Big Time Toymaker Scenario

921 Words4 Pages
Big Time Toymaker Scenario LAW/421 Big Time Toymaker Scenario In chapter six of The Legal Environment of Business: A Managerial Approach: Theory to Practice, Melvin presents the case scenario of Big Time Toymaker (BTT) and Chou the game inventor. In the scenario, Chou invents a strategy game titled Strat. The scenario follows the events as BTT and Chou negotiate the potential distribution of Strat, ending with BTT declining to distribute the game. The legal issues presented are as follows: At what point, if ever, did the parties have a contract? BTT and Chou must exhibit mutual assent to determine when a contract was reached. The contract is determined to be valid if shown that an offer was made (by BTT), and there…show more content…
In the case that the email is accepted by the courts as a written agreement, the considerations supporting this agreement are: Both parties exhibited an objective to contract in the initial agreement for exclusive negotiation rights where Chou received $25,000 in exchange for giving up his legal right to seek distribution by a third party. A verbal agreement was reached on day 87 of the 90-day exclusive negotiation. This agreement included the terms and conditions of the distribution of Strat. BTT sent an email to Chou titled “Strat Deal” restating the terms and conditions of the agreement between BTT and Chou for distribution of the game. It is reasonable for Chou to believe the email constituted a written agreement between the two parties, which he did. At the end of the scenario, BTT states that it is not interested in distributing Chou’s new strategy game, Strat. Assuming BTT and Chou have a contract, and BTT has breached the contract by not distributing the game, discuss what remedies might or might not apply. In the aforementioned scenario, the courts are likely to award remedies in the form of compensatory and consequential monetary damages. Compensatory damages are awarded to Chou for direct losses caused by BTT’s breach of contract and failure to perform as agreed. This failure to perform also results in consequential damages for indirect future

More about Big Time Toymaker Scenario

Get Access