Law 421 Week 4

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Case Scenario: Big Time Toymaker Jennifer Ferrante LAW/421 – Contemporary Business Law Date August 18, 2013 Instructor Name Jane Schneider Case Scenario: Big Time Toymaker In week four’s theory practice, we reviewed the case scenario of Big Time Toymaker vs Chou in regards to determining the validity of a contract. As we’ve reviewed, an agreement or mutual assent is of course essential to a valid contract but the law imputes to a person an intention corresponding to the reasonable meaning of his words and acts. If his words and acts, judged by a reasonable standard, manifest an intention to agree, it is immaterial what may be the real but unexpressed state of his mind (Melvin, 2010). According to the theory practice, the…show more content…
The other defense is that the new manager arrived after the contract period ended. For arguments sake, even if the email constituted an agreement and both parties responded, there are many factors that support the defense. The main argument could be that there were no follow up questions regarding what had been documented in the email. Chou offered after the email was sent out to draft and memorializes the agreement, which he later faxed before the 90-day deadline. We live in a digital environment where electronic signatures are now valid forms of authorization and agreements. Therefore, not only is the digital responses considered valid, but money exchanging hands between both parties further substantiates the agreement and understanding between mutual parties. In conclusion, Big Time Toymaker entered into an implied contract because of their actions of requesting the draft of distribution agreement. In addition, they provided funding for the exclusive negotiation agreement. They also followed up with an email stating all terms have been agreed upon. Because of these elements in motion, it makes it a valid contract as both parties acknowledged the terms without them being officialized through contract and signatures. References: Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY:

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