Should I Draw A Contract For This Cake?

Business By notjustcake Updated 27 May 2008 , 8:48am by Mike1394

notjustcake Posted 26 May 2008 , 2:14pm
post #1 of 15

Well ym duaghter's old teacher is asking me to make her cake, but since I'm not a business do I still draw something up?
Not sure...

14 replies
SweetConfectionsChef Posted 26 May 2008 , 2:32pm
post #2 of 15

A contract will not hold up in court if you are not a legal viable business. However, the customer probably doesn't know that and it might make the transaction more formal.

notjustcake Posted 26 May 2008 , 2:40pm
post #3 of 15

Thank you for your super quick reply, I just worry more because I have read horror stories but I will travel and set up the cake myself so I would be there to make sure the cake is in the best conditions.

Mike1394 Posted 26 May 2008 , 10:51pm
post #4 of 15
Quote:
Originally Posted by SweetConfectionsChef

A contract will not hold up in court if you are not a legal viable business. However, the customer probably doesn't know that and it might make the transaction more formal.




What do you mean it won't hold up in court? That has nothing to do with if your in a legal kitchen, or not. Person A pays Person B for a service. B doesn't hold up thier end and, gets sued.

Mike

kelleym Posted 26 May 2008 , 11:29pm
post #5 of 15

It's called the clean hands doctrine (why yes, I'm a Judge Judy viewer, thank you very much. icon_wink.gif). You cannot look to a court for justice when you are involved in an illegal act, which unfortunately includes selling a cake from an unlicensed kitchen.

There was just a case this week about a woman providing unlicensed day care in her home asking JJ to enforce her contract with the parents for payment of "two weeks notice". JJ threw her case out because she was not legal and licensed.

snarkybaker Posted 27 May 2008 , 12:59am
post #6 of 15
Quote:
Originally Posted by kelleym

It's called the clean hands doctrine (why yes, I'm a Judge Judy viewer, thank you very much. icon_wink.gif). You cannot look to a court for justice when you are involved in an illegal act, which unfortunately includes selling a cake from an unlicensed kitchen.

There was just a case this week about a woman providing unlicensed day care in her home asking JJ to enforce her contract with the parents for payment of "two weeks notice". JJ threw her case out because she was not legal and licensed.




On the other hand, it provides written proof that you are engaging in an illegal activity, and she could use it to sue you if, for example, someone had an allergic reaction.

My advice is to only do business with persons you trust until you decide to become legal.

mjs4492 Posted 27 May 2008 , 1:11am
post #7 of 15

I tend to agree with txkat about doing business with people you know or by word of mouth. Friends, etc. will automatically know you don't own your own business and that you work out of your home.

ladyonzlake Posted 27 May 2008 , 1:16am
post #8 of 15

I only do contracts for wedding cakes. For other cakes I give them a receipt. I use Cake Boss but you could use Quicken or some other program. By giving them a receipt with what they are purchasing there will be no misunderstanding about the flavor, decorations, and price so regardless of being "legal" or not it just makes everything very clear for both parties.

tippyad Posted 27 May 2008 , 1:26am
post #9 of 15
Quote:
Originally Posted by notjustcake

Well ym duaghter's old teacher is asking me to make her cake, but since I'm not a business do I still draw something up?
Not sure...




Are you worried aobut payment, allergies....?

If it's payment get 1/2 down now. If it's allergies then ask what ingredients you need to stay clear of or list all your ingredients when you deliver the cake.

A contract may help like SweetConfections Chef said.

Good Luck!

SweetConfectionsChef Posted 27 May 2008 , 1:41am
post #10 of 15
Quote:
Originally Posted by Mike1394

Quote:
Originally Posted by SweetConfectionsChef

A contract will not hold up in court if you are not a legal viable business. However, the customer probably doesn't know that and it might make the transaction more formal.



What do you mean it won't hold up in court? That has nothing to do with if your in a legal kitchen, or not. Person A pays Person B for a service. B doesn't hold up thier end and, gets sued.

Mike




exactly what Kelleym said! A contract can not bind an illegal activity.

Sugar_Plum_Fairy Posted 27 May 2008 , 1:57am
post #11 of 15

One of the first lessons ever learned in my business law class (way back when): An illegal contract can not be enforced!

I just said this out loud without realizing my DH was walking by and he mentioned the clean hands doctrine that kelleym mentioned. He no longer practices law for a living, but is an attorney.

johnson6ofus Posted 27 May 2008 , 2:11am
post #12 of 15

True on the "clean hands" stuff---- but an agreement for price, flavors, time and date, etc may protect the friendship, should anything be wrong or misinterpreted.

I even use "contracts" with my sons----- just a way to agree to something that is detailed and laid out.

You may not be able to sue, or enforce it, but it may protect the friendship.

notjustcake Posted 27 May 2008 , 4:12am
post #13 of 15

wow so many different points of views I know worry more something will go wrong and more than anything I'm the one who is exposed.

I have not discussed pricing for this cake, I don't think I would.
I think I will stick to letting her pay for materials and my gas if she wants.

Sugar_Plum_Fairy Posted 27 May 2008 , 4:22am
post #14 of 15
Quote:
Originally Posted by notjustcake

wow so many different points of views I know worry more something will go wrong and more than anything I'm the one who is exposed.

I have not discussed pricing for this cake, I don't think I would.
I think I will stick to letting her pay for materials and my gas if she wants.




Good luck!

Mike1394 Posted 27 May 2008 , 8:48am
post #15 of 15

Your all right. I looked at it from the customer side. SORRY my fault.

Mike

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