This preview shows page 1. Sign up to view the full content.
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...
View Full Document
- Spring '10
- Business Law