Case Senario - Big Toy Maker

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Case Scenario: Big Time Toymaker 1 1. At what point, if ever, did the parties have a contract? After reading the case scenario, I found that the only actual agreement between the two parties was at the very beginning. The agreement that BTT paid $25,000 to Chou for exclusive negotiation rights ended after the 90-day period. There was no actual contract signed between the two parties. There was talk of a contract to be drafted and an email but neither was an actual contact. Since there were no signatures from both parties, there was no legally binding contract present. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The facts weigh in favor of Chou in the sense that BTT showed big interest by the initial $25,000 agreement for the negotiation rights. Next was the oral agreement that was met between the two parties. Finally, the follow-up email sent to Chou which entailed what would be included in the contract. Although there was talk about the contract, there was no contract drawn up and signed by both parties. 3. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Questions 1 and 2 (above)? 1- No, the communication by email had no impact on my analysis. The email did not contain a contract to be signed by both parties; therefore there was no legal agreement. 2- Yes & No, I could see where Chou could think the email sent by the BTT manager showed intent to contract; however, if he paid attention at the beginning he would have remembered that without a signed contract there was no agreement past the 90 days. 4. What role does the statute of frauds play in this contract? The statue of frauds in the law governing which contracts must be in writing in

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