Big Time Toymaker

465 Words2 Pages
1. At what point, if ever, did the parties have a contract? This case is very interesting, especially that a lawyer was not present at all times while it is a serious deal between both parties. The email sent by the BTT manager was sent as a form of contract although it did not state that in the email and in the legal terms nothing was signed or agreed upon. The verbal agreement and the email might be considered a contract in the court of law. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The fact that both parties reached a verbal agreement prior might help Chou. BTT inquired about distributing Strat and paid Chou $25,000 in exchange for exclusive negotiation rights for a 90-day period. This fact actually can play a big role against Chou. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? Electronic communication is as effective as paper communication. It is definitely considered a legal agreement which gives Chou the obligation to send some of the money back to BTT. 4. What role does the statute of frauds play in this contract? Article 2 of the UCC allows a contract to be enforced based on a picture that consists of past commercial conduct, correspondence or verbal exchange between parties and industry standards and norms. Once in court, the verbal agreement might play its role but the possible issue of fraud could be present stating that Chou was misled. 5. Could BTT avoid this contract under the doctrine of mistake? Explain. Would either party have any other defenses that would allow the contract to be avoided? BTT has in its favor “The exclusive negotiation agreement stipulated that no distribution contract existed unless it was in writing”. Chou has just three days before the 90 day period expires while both parties

More about Big Time Toymaker

Open Document