Assignment: Negotiating and Building a Term Sheet

Ajeena Khadka
Benjamin Talag
Milan Bajgain,
Paola Andrea Mendez Mejia
Saurav Chand,

SCM850 ZSS International Business LAz

Professor Shelly Ann Murphy

Supply Chain Management and Logistics

Seneca College
March 17th, 2023

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PART A – Term Sheet (20 marks)
ASSIGNMENT TEMPLATE

Date: March 17, 2023

Names of group members: Ajeena Khadka, Saurav Chand, Milan Bajgain, Benjamin Talag, Paola
Andrea Mendez

Roles:
Pair A – Executive of Mobile Transport Toronto Ltd.: Ajeena Khadka, Saurav Chand, and Milan
Bajgain
Pair B – Executive of E-bike Services Amsterdam Ltd.: Benjamin Talag, and Paola Andrea
Mendez

You are only required to focus on terms or provisions, an example has been provided below.

Contract Terms/Clauses

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Name of Contract Term or Clause:
DETAILS of how the term will operate in
the contract (use simple English as you
would want it reflected in the contract) (1
mark): A confirmed delivery date is essential, as Mobile
Transport Toronto intend to have all bikes
delivered before the start of summer 2024. This
Reason why the term is important to will also allow the company enough time to get
include (1 mark): the market prepared and get their local systems
ready.
1. Name of Contract Term or Clause:
DETAILS of how the term will operate in
the contract (use simple English as you
would want it reflected in the contract) (1
mark):
Reason why the term is important to
include (1 mark):
2. Name of Contract Term or Clause:
DETAILS of how the term will
operate in the contract (use simple
English as you would want it
reflected in the contract) (1 mark):
Reason why the term is important to
include (1 mark):
3. Name of Contract Term or Clause:
DETAILS of how the term will
operate in the contract (use simple
English as you would want it
reflected in the contract) (1 mark):
Reason why the term is important to
include (1 mark):
4. Name of Contract Term or Clause:
DETAILS of how the term will
Delivery Date
E-Bike Services Amsterdam will deliver goods by
no later than June 1, 2024.
Payment terms:
Mobile Transport will pay E-bike Services the
sum of $10,000,000 CAD in three installments:
 $3,500,000 CAD upon the delivery of the
first 2,000 bicycles
 $3,500,000 CAD upon the delivery of the
second 2,500 bicycles
 $3,000,000 CAD upon the delivery of the
final 2,500 bicycles
The payments will be made in Canadian dollars
via bank wire transfer to E-bike Services
Amsterdam's bank account, as specified by E-
bike Services Amsterdam in writing.
A payment term is important for the seller
internal management. Settling a payment term
assure that both companies understand when
and how are the payments done.
Language of the Bikes:
E-bike Services Amsterdam Ltd. will ensure that
all bicycles supplied to Mobile Transport Toronto
Ltd. will be equipped with the necessary
language features to comply with local laws and
regulations. The bikes will be equipped with
English and French language instructions and
warning labels. E-bike Services Amsterdam Ltd.
will also provide Mobile Transport Toronto Ltd.
with a user manual in English and French.
The bikes should accomplish with local
regulations regarding language requirements.
Confidentiality:
Both parties agree to keep confidential all
information relating to this contract and not to
disclose it to any third party without the prior
written consent of the other party.
To assure that both companies feel safe and with
legal protection in all the purchasing.
Warranty:
E-bike Services Amsterdam Ltd. will cover any
PART B – Reflections (5 marks for each pair)

Each pair must answer the following questions (in 100-200 words per item):

While your memory is still fresh, think about and make notes about this negotiation exercise, i.e.
think about the different components it took to prepare and complete this exercise, example,
research, knowledge of business industry; legal business structure; preparation sheet for your own
company. Complete the following questions as part of your post-negotiation evaluation, consider
each question carefully and provide answers with detailed analysis and conclusion:

Pair A – Executive of Mobile Transport Toronto Ltd.: ________________________________

1. How well were the two companies able to communicate and agree on the terms to
include in the term sheet (explain one positive and a negative)? (2 marks)

1. The two companies were able to communicate and agree on the terms to include in the term
sheet well. A positive was that both parties were able to come to an agreement on the terms without
too much difficulty. A negative was that the negotiations took a longer time than expected due to the
complexity of the terms.

2. What were 3 things you learned about international business and international law
that you found useful during negotiations? (3 marks)

2. Three things learned about international business and international law were:
(1) the importance of understanding the local regulations and laws of the country that the business
is operating in;
(2) the need to be aware of currency exchange rates and the impact they can have on the cost of
goods; and
(3) the need to consider the cultural differences between the two countries when negotiating a
contract.

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Pair B – Executive of E-bike Services Amsterdam Ltd.: _______________________________

1. How well were the two companies able to communicate and agree on the terms to
include in the term sheet (explain one positive and a negative)? (2 marks)

2. What were 3 things you learned about international business and international law
that you found useful during negotiations? (3 marks)