Axis Consulting V Dbi Component Software - Law Assignment Help

Assignment Task

Part A Contract Clauses

1. Contract Formation 
Indicate in the space provided below all of the contract clauses you would need to achieve the following business requirements. Provide your answers on the following answer sheet.
1. You want make sure you don’t have to ask permission to increase the price if your costs go up.
2. You want to make sure that the entire contract does not get thrown out because one or two terms are inconsistent with legislation.
3. You want to make sure that you are only liable to some maximum $ amount if goods are damaged.
4. You don’t want to be in breach of contract if you fail to deliver goods because of aforeseeablerisk/natural disaster. 
5. You want to make sure that Parole Evidence is not allowed in
6. You DO NOT want either party to be able to assign any aspect of this agreement.
7. You want to make sure that if you do breach the contract some maximum amount that you need to pay has been established within the contract.
8. You need to have a way to get out of this contract with 90 day notice
9. You want to prevent the other party from suing you in court.
10. You would like the contract to be governed by the laws of Manitoba
11. You want to be insured against any loss resulting any law suit brought by any customer of the other party

PART B Short Answer
1. Axis Consulting V Dbi Component Software
[1] DBi builds software components. [2] It (DBi) currently has a contract with AXIS Consulting Inc. whereby AXIS resells some of DBi’ssoftware component products. [3] The contract is up for renewal. [4] On Monday DBi presents a new contract to AXIS wherein it stipulates that the royalties paid by Axis will increase. [5] AXIS protests indicating that the new royalty percentage in too high. [6] DBI indicates that unless AXIS agrees to the new percentage there would be no new contract, further, the DBi offer will remain open until Friday of that same week.[7] On Tuesday, DBi is approached by Cranium Software, another reseller who offers to pay the higher royalty but requires Dbi to enter into an exclusive agreement with them (meaning DBi cannot enter into an agreement with any other reseller, including Axis Consulting.)[8] On that same day DBi accepts Cranium’s offer and faxes acceptance which is received by Cranium that day.
[9] On Wednesday, Axis Consulting, upon hearing that DBi has entered into another agreement, Axis Consulting faxes acceptance to DBi which is received that day.
[10] DBi replies to Axis Consulting indicating that the offer to Axis is no longer open for acceptance and that DBi has signed an exclusive agreement with another party. 
[11] Dbi is now suing arguing that the offer from DBi was open for acceptance when Axis accepted on Wednesday.
Question:
1. Who is the Plaintiff and who is the Defendant in this case? (1 mark)
The Axis Consultants are the Plaintiff here and the Defendants are the DBi.
2. What kind of offer did DBi make to Axis Consulting? (1 mark)
The DBi offer to the Axis Consultants was to increase the royalties of the products.
3. What legal argument could Axis make to support their claim that a contract exists.  (use legal language and concepts, cite paragraph numbers to support your position).
The DBi cannot accept the offer of other resellers when he already gave the time to Axis Consultants up to Friday of the same week to accept the offer ofincrease in royalties of the product. Moreover, they accepted the offer by Wednesday, it means Axis Consultants accepted the offer before the due time and by that time, DBi already signed the offer given by the Cranium Software for paying high royalties. So, it was wrong on the part of DBi that they accepted the Cranium Software offer on Tuesday because they were already in contract with the Axis Consultants before and gave them the time of Friday to accept the new demands of the contract. 
4. What legal argument could DBi make to support their claim that no contract exists with Axis Consulting?  (use legal language and concepts, cite paragraph numbers to support your position). 5 Marks
An offerorcan revoke the offer at any time before the acceptance by another party       and this rule was established in Payne v cave[1]. So, when the DBi accepted the offer of Cranium Software on Tuesday, the Axis Consultants did not accept the offer of DBi. The Axis Consultants accepted the offer of DBi on Wednesday which is one day later after the acceptance of Cranium Software offer by DBi. So, the DBi was able to accept the offer of Cranium Software and to revoke the offer given to Axis Consultants.
2. You are suing the Government over a s.91 matter.  The court is hearing this matter for the first time.
Question: 
What court would this be heard in? 

3. Agile Systems and Rockwell Development are engaged in a contractual dispute. Agile would like to submit parole evidence into court.  This evidence favoursAgile’s argument.  The court is examining the contact. 
Question: (5 marks)
What finding by the court, when reviewing the contract clauses, will have a major impact on whether the evidence is allowed in or not? 
Please briefly explain your answer using legal terms and concepts

4. TATA Consulting is in negotiation with Virginia Tech Inc. for the purchase of Virginia Tech development services.  On January 21 2020 TATA faxes an offer to Virginia Tech that contained the following information:
Hourly Rate $ 180.00 per hour USD, Services to begin April 15, 2020, Service to end August, 2020 for 800 hours for a total of $ 144,000.00. Work will be performed at TATA offices in Bangladesh, India. 
Question: (5 marks)
Do you think this s a complete offer, open to acceptance?  Why? or Why not? Briefly explain your answer. 
5. Full Stack Inc. has an existing agreement with Gooble LLC, where Full Stack Inc., is to make certain modifications to Gooble’s logistics application.  Modifications are to be completed by 2:00 pm, March 13, 2020.  Full Stack calls Gooble and indicates they will need to add an additional developer at an additional cost of $15,000.  Gooble agrees on the condition that the modifications are completed by March 12th at 2:00 pm.  Full Stack emails agreement.
Question: (3 marks)
Has this contract been varied?  Briefly explain your answer using legal terms and concepts.

6.StreamALL is a video streaming service provider.  Chorus Technologies provides hardware and software for Hi Def streaming service providers.  A few months ago StreamALL and Chorus entered a 3 year verbal/oral contract. Chorus would like to get out of the contract and is looking for some contractual defect so they can claim that no contract exists. 
The contract is characterized by the following information:
Both Party’s names and addresses
A complete verbal offer that includes product, delivery and payment information
Verbal acceptance with witnesses
The contract clearly specifies the $ price to be paid by StreamALL to Chorus and a specific list of the hardware/ software purchased by StreamALL.
The contract is not illegal
Both parties have capacity
Question: 
Can you find the defect in this contract? Explain your answer 
7.  [1] Party A makes an offer to Party B.   [2] But Party B changes a condition of the offer and sends it back to Party A for acceptance.  [3] Party A does not accept but rather makes a further change and sends back to Party B.  [4] Party B rejects the current offer but [5] accepts the previous offer from A. 

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