week 4 law paper2 - Big Time Toymaker Deal By Christopher M...

This preview shows page 1 - 3 out of 5 pages.

Big Time Toymaker Deal By Christopher M. Benco October 20, 2014 Law/ 421
BTT granted Chou an option to enter a contract, known as the option contract. BTT would pay Chou $25K to keep an offer open for the exclusive rights to his board game for a 90- day period. As a result, Big Time Toymakers purchased the right to negotiate a distribution agreement in regards to Chou’s board game. The arrangement specifies that at the end of the 90- day period, if both parties cannot come to an agreement on a distribution deal, then Chou would be free to enter into a contract with another distribution company as well as keep the $25K that was given to him. This is a valid oral contract between BTT and Chou. It is to my belief that both parties had a distribution agreement contract with each other. The negotiation contract specifies that “no distribution contract exists unless it was in writing” (Melvin, 2011). They came to an oral agreement a few days before the 90-day deadline. Shortly after the meeting the Big Time Toymakers management sent Chou an e-mail repeating the oral agreement in regards to price ranges, allotted time, as well as obligations of both parties (Melvin, 2011). Nevertheless, there was no evidence to show that Chou accepted the offer by ways of e-

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture