Contracts are essential for business and will be an integral part of Clean-N-Shine (“Clean”) operations, so the owners now want to focus on contract law. Each of the owners has experience with contracts in their 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 Clean owners know that there are various types of contract agreements relevant to their business. Clean will have individual contracts with employees, independent contractors, and other agents who will represent the company. Also,
Clean 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 unambiguous terms. Contracts must define the rights and responsibilities of the parties. Also, since employees and independent contractors will be performing cleaning services on clients’ properties, these contracts should require bonding for all employees.
You, Winnie, and Ralph presented draft contracts for Clean’s employees, including different contracts for cleaners, office managers, marketing specialists, sales representatives, and IT employees.
The Clean owners reviewed the drafts and have some questions about the contracts.
Background Facts You Need to Know: At Winnie’s and Ralph’s request, it is your responsibility to research an provide answers to the Clean owners’ questions. As an example, Winnie, Ralph, the Clean owners, and you have determined that Clean’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
• work hours
• terms of payment for overtime or holiday work, if any
• sick leave
• vacation leave
• 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.
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.
Report You Need to Prepare: To begin developing a contract between Clean and its cleaning clients, prepare a report that addresses the following (note that this is for a contract with Cleans clients and not Clean’s employees).
- Identify five contract terms and conditions – other than price – that should be included in the Clean contract with its cleaning clients.
- Analyze and briefly discuss why each term is important to include in a Clean-client cleaning contract.