Ls311 Bus Law Unit 5 Assignment

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LS311 Business Law I Unit 5 Assignment Prof: Myra Navarro December 07, 2011 Breach of Contract According to the story on Huffington Post Charlize Theron has settled a $20 million breach of contract lawsuit against her, according to papers filed in November 2008 at the Manhattan Federal Court. In the original filing of Swiss watchmaker, Raymond Weil claimed that Charlize Theron had signed an endorsement deal with the company saying that from October 2005 through December 2006, the actress would only wear Weil’s high-end watches in exchange for “substantial funds" However, according to the lawsuit, Weil claimed that Charlize Theron breached her contract with the company when she was “photographed wearing a watch form the Christian Dior line at a March 2006 news conference. A photo of her wearing the watch was included in the lawsuit as an exhibit. Allegedly the contract was breached during a press event in 2006 when Charlize Theron was wearing a Christian Dior watch even though the agreement clearly prohibits Theron from appearing in any advertisement for any jewelry, even charity. The court papers said “Plaintiffs were led to believe and had a right to believe by their agreement that Theron would not promote any jewelry or watches”. Wearing a watch of the competitor is a material breach of contract and this is called a material breach because it will enable Reimond Weil to collect damages because of the breach. Charlize Theron can claim the defense of a unilateral mistake, the defense can claim that Theron did not know that Reimond Weil were to be worn at all occasions. The defense can be weak and even if they stand, it would make the contract void between Charlize Theron and Reimond Weil and Charlize Theron would have to return the “substantial funds” that were paid out back to Reimond Weil. I would think that Reimond Weil cannot force a specific

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