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SITXMGT002 -Develop And Negotiate Business Contract

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  • Course Code: SITXMGT002
  • University: Victoria University
  • Country: Australia


Part I: Business relationship and contract proposal (Report)

Select an organisation that you are familiar with to determine what business partners your organisation needs to establish and conduct relationships with to sustain business.

Select two business partners from the list below to draft contract proposal (one for each) for a product/service that is required for your organisational operation. Business partners may include the following:

cooperative partner with organisation



Part I: Business relationship and contract proposal (Report)

Proposal 1

Name of the Parties 


Company name: Australian Chemicals Group

Address: 52-54 Punari St, Currajong QLD 4812


Contact: 0747798669/ 0774775163


Business name: Australian excellence polytechnic

Address: 60-47 Melbourne, Australia


Contact: 0748759265/ 0745896852

Contact Person and Details

Company: Australian Chemicals Group

Name: Mr. Olsen harry Allen

Position: Supply chain manager

Contact: 0747895352

Australian excellence polytechnic

Name: Erica Daniels Hissy

Position: Chief procurement officer

Contact: 0745987123

Contract Start and End Date 

The supplier will begin supplying cleaning products from 10/3/2019. In addition, the supplier will provide additional cleaning services and products every end- month for a duration of 7 months. The contract shall terminate on 31/12/2019 with options of renewal depending on performances and management plans.

Contract brief

The contract will be between Mr. Olsen harry (supply chain manager) from Australian Chemicals Group and Erica Daniels (chief procurement manager) from Australian excellence polytechnic. Mr. Olsen Harry engages in the contract of supplying detergent agents, chemicals and cleaning services to Australian excellence polytechnic.

The Supplier’s products and services include the following:-

  • Paper products ( Toilet tissues, dispensers, facial towels and hand towels)
  • Cleaning chemicals ( Floorcare, bathrooms, laundry, kitchen, housekeeping and rapid clean support material)
  • Cleaning machines ( dry vacuums and backpacks)
  • Cleaning accessories ( floor squirters, floor pads, brooms, buckets, bin, bin liners, dusters, brush wear, auto care, carts)
  • Personal care ( body wash, hand sanitizer, soap dispenser, sunscreens, dishwashing sachets, non-slip tapes, protective clothing)
Payment Terms 

Payment for $30,000 shall be paid to the supplier monthly basis. The payment shall be scheduled one day after the products are delivered, inspection of the products are done and cleaning services are completed. The acceptable method of payment include deposits, credit cards and pre-payments.

Obligations (of both the parties)


  • Provide the services to Australian polytechnic excellence in accordance with relevant service levels, relevant policies notified form the company from time to time, reasonable care, skills, and good industry practice.
  • Supplier shall also provide service in accordance with business process Descriptions and framework service description.
  • The supplier is also obliged to provide timely supplies of product and service upon which delays may lead to penalties.
  • Supplier shall deliver products and services of high standards in accordance with the terms of the agreement and appropriate client instruction.


  • The client shall provide the supplier with accurate and complete information as requested by the supplier from time to time. Any failure or delay to provide information will automatically relieve the supplier from its obligation of performing tasks.
  • The client shall inspect goods and services upon delivery to determine if their quality is in accordance with the agreements.
  • The client shall provide payments not exceed the payment deadline and should be of the agreed amount.
Special Conditions 


        -code of practice

        - License for supplying goods and products


  • Business permit
  • Business registration number


  • Standardized services and products
  • WHS adherence
  • Timely deliveries
  • Timely rewards and compensation
  • Public liability


  • Parties should not unintentional or intentional disclose any confidential information to any unauthorized third party.
  • Confidential information regarding the contract includes financial information, growth opportunities, investment opportunities, trade secrets, marketing strategies and other affairs of business or agreement. 



  • Supplier shall warrant that services and products supplied under the company will be free from defects for the warranty period.
  • Supplier shall warrant process and deliver products and services in accordance with the agreements.


  • Client shall warrant that the agreement has authorized by corporate and other authorities that constitute the valid and binding obligation of the client.
  • Client shall warrant all requisite authority and power to deliver and execute the agreement and to perform its obligation.
Exclusion clause 


       -Indemnity Clause

       -the statute of the Limitation clause


Forum clause or choice of law.

Arbitration/Dispute Resolution

  • All arising claims relating to the agreement shall be solved by a corporate or court of competent jurisdiction.
  • Any dispute arising in connection to the agreement including questions regarding termination, validity, existence shall be referred and solved by arbitration under corporate rules.

Cancellation/Termination (due to a breach of contract)

Either party can terminate the contract by supplying a termination notice on a particular date to another party within thirty days prior to the stated date of termination.

Dated and Signatures of Authorized personnel

The contract contains the agreement of both parties and no other conditions or promises either written or oral concerning the contract subject matter. Therefore, the contract supersedes any oral or written agreement between the two parties.

In witness whereof, the parties hereto have contract clause be executed by representative authorized as of 8/3/2018

Supplier: Mr. Olsen harry Signature _____________________                  Date _________________

Business representative: Erica Daniels Signature _________________ Date ________________

Proposal 2

Name of the Parties and details of contact person

Customer or client

Customer name: Neves Neres

Address: 1, 62-72 mark Street North Melbourne, VIC, 3105

Contact: 1300660699



Business name: North pier Hotel

Address: 60-47 Melbourne, Australia


Contact: 0748759265/ 0745896852

Contact person: Cahill Paredes

Opposition: Hotel’s operational manager

Contract Start and End Date

The contract between the customer and the Hotel’s ‘operational manager shall commence as from 2/5/2019 and end at 31/12/2019. The contract shall last for one year with the possibility of renewal depending on performance. The contract shall also be terminated on 1/5/2020. 


