BUS311_chapter_04

According to the complaint in july 1994 while iverson

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Unformatted text preview: out When a Contract Is Made Allen Iverson is one of the NBA’s all-time greats. Playing most of his career with the Philadelphia 76ers, at barely six feet tall Iverson was an 11-time all-star, and a league MVP. Although Iverson is currently in bankruptcy, he earned $154 million playing basketball—not counting commercial endorsements. The money from those endorsements, however, was the source of a lawsuit filed against Iverson by his long-time mentor and father figure, Jamil Blackmon. According to the complaint, in July 1994 (while Iverson was still playing at Georgetown University, but in an NBAstyled summer basketball league), Blackmon suggested to Iverson that he use the nickname, “The Answer,” meaning that Iverson would be the answer to all of the NBA’s woes. Iverson liked this idea and later that day he promised to give Blackmon 25 percent of all the money Iverson might eventually make from the nickname. Upon being drafted by the 76ers, Iverson renewed his promise to Blackmon, even before signing an endorsement deal with the shoe company Reebok. Iverson repeated the A friend suggested the nickname The Answer to promise about “The Answer” for years afterwards. Iverson, and later wanted While “The Answer” may have been Iverson’s nickname, the question to be compensated for Blackmon found himself repeatedly asking was “Where’s my money?” In its use. 2001, Blackmon sued Iverson for breach of contract and unjust enrichMatt Slocum/Associated Press ment. He lost, even on appeal. When looking at the nature of the alleged contract, however, we can see why. Iverson’s promise to Blackmon came after the nickname was offered, which means there was no consideration for Iverson’s promise to pay Blackmon 25 percent. And of course, past performance cannot constitute consideration for the creation of a contract. Blackmon even lost the unjust enrichment claim, which is grounded in doctrines of equity rather than pure contract law. Here, the appellate court rule...
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