Question

Prasert wants to manufacture a toy drone that she can sell in order to make a lot of money. However, she needs help designing the software that operates the drone. Prasert talks to her neighbor, Sandy. Prasert asks Sandy, “Can you design some cool software for me and give me a good price and get it to me as usual?” Sandy says, “Sure! I would love to design advanced software and make some money!” After waiting a lot longer than she had expected for the software, Prasert finally gets the software from Sandy. The software is very advanced, and Prasert is afraid that even many young millenials won’t know how to use it. Nevertheless, Prasert tells Sandy, “Here is the money I owe you” and writes Sandy a check. Sandy says, “This amount won’t make me any money like I wanted” and demands a lot more. In the meantime, Prasert has asked DronesRUs to sell drone parts to Prasert. Prasert has been involved with the local drone manufacturing industry for the past 20 years and has been doing a lot of business with DronesRUs. Prasert goes to DronesRUs and says to them, “Give me 100 of the usual.” DronesRUs, which is very bad with replying, says nothing to Prasert but delivers the usual 100 to Prasert 20 at a time to Prasert’s grandmother’s house between the hours of 2 and 4 a.m. on Sundays. Prasert, who has become distracted with the issue with Sandy, picks up all of the deliveries and starts putting the parts together before she realized, 2 years later, that some of the parts are not what she had wanted and don’t work properly. Discuss all legal issues, making sure to also speculate on likely outcomes of the issues

Answer 1

In the above mentioned case there are many legal issues are involved. The main issue which makes the life of Prasart aweful is the legally binding contracts.

legally binding contracts:

There are many types of legally binding contracts can be made in order to make the contract more and more strong legally. Contracts like Employment Contracts, Full and Part Time Contracts, Fixed Term Contract, Agency Staff Contract , Zero Hour Contracts etc

Fixed Term Contract

In the above case when Prasart was looking for designing a software and asked her neighbour Sandy to help her, she didn’t make any Fixed Term contract with the stipulated payment, termination clauses, rights and responsibilities of Sandy, details of the workability of the software, look and feel of the user etc. So, it ended up with a result where both the parties (Prasart and Sandy) are dissatisfied. Prasart waited for a long time as the time line of the delivery was not mentioned anywhere, Prasart found that the software will be difficult to handle because there was no clear description mention through any contract, and on the other hand Sandy didn’t get the money he expected from Prasart as there was no monitory contract also made.

Government contracts and Tax Handling

The business which was planned by Prasart was not enrolled into the government contract terms. All the business structure comes under a different tax bracket that affects how much tax the business owner pay and also what he/she can claim on tax. As the Business of Prasart was not in the government book this business can result in fines and even imprisonment, it can also crush your business.

partnership agreement Contract

As Prasart asked DronesRUs to deliver 100 parts and she didn’t pay for it, it makes the DronesRUs as a partner of Prasart and there was no exact description of the parts which were needed to make the drone Prasart ended up getting some unwanted parts which was of no use. Prasart being involved with DronesRUs for 20 years she should know the way it works and should made a clear descripetion of the parts when she requested for the parts.