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Case Scenario Essay

752 words - 3 pages

Case Scenario: Big Time Toymaker1. At what point, if ever, did the parties have a contract? It appears that early on they had an agreement in which Chou received $25,000 in exchange for exclusive negotiation rights for a 90 day period. There was also a stipulation that no distribution contract existed unless it was in writing. With three days remaining in the 90 day time period both parties reached an oral agreement concerning distribution rights of the game Strat. Chou offered to draw up the contract but was sent an email headed "Strat Deal" along with all the terms and conditions agreed upon in the oral agreement including price, time and the obligations of both parties. It appears to me that within the 90 day time frame they did reach an agreement and although it is in email form the distribution agreement agreed upon originally orally was also agreed upon in written form.2. What facts may weigh in favor of or against Chou in terms of the parties' objective intent to contract? The fact that BTT waited until three days prior to the end time of the original agreement and then choose to ignore Chou's offer to write up the agreement but correspond by email might give rise to the idea that they may not have had intention to enter into a contract but were trying to stall for the time period to expire. On the other hand the fact that there was an oral agreement which was also repeated almost exactly in the email headed "Strat Deal" could be in favor of Chou that there was an agreement made in writing concerning distribution.3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in questions 1 and 2? Absolutely. E-mail and texts have become a very common means of communication not to mention the fact is used as admissible evidence in a court of law. The fact that the email covered all the specifics of the agreement indicates to me intent to contract regardless whether they followed through with the actual documentation.4. What role does the statute of frauds play in this contract? It is hard to say exactly what role the statute of frauds plays in this situation. Although the statute of frauds requires that documents be in writing...

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