Law 421 Essay

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LAW 421 Individual Assignment: Case Scenario: Big Time Toymaker Tonia A. Cutchin, MBA, JD The definition of a contract is “a promise or a set of promises enforceable by law,” (Melvin, 2011, p. 126). An agreement is a result of binding a contract whether it be oral or written between parties (Melvin, 2011, p. 126). BTT (Big Time Toymaker) is a toy company who is interested in a strategy for a new game that was invented by Chou. BTT agreed with Chou for rights, exclusive, to the inventory for a time span of 90 days and for the cost of $25,000 (Melvin, 2011, p. 155). The contract was an exclusive contract. It started with BTT was interested in distributing Strat, and the agreement was with Chou and BTT on an exclusive negotiation rights for 90 days. With this exclusive there was a $25,000 exchange. The stipulations of this negotiation was that there be no distribution contract existed unless it was in writing. Before the expiration period, the parties had reached an oral agreement. The pros and cons of this simulation that gives facts for Chou regarding the terms of the contract. The some of the pros being: a follow up email from BTT with the key terms that were agreed upon; requesting a fax draft for the contact; time spent between both parties acting under contract. The cons being: negotiation agreement stated that no contract would exist unless in writing; no signatures binding the contact; the word “contract” was nowhere on the email Chou received from BTT; Chou didn’t draft the agreement until several months later when asked upon by BTT (Melvin, 2011, p.155) Electronic communications can be just effective as paper communication. This email shows an agreement by both parties on the terms of distribution agreement made in their meeting. Although the word “contract” was not mentioned in the e-mail, it still shows a strong simulation that there

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