Essay about Case Scenario: Big Time Toymaker - Law421

2091 WordsFeb 23, 20139 Pages
Case Scenario: Big Time Toymaker LAW/421 Case Scenario: Big Time Toymaker Big Time Toymaker (BTT) develops, manufactures, and distributes board games and other toys in North America, Chou is the inventor of a new strategy game he calls Strat. BTT had an interest in distributing Strat and entered into an agreement with Chou, offering him $25,000 in exchange for exclusive negotiation rights for a 90-day period. This agreement stipulated that no distribution contract existed unless it was in writing. On day 87 of the agreement, the parties held a negotiation meeting and came to an oral agreement on the terms of the distribution agreement. Chou offered to draft the written distribution agreement and send to BTT. Before Chou could draft…show more content…
186). Distribution agreements typically tend to be longer than one-year and because the initial payment to Chou by BTT was $25,000, we can conclude that this contract must be in writing. Before Chou could draft the written distribution agreement, BTT‘s manager memorialized the oral agreement restating the key terms and conditions. “Although the e-mail never used the word “contract”, it stated that the terms had been agreed upon “(Melvin, 2011, p. 155). At this point Chou believed that the e-mail constituted their agreement in writing. It was at this point Chou can argue the oral agreement became a written contract. 2. What facts may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? Several factors weigh in Chou’s favor in terms of the parties’ objective intent to contract. First is the initial agreement, BTT’s willingness to pay Chou $25,000 for exclusive rights to a 90-day period to negotiate a written distribution agreement, and his acceptance of that offer shows both parties had an objective intent to contract for the distribution of Strat. Second, the e-mail from BTT’s manager, before the expiration of the 90-day period, stating “Strat Deal” and outlining the key terms and conditions of the agreement, and BTT’s acceptance of those terms, shows BTT’s objective intent to contract. Finally BTT’s follow-up fax

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