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Case Scenario

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Case Scenario: Big Time Toymaker Jason Andrew Ross LAW/421 January 16th, 2012 Tiffany Brady Case Scenario: Big Time Toymaker 1. At what point, if ever, did the parties have a contract? After reading the case scenario, I do not believe either of the two parties involved ever established a binding distribution contract. It is true an oral distribution agreement was achieved just three days prior to the 90-day deadline, which was a condition established in the original negotiating contract. However, as clearly stated in the original negotiating contract, there is not to be a distribution agreement, or contract, unless it is in writing. After the meeting, Chou volunteered to draft the distribution contract that would …show more content…

This is according to the original negotiating contract between BTT and Chou. 5. Could BTT avoid this contract under the doctrine of mistake? Explain. Would either party have any other defenses that would allow the contract to be avoided? A mistake is defined in contract law as a belief that is not in accord with the facts. The law recognizes certain mistakes and provides a solution intended to make the parties whole again (Melvin, 2011). However, a mutual mistake may be the basis for canceling a contract (also called avoiding the contract) when both parties hold an erroneous belief. The mistake in this case focusses on assumption made by Chou. After the oral agreement was reached, Chou offered to draft a written version of the contract. During this process, Chou received an e-mail from the BTT manager who simply restated the key terms of the agreement. After receiving this e-mail, Chou mistakenly assumed the BTT manager wanted to draft the contract. This erroneous belief by Chou caused the 90-day deadline to pass without a written contract. This 90-day deadline was a binding stipulation of the original negotiating contract. 6. Assuming, arguendo, that this e-mail does constitute an agreement, what consideration supports this agreement? Assuming the e-mail between BTT and Chou does constitute an agreement, the facts from the e-mail may support this argument. The subject line of

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