Big Time Toy Maker

Essay by shan7203University, Bachelor'sA-, June 2014

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Big Time Toy Maker


December 02, 2013

Teresa K. Anderson

Running head: BIG TIME TOY MAKER




Big Time Toy Maker

A contract is an agreement between two parties enforceable in court. To have a valid contract, there are several different elements that must be present. These elements will be explained throughout this analysis. A verbal or written agreement may result in a binding contract if the required contract criteria are met (Melvin, 2011). 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 that was 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. This paper covers advantages and disadvantages of a contract, if and when a contract should apply to particular situations, and remedies for a breach of contract.

BTT and Chou made an exclusive negotiation agreement for a 90-day period. This agreement stated that the contract had to be in writing. Before the time period expired, 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 restated the major terms of what was agreed upon in the meeting between the parties (Melvin, 2011). With all details of the agreement finalized, the BTT and Chou should be considered under contract.

There are several areas in this simulation that show positive and negative facts for Chou in terms of the intent of the contract. Some of the points that are working in Chou's favor are that the meeting ended with an oral agreement and was followed up by an e-mail from BTT restating the agreed...