employees.
The GC owners reviewed the drafts and have some questions about the contracts.
Instructions: This is an application-oriented Learning Activity. You will not find verbatim answers anywhere. Engage in critical thinking and review all this week’s assigned readings in Overview. You may also need to review previously assigned materials in weeks 2 and 3.
At Winnie’s and Ralph’s request, it is your responsibility to research and provide answers to the GC owners’ questions.
As an example, Winnie, Ralph, the GC owners, and you have determined that GC’s contract with its cleaner- employees will include the following terms and conditions:
specific duties to be performed by cleaner-employee
salary for cleaner-employee
terms of payment for overtime or holiday work, if any
training requirements for cleaner-employee
length of contract
bonding for cleaner-employee
periodic performance evaluation and how it will be conducted
termination of the contract, i.e., a notice of termination, etc.
Winnie and Ralph have asked you to begin developing a contract between GC and its cleaning clients.
1. Identify five (5) contract terms and conditions – other than price – that should be included in the GC contract with its cleaning clients.
2. Analyze and briefly discuss why each term is important to include in a GC-client cleaning contract.
Prepare responses to GC questions in a report, addressed to Winnie and Ralph, to be used in discussion with the Green Clean owners.
The report should address the question in the Instructions above. Follow the format below.
TO: Winnie James, Ralph Anders
FROM: (your name)
RE: Green Clean Contract Risks and Liabilities
Contract Terms and Conditions
Write in correct, complete sentences in paragraph format.