Case Scenario: Big Time Toymaker Based on the Case Scenario: Theory to Practice scenario involving Big Time Toymaker (BTT), a company that develops, manufactures, and distributes board games and other toys globally, entered into an agreement with Chou, an independent inventor of a new strategy game he name Strat, to distribute this new game. However, over more than a 90-day period, BTT reneged on the agreement and was in breach of contract stating BTT were no longer interested in distributing Chou's new strategy game. This paper examines whether BTT and Chou, in fact, have a contract, and what remedies may apply, through answering the following six questions.
At what point, if ever, did the parties have a contract? To answer this …show more content…
This clearly shows the impact of communication via e-mail on the validity of a contract regardless of how much the specifics appear to be ambiguous. This is because Chou was under the impression that the e-mail sent by BTT that stated all the terms was meant to replace his earlier notion of drafting a distribution agreement. According to All Business (2012): "If an e-mail or chain of e-mails clearly states an offer for entering into a deal with all of the material terms and the other side responds by e-mail accepting the terms, then there's a good chance that a valid contract has been formed — even though no signatures have been exchanged. (2012)"
What role does the statute of frauds play in this contract? There are certain agreements made that are required to be written that cannot be verbal are governed by the Statute of Frauds. Because e-mails had been exchanged between both parties stipulating the same subject matter, and there key terms of the distribution agreement, which included the price, time frames, and obligations of both parties stated in the e-mail; this exchange can be evidence as proof of an agreement to contract. According to Cavnett (2009): "If you make a verbal agreement and wish to avoid the problems with evidence, you can simply ask for written confirmation of the terms of your agreement. This can be done simply by writing an e-mail to the other person outlining the terms you verbally agreed on.