100%(4)4 out of 4 people found this document helpful
This preview shows page 20 - 22 out of 32 pages.
Furthermore, Paula should have asked for a detailed list of the type of equipment included in the trailer. This could have better defined the contract terms. However, since it was not defined in the terms of the written contract signed by Paula, the television is not a term of the contract. However, before Slick Willy prepared the written purchase agreement, the television was a term of the contract. This is shown by Slick Willy making an offer by saying, if she wanted the television set, he would throw that in for an additional $1,000, this statement then became a term of the contract. Paula did verbally accept this offer by saying, “take it all”, meaning agreeing to the additional price for the television. Once the written purchase agreement was signed by Paula, and the total price did not reflect the additional $1000 in the contact terms, therefore there is reasonable evidence to suggest that the television was not a term of the contract, the contract being, the written purchase agreement. Mark: 2/45. The following breakdown shows the types of legal risk management strategies Slick Willy should use toavoid or minimize the risk from the case in the future or why other strategies would not work. Risk AvoidanceSome risks are so serious that they should be avoided altogether. In Willy’s situation, we recommend using this strategy. Slick Willy could take full responsibility for the mistake he implemented on the documentation of the contract as both the written and oral discussion didn’t align by quickly handing in the TV that was discussed. Doing this lessens the chances of the customer taking legal action against Willy’s enterprise.Risk ReductionIn regard to Willy’s situation. Willy can discuss the situation with the customer and ask for other methods of compensation such as a contract update from the previous one that was intended. Reducing risk does entirely remove the entire problem as issues would still be present or would likely to occur again.Risk ShiftingWilly can transfer risks to his employees as a way of creating responsibilities by allowing them to handle the situation in a manner that he might fail to provide. This risk method enables third parties to quickly formulate methods of resolving a current situation as a joint effort is being made.Risk AcceptanceWilly could accept the full legal risk of being held liable in regard to the contract terms that were discussed and documented as they would be considered a fraudulent practise to the buyer. With this, it becomes his financial obligation to protect his business operation and reputation. This could be
considered beneficial as he is able to easily identify the risk, analyse the situation and next approaches to take that becomes a lesson.