Essay about Case Scenario: Big Time Toymaker

1232 WordsJul 13, 20135 Pages
Case Scenario: Big Time Toymaker Based on the Case Scenario: Theory to Practice scenario involving Big Time Toymaker (BTT), a company that develops, manufactures, and distributes board games and other toys globally, entered into an agreement with Chou, an independent inventor of a new strategy game he name Strat, to distribute this new game. However, over more than a 90-day period, BTT reneged on the agreement and was in breach of contract stating BTT were no longer interested in distributing Chou's new strategy game. This paper examines whether BTT and Chou, in fact, have a contract, and what remedies may apply, through answering the following six questions. At what point, if ever, did the parties have a contract? To answer this…show more content…
According to Melvin (2011, p. 155), "The exclusive negotiation agreement stipulated that no distribution contract existed unless it was in writing." Also a fact that weighs in Chou's favor is that Chou has records of e-mail communication of terms of the distribution agreement made by BTT as well as Chou getting a faxed request from BTT three days before the end of the 90-day period to send a draft for a distribution agreement contract, which he immediately sent. Does the fact that the parties were communicating by e-mail have any impact on your analysis in Question 1 and 2 (above)? The fact that the parties were communicating by e-mail may have an impact regarding the validity of a contract depending on what was specified within the e-mail. According to Melvin (2012, p. 155), the "theory to practice scenario," three days before the 90-day period expired, BTT and Chou reached an oral distribution agreement. Chou offered to memorialize their agreement in a draft; however, before Chou could get a chance to draft the agreement, BTT sent Chou an e-mail that had a subject line "Strat Deal,": "That repeated the key terms of the distribution agreement including price, time frames, and obligations of both parties. Although the e-mail never used the word contract, it stated that all of the terms had been agreed upon" (2011, p. 115).

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