Case Scenario- Law/421

792 Words4 Pages
Case Scenario- Big Time Toymaker In chapter six of the text the case scenario of the Big Time Toymaker (BTT) is one that is really a case of very complex misunderstanding. This case puts in meaning the very importance of having an actual written contract that all parties agree upon in order to make sure business runs smoothly. Even though the Big Time Toymaker and Chou had a verbal agreement that they were going to work together for a 90-day period, there was no written contract ever drawn up; therefore the two never legally had a contract agreement to abide by. Because BTT had a change in management after the faxed contract from Chou was sent over, it is hard to say whether or not Chou and BTT truly entered a contract in the end; it would seem that anything could have happened to that fax, and because of the change in management it very well may never have been received by BTT. If BTT did receive the contract before the change in management, it may be that legally they are under a contract and may be forced to abide by the terms of the contract. Due to the fact that the original agreement was made via email it may be that BTT is liable to abide by the contract simply because there technically is a typed out direction of agreement from BTT stating what their intentions are in working with Chou. If the legal system sees this as an actual contract, it may be that this is binding enough to keep the business running. In this particular scenario the statute of frauds could possibly play a big role in this contract. The statute of frauds would play a role, because possibly the emails sent by the BTT company could possibly be evidence enough of a “verbal” contract to put them in breach of contract with the Chou company. However, according to the doctrine of mistake BTT could possibly avoid the contract due to misunderstanding in the process of a management

More about Case Scenario- Law/421

Open Document