Big Time Toymaker Essay

1174 Words Jul 13th, 2014 5 Pages
Big Time Toymaker The following case scenario is concerning the existence of a valid contract between two parties. A valid contract can be verbal and/or written. The contract becomes valid when there has been a promise, an acceptance, and consideration relating to the terms and conditions of the agreement. A breach of contract can take place if one of the parties does not comply with the terms of the contract. If this happens, the non-breaching party may be awarded remedies to recover any losses or damages. “The Law provides certain relief for aggrieved parties that suffer losses as a result of another party’s breach of contract. These relief mechanisms are collectively referred to as remedies. For many contracts, the …show more content…
1. At what point, if ever, did the parties have a contract?
In the original negotiations, the agreement had stated that “no distribution contract existed unless it was in writing” (Melvin, 2011). BTT had sent an email to Chou stating all of the terms and conditions of their distribution agreement. They also had ask Chou to write up the draft agreement and fax it to them. According to our text, an enforceable contract must have mutual assent between the parties involved (Melvin, 2011). Mutual assent means that there is an offer and acceptance from all parties involved. The email that was sent to Chou clearly stated the offer and acceptance that had previously been agreed upon.
2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract?
One fact that would weigh in favor of Chou is that there was a verbal agreement and a written email from BTT outlining the terms of the agreement and a request for a draft of the distribution agreement contract to be presented to them by fax. Chou did that. Also, BTT had already formed an agreement with Chou for 90 days of exclusive negotiation rights and paid consideration of $25K. “The law requires only that the parties’ acts or words lead the other party to reasonably believe (objective standard) that an agreement has been reached (Melvin,

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