Contract

DRAFT A CONTRACT FOR THE FOLLOWING TRANSACTION. YOU ARE TO DRAFT A FAIR, ENFORCEABLE CONTRACT, NOT TRY TO REPRESENT ONE SIDE OR THE OTHER WITH ONE SIDED TERMS. THE CONTRACT SHOULD CONTAIN THE BASICS OF THE TRANSACTION. ALL MATERIAL ITEMS TO ENABLE ENFORCEMENT OF THE CONTRACT, AND THE NORMAL REPRESENTATIONS, WARRANTIES, SECURITY PROVISIONS AND INDEMNIFICATIONS THAT SHOULD BE INCLUDED. THE CONTRACT SHOULD DELINEATE THE DOCUMENTS AND PAYMENTS THAT NEED TO BE DELIVERED AT CLOSING OF THE PURCHASE.

FACTS

MARC SCHWARTZ WANTS TO BUY PAUL TADROS`S USED LAMBOURGINI FOR 50,000$. MARC, HOWEVER, DOES NOT HAVE THE FUNDS TO BUY THE CAR OUTRIGHT AT THIS TIME. PAUL AGREES TO LEASE THE CAR TO MARC FOR A PERIOD OF THREE YEARS FOR 1,000$ A MONTH. AT ANY TIME DURING THE THIRTY- SIX MONTH PERIOD MARC CAN PURCHASE THE CAR FOR THE SUM OF REMAINING NET PRESENT VALUE OF THE REMAINING LEASE PAYMENT STREAM (AT 7%) PLUS THIRTY THOUSAND DOLLARS. THE PURCHASE PRICE MUST BE PAID AT LEAST ONE HALF IN CASH WITH THE ABILITY TO PAY THE REMAINDER WITH A NOTE PAYABLE AT 7% AMORTIZED OVER TWO YEARS.

PAUL IS UNCOMFORTABLE WITH MARC BEING ABLE TO DELEGATE HIS OBLIGATONS OR SUBLEASE THE CAR UNLESS OR UNTIL THE PURCHASE OPTION IS EXERCISED.

YOU CAN ASSUME ANY FACTS NEEDED TO COMPLETE THE CONTRACT

THERE IS BOTH A LEASE AND A CONTRACT TO SELL ELEMENT IN THE CONTRACT