Theory to Practice

LAW/421
January 21, 2012
Brian La Hargoue

Theory to Practice
A contract is an agreement a court of law will recognize. An agreement may result in a binding contract whether it is an oral or written agreement between parties (Melvin, 2011, p. 126). Contracts are put in place to protect both parties on either end of the agreement. A big time Toymaker (BTT) was interested in a new game invented by Chou. BTT entered into an agreement with Chou for exclusive rights to his inventory for a 90-day period at the cost of $25,000 (Melvin, 2011, p. 155). This paper will discuss some pros and cons of a contract, if and when a contract should apply to a situation, and some remedies for a breach of contract.
Contract
BTT and Chou made an exclusive negotiation agreement for a 90-day period. This agreement had stipulations that a contract had to be in writing within this period. Before the expiration of this period, the parties reached an oral agreement in a meeting followed by an e-mail from BTT to Chou repeating their oral agreement on paper. This electronic document reiterated the key terms of what was agreed upon in the meeting between the parties (Melvin, 2011, p. 155). With areas agreed upon, the parties should be considered under contract.
Positive and Negative Facts of Agreement
There are several areas in this simulation that show positive and negative facts for Chou in terms of the intent of contract.
The facts that weigh in favor of Chou:
* Meeting that was concluded with an oral agreement
* Follow-up e-mail from BTT with the key terms that were agreed upon
* Fax requesting a draft for the contract
* Time that was spent between parties acting under contract
The facts that weigh against Chou:
* The negotiation agreement stated that no contract would exist unless it was in writing
* No signatures binding the contract
* The