Big Time Toymaker

Big Time Toymaker Scenario

Rich Wright

LAW/421

November 26, 2012

Tim Morris

Big Time Toymaker Scenario

1) At what point, if ever, did the parties have a contract?

In evaluating the Big Time Toymaker (BTT) and Chou scenario, I believe that a contract does in fact exist between Chou and BTT. While it is not stated in the scenario whether a meeting was held via telephone or face to face, it is obvious that one was held and an agreement was made that BTT would pay Chou $25,000 for the exclusive negotiation rights for a ninety day period. Before the ninety day period expired, an email was sent by BTT to Chou confirming the key terms of the agreement reached during the meeting.

2) What factors may weigh in favor of or against Chou in terms of the parties’ objective intent to contract? The facts in favor of Chou would be that an oral agreement was made and an email was received from BTT stating the key terms of the oral agreement. The facts against Chou would be that there was never a written contract drafted by Chou. The fact that Chou entered into an exclusive negotiation rights agreement for ninety days which stated that no contract exists unless it is in writing. Another fact against Chou is that a written agreement was not turned in within the original ninety day period that was stipulated in the exclusive negotiation rights.

3) Does the fact that the parties were communicating by email have any impact on your analysis in Question 1 and 2?

I believe that the email represents the acknowledgement by both parties of the distribution agreement by stating the key terms such as price, time frames, and obligations of both parties even though the email did not use the word “contract”. I feel that the email does have an impact on my analysis simply because it is from BTT to...