Case Study #1
1. Both Australia and Singapore are common law countries. Singatron and Semicontronics conclude their first round of negotiations with a Letter of Intent (LOI). If the deal falls through, will either party be bound to their commitments as detailed in the LOI? What can the parties do to limit the obligations to the terms of the LOI?
Although LOI's may resemble a contract, they are not entirely binding. If the deal falls through neither party should be bound to any commitment outlined in the LOI unless there are provisions in the LOI like a non-disclosure agreement that is specified to be binding regardless of the status of the deal. To limit the ...view middle of the document...
Will they meet these capabilities in good time?
3. How will they be delivered?
4. Will Singatron being new complicate the price per unit?
5. What does top quality mean?
6. Will Singatron provide a sample to be tested before mass production?
7. Is the pricing less than before?
8. Will the quality of the product match or surpass?
9. What is the plan of action for shipping?
10. Are there any deals for warranties?
3. Because Semicontronics's manufacturing plant in Brazil is not suitable to fulfill the Phoneson contract for computer chips, a new contract must be arranged for the transportation of computer chips from Singapore to Phoneson's assembly plant in Japan. Which of the three parties is responsible for the transportation? In addition to contractual issues such as timelines, payments and packaging, list at least two issues Singatron lawyers should consider to reduce risks associated with the transportation delays or losses when contracting a third party for transportation.
Semicontronics is responsible for the transportation unless otherwise outlined with Singatron. Two issues that should be considered is Insurance (for any breaks or damages) and Inventory (So that equipment can be accounted for)
4. What are some IP areas that can be at risk for infringement for Phoneson and Singatron if not properly mitigated?
Phoneson and Singatron can risk infringement if their products are similar, or if one company has a patent on certain technology. Patents disallow other companies from manufacturing certain types of technology.