Toymaker Law/421

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Read the “Theory to Practice” section at the end of Ch. 6 of the text. Answer Questions 1 through 6 based on the scenario in the “Theory to Practice” section, and complete the following in your response: •At the end of the scenario, BTT states that it is not interested in distributing Chou’s new strategy game, Strat. Assuming BTT and Chou have a contract, and BTT has breached the contract by not distributing the game, discuss what remedies might or might not apply.

At what point, if ever, did the parties have a contract?
I do not believe that the parties ever had a contract. The scenario stated that the parties reached an oral agreement 3 days before the 90-day deadline that was stipulated in the negation contract. The exclusive negotiation agreement stipulated that no distribution contract existed unless it was in writing. Although a BTT manager sent Chou an e-mail that repeated the key terms of the distribution agreement, I do not believe this counts as a contract as being in writing because there are no signatures and Chou did not agree to it after he saw the e-mail even though he agreed to it orally. No contract was ever officially drafted in writing and agreed upon by both parties (signatures). What facts may weight in favor of or against Chou in terms of the parties’ objective intent to contract? The fact that BTT paid Chou $25,000 for exclusive negotiation rights would leave Chou to believe that BTT was serious about following through with a distribution contract. This fact would weigh in Choi’s favor. Unfortunately, even though the parties had an oral agreement, no written agreement was ever drafted within the timeframe stipulated on the negotiation agreement. The parties did have seem to have an objective intent to contract, but unfortunately, when new management came in, they were not interested in distributing Strat, and since there was no written contract, I believe they were within their rights to turn Chou away. Does the fact that the parties...
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