Theory to Practice
Theory to Practice
Ashley Lorenc
LAW/421: CONTEMPORARY BUSINESS LAW
Due: 6/16/14
Instructor: Kathryn Harris
Theory to Practice
The two parties involved never had a valid written contract. In the scenario, the parties negotiated for a period of 90 days and 3 days before the deadline set in the original negotiation contract they reached a verbal distribution agreement. In the original negotiation contract, it states that there would be no distribution contract unless it was in writing. When the BTT manager sent the e-mail to Chou, he mentioned the terms of a distribution agreement, but it does not make the email a contract due to the fact that neither party signed it. Only an oral agreement was reached. Without a legally binding draft and both parties signatures no contract exists. Though the contract was in process even the details had been identified, however; it fell through the cracks because of the management change at BTT. Initially, BTT paid Chou $25,000 for exclusive negotiation rights to his board game for a 90-day period and held meetings where details were discussed and agreed upon. This lead Chou to believe they were serious about finalizing an agreement on a distribution contract. Chou received an e-mail with the details of the contract, however; nowhere on the e-mail did it note that it was in-fact a contract. Chou received a fax from BTT requesting a draft for a distribution agreement contract. Chou immediately responded and then did not hear back from BTT for several months. New management at BTT took over and made the decision to inform Chou that they are no longer interested. Since the contract was not drafted within the original 90-day period, the new management was not obligated to distribute the board game, and therefore, had every right to turn Chou away instead of honoring the oral contract. However, the statute of frauds also constitutes the e-mail as a sign document. “Case 6.3 Stevens
Ashley Lorenc
LAW/421: CONTEMPORARY BUSINESS LAW
Due: 6/16/14
Instructor: Kathryn Harris
Theory to Practice
The two parties involved never had a valid written contract. In the scenario, the parties negotiated for a period of 90 days and 3 days before the deadline set in the original negotiation contract they reached a verbal distribution agreement. In the original negotiation contract, it states that there would be no distribution contract unless it was in writing. When the BTT manager sent the e-mail to Chou, he mentioned the terms of a distribution agreement, but it does not make the email a contract due to the fact that neither party signed it. Only an oral agreement was reached. Without a legally binding draft and both parties signatures no contract exists. Though the contract was in process even the details had been identified, however; it fell through the cracks because of the management change at BTT. Initially, BTT paid Chou $25,000 for exclusive negotiation rights to his board game for a 90-day period and held meetings where details were discussed and agreed upon. This lead Chou to believe they were serious about finalizing an agreement on a distribution contract. Chou received an e-mail with the details of the contract, however; nowhere on the e-mail did it note that it was in-fact a contract. Chou received a fax from BTT requesting a draft for a distribution agreement contract. Chou immediately responded and then did not hear back from BTT for several months. New management at BTT took over and made the decision to inform Chou that they are no longer interested. Since the contract was not drafted within the original 90-day period, the new management was not obligated to distribute the board game, and therefore, had every right to turn Chou away instead of honoring the oral contract. However, the statute of frauds also constitutes the e-mail as a sign document. “Case 6.3 Stevens