Big Time Toymaker Essay

975 WordsOct 1, 20134 Pages
Big Time Toymaker Freeman L. Stephens LAW/421 September 18, 2012 Rachel A. Compton E-mail has provided business yet with another method for forming contracts, whereas the method is different, the rules for formation have not changed. The same laws apply when contracts formed in business office govern the formation of contracts. The four elements of contract formation must be present. There must be an offer, acceptance, intention, and consideration. Offer communicates the willingness of the offer or to come into an arrangement between two or more persons or entities. An acceptance is the proposal of the person to limited time of the offer. Objective standards determine if an agreement of both parties are established. Intention two parties must agree to enter into a contract legally. Consideration is the price paid to the other party of a binding agreement. Furthermore, did e-mail have any impact on the oral distribution reached between Big Time Toymaker (BTT) and Chou, were there ever a legal contract established between BTT and Chou? Contract Establishment BTT and Chou reached an oral distribution agreement at a business meeting. BTT manager sent Chou an e-mail and repeated the terms of the distribution agreement. The e-mail never mentioned the word “contract,” it did not have too because the four elements of contract formation were not present. The exclusive negotiation agreement stipulated that no distribution contract will exist unless it was in writing. Because of this clause no contract could be established unless in writing. What Facts may Weight in Favor of or against Chou The following facts may weight against Chou in terms of the parties objective intent to contract. The exclusive negotiation agreement stipulated that no distribution contract existed unless it was in writing. It took 87 days to reach an oral agreement. The e-mail sent by BTT

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