Unit 5 Case Analysis

Topics: Breach of contract, Contract law, Charlize Theron Pages: 2 (515 words) Published: September 13, 2011
Weil vs. Theron

Breach of Contract
Charlize Theron has settled the $20 million breach of contract lawsuit against her, according to papers filed in Manhattan Federal Court Monday. The suit was filed last year, when Swiss watchmaker Raymond Weil claimed that Theron had worn a Christian Dior watch during a press event in 2006, despite being paid "substantial funds" to exclusively wear Raymond Weil timepieces during the time in question. (Thomson, 2008) How the contract was allegedly breached?

Watch make Raymond Weil claimed Charlize Theron breached her endorsement contract by wearing a Dior watch and jewelry during an advertisement campaign. According to the contract Theron was only suppose to wear Weil’s watches during 2008, when she wore the competitions (Dior) watch. What defenses may be available to the defendant?

Charlize Theron can claim she made a mistake, she cannot be expected to understand all of her contract language. Her lawyer would have known exactly what her contract expected of her, but she might not have understood that she had to wear the watches to every publicity campaign she went to.

What remedy (or remedies) may be available to the Plaintiff? Weil has the option to void his contract with Theron based on her breach or he can ask for damages. Weil can sue Theron for damages, I’m not sure if he can get a monetary amount for sales Dior may have received while Theron was promoting their product. Had she been wearing Weil’s watches those sales may have been for his watches. Weil can also ask for rescission of contract, this means he can try and get the amount of money Theron received while she was endorsing Dior’s items. There are a number of cases very similar to this one, for example, Tiger Woods and AT & T, David Beckman and Pepsi-Cola, but the case between Weil and Theron is a material breach of contract. Theron could have made a unilateral mistake; she may not have understood all of the language in her...

References: Miller, R. L., & Jentz, G. A. (2008). Fundamentals of Business Law Part I MT311. Boston, MA: Cengage.
Serpe, Gina. "E Online." E! Entertainment Television. NBC Universal. Charlize 's Watch Suit Ticks Down. NBC Universal, Nov. 2008. Web. 3 Sept. 2011. .
Thomson, Katherine. "Charlize Theron Settles $20 Million Lawsuit." Breaking News and Opinion on The Huffington Post. People, [online] 04 Nov. 2008. Web. 03 Sept. 2011. .
"When Can You Sue for Breach of Contract? |Legal Services from:
AllBusiness.com." Editorial. Interstitials | Business Solutions from AllBusiness.com. All Business, 14 July 2011. Web. 03 Sept. 2011. .
Wood, D, & Bruce, K. (2009, February 9). Celebrity endorsements - the devil really is in the detail [Web log message]. Retrieved from http://www.adlawbyrequest.com/tags/breach-of-contract/
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