Question 1: Risk Assumptions
Risk management is a critical component of in car purchases. This is because it safeguards the interest of both the car buyer and also the car seller. Risk management in car purchase transactions are thus ensured through the car purchase contract. There are several risk assumptions in the area of car purchases (PMI 369). One of the assumptions is superior car security and safety. The contract should adequately illustrate issues of car security. The second assumption entails car insurance. All vehicle purchase agreements must illustrate adequate knowledge on how insurance services will be serviced. The insurance is critical because it protects the vehicle against unforeseen events like accidents, theft and fire breakout. The contract should be signed by parties, sender and buyer, and the all the parties must receive their copies. Another risk assumption is in the area of registration of the vehicle. The government maintains a register of vehicles that operate on the roads. Thus, the buyer and the seller of the vehicle must adhere to the traffic law by processing the registration number for the vehicle. There should also be an agreement on the delivery mode on the vehicle. The delivery should be appropriate to both the buyer and the seller. The buyer can request for delivery at an appropriate venue, and also alternatively the buyer can collect the vehicle at the showroom of the supplier (James 73).
Question 2: Type of Contract
The contract type utilized is the vehicle sales agreement. The agreement illustrates the date that the car purchase transaction took place. This is important for accounting record purposes. The agreement also illustrates the parties involved in the car sale agreement. The parties are majorly two; the buyer and the seller. The parties are required to illustrate their full names and the driving license number or any appropriate identity proof. Terms and conditions are usually illustrated in any legal business transaction. Thus, terms are conditions are the critical basis of the vehicle sales agreement. The terms illustrate the vehicle description. The description has the vehicle identification number and also the model and body car. Considerations are also another critical component of the car sale conditions. The key consideration is the purchase price. The parties must agree on the price of the car, and also the payment method and procedures. Most car sellers accept down payment with later installment payments. The buyer’s responsibility is also illustrated. The responsibilities involve insurance and also tags. The insurance and tags serviced by the seller ends when the buyer acquires the car.
Question 3: Appropriateness of the Contract
This type of contract is the most effective for any transactions involving the purchasing of vehicles. This is because it meets all the legal requirements in the area of business transaction. The contract can be utilized for dispute resolution, if there is a breach scenario. The contract is legally binding, and thus it can be subjected to the state law jurisdiction and also interpretation. The contract appropriately indicates four major car details. These details are; registration number, mileage, make and model. The registration number is illustrated in the log book, and it is a legal identification number. The mileage gives the buyer an overview of the age of the vehicle and also the total distance covered. The vehicle model and make are the features that attract the interest of the buyer (David & Peter 108). It illustrates the vehicle category that the buyer wants. The contract also describes appropriate disclosures, warranties and also representations. Most vehicle sellers provide warranties for their cars sold, for a specified duration of time. The buyer is, therefore, able to receive after sales services and enquires on the progress of the vehicle. If the vehicle receives mechanical problems due to production defects, then the buyer can access repair services (Vienna 78).
Question 4: Success of Project
The type of car purchase contract enhanced the success of the project. This is because it adheres to all the project management constraints. The time constraint is adequately adhered to because it the car purchase has the date that the transaction was made. Car purchase is only a one day event. The buyer and the seller ensured that all the paper works are in place and the entire necessary test are conducted on that day. The resource constraint was also effectively catered for in the vehicle purchase agreement. The budget for the vehicle was valued at $20,000. This is also the value that was used to acquire the vehicle. The technological aspects of the contract were also effectively addressed. The security, entertainment, performance and entertainment features of the care were tested and proved to the effective. The vehicle has a track it devices that is automatic and uses GPS and GIS. Thus the location of the vehicle anywhere around the globe can be traced. This is aimed at minimizing theft and inappropriate usage. All the project phases were adequately addressed. The phases ranged from vehicle identification to vehicle, purchase, and also vehicle delivery (PMI 326).
Works Cited
Cortada, James. Business Contracts. USA: Oxford University Press. 2009. Print.
David, Hillson & Peter, Simon. Practical Project Risk Management - The ATOM Methodology. Vienna: management Concepts. 2012. Print.
The PMI. Project management Body of Knowledge (PMBOK Guide) 5th Edition. The PMI. 2013. Print.
Vienna, Craig. Acceptable Risk Processes: Lifelines and Natural Hazards. Reston, VA: ASCE, TCLEE. 2009. Print.