Contract brief

The contract shall be between Neves Neres (Hotel’s loyal and frequent customer) and Cahill parades (Hotel’s operational manager). The Hotel shall offer various services to the customer upon which the payments will be processed monthly. The services that the customer will offer to the hotel include timely payments, monthly or annual subscriptions of diverse services or product and the frequent revisit of hotel facilities. The services that the hotel shall offer to the customer include -:

  • Serving food and beverages to the customer and his family or friends.
  • Coeliac catering (customer to order it in advance)
  • Fruit basket (the customers to order in advance)
  • Fitness gyms
  • Laundry services
  • Spa packages
  • Services of the game room, childcare and babysitting.
  • Access to the library
  • Free PC and internet to the lobby
  • Free access to board games.
  • Parking space (the customer to order in advance)

Payment Terms 

The customer shall pay the Hotel for products and service on a monthly basis. In addition, the hotel shall also provide discounts and bonuses to the customer. The Customer shall first deposit $500 for commitment and engagement upon which the funds will be refundable after the contract termination of the contract.  The acceptable payment terms include deposits, installments and pre-payments.

Obligations (of both the parties)


  • The Customer shall be liable for his expenses and other costs occurred beyond the subscribed services.
  • Only approved family members and friends will be allowed to access subscribed services
  • If a situation arises that the customer fails to honor payment agreements, the hotel shall have a right to cease the contract without breaching of pending payments or resolution of the dispute.


  • The hotel shall ensure all subscribe services by the customers are readily available and accessible.
  • The hotel shall provide additional food and beverages menu upon request in a situation where the products and services are not provided by the hotel.
  • The Hotel shall be liable for the health and safety of the customer when on the premises. The security also involves taking care of the customer’s belongings.

Special Conditions 


  - Identification card (ID)

  -Hotel’s subscription card

-   Membership card


  • Business permit
  • Code of conduct
  • Business registration number


  • Employee’s rewards and compensation
  • Conductive working environment.
  • Public liability


  • The business confidential information shall remain under disclosing party ownership.
  • After termination of the contract, the parties shall return all confidential information including documents, copies, files and letter to their concerns authorities.
  • Mutual agreement by the business partners that any unauthorized disclosure whether unintentional or intentional of confidential information may be detrimental to North Pier hotel
  • The mutual understanding that any discourse of confidential information will automatically lead to legal actions.


  • The Hotel shall warrant that the customer will be adequately insured for injuries and any other loss occurred in the during the contract and when accessing the company’s facilities

Exclusion clause 

- Liquidation clause (non-bleaching party to recover the damages)

Arbitration/Dispute Resolution

  • All arising claims relating to the agreement shall be solved by the company or reported and according to the law of contracts

Cancellation/Termination (due to a breach of contract)

Both parties hold a right to terminate the contract. If the customer is unsatisfied with services offered by the contractor, he can terminate the contract through a notice. On the other hand, if the hotel wants to terminate the customer’s client, it will also provide notification within 30 days. Any party terminating the contractor will pay another party a particular discount. 


Dated and Signatures of Authorized personnel

In witness whereof, the parties hereto have contract clause be executed by representative authorized as of 8/3/2018

Neves Neres                                    Signature ________________Date _________________

Cahill Paredes:                                Signature _________________Date ________________

Reflection report on how to conduct and maintain business relationships with partners

I selected the two business partners because of their mutual working relationship, experience in the market and previous performance records. In addition, the business partners provide labor cost saving as compared to other contractors and suppliers. Collaborating with the business partners will be beneficial for the company as it enhances the product, controls quality, provision of Just-in-time delivery systems and consolidation of the supply chain. The partners will provide products that are ISO certified and provide assurance that their businesses are able to consistently deliver products of high qualities. The services and products are enhanced as the partners have well-developed expertise that can leverage the business functionality. The partners provide Just-in-time delivery systems that ensure that the products are supplied at the right time and are readily available when required.

The organization requires permits, contract agreement forms and licenses from the partners for the establishment of effective business relationships. The requirements ensure the partners are competent and authorized by concern regulation bodies to carry out their operations. Furthermore, it is through these requirements that the partners proof their degree of commitment.  Other existing requirements include trust and mutual respect.

Effective Communication skills are required in order to build and nurture a mutual relationship with the business partners. Listening skills especially active listening is the most important skills required. Through active listening improves the ability to deeply understanding the business partners. In addition, the active listening skills improve the ability of partners to pay attention, withhold judgments, clarify on disputes and other concerns, monitor of partner’s emotions and information and provision of a solution. Questioning techniques are also necessary as rhetorical and open questions can be useful in the provision of detailed information. Other communication skills and techniques include presentation skills, ability to give feedbacks, personal skills like confidence and self-esteem, written skills, verbal and non-verbal communication skills. 


I will proactively take up opportunities to maintain contact, review and provide feedback to the business partner by enhancing informal social occasions like parties, get-togethers and business events. Through the information occasions, I would able to make new contacts, cement existing contacts and learn new information. In order to effectively utilize the opportunities, I will make an effort of attending forums and have a desire to network. Having a schedule or a program of regular telephone contact can also maintain contact, review and provide feedback. The telephone helps to appreciate the business partners and provides two-way communication.

My recommendation ways of taking ownership to honor the agreement with agreed KPIs of the contracts signed with business partners include adherence of terms and condition by both parties, maintaining confidentiality and making sure business partners are still bound by their obligations.

I would suggest the organization consult through a notice, telephones conversation or emails. If I think the contract agreements are bleached or biased toward one party, I will also consider scheduling a meeting. Upon an agreement by the concerned parties and make changes to the agreement, I will then email other stakeholders informing them of contract amendments


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