Chapter 2 CONTRACTS

Contract Elements
- offer
- acceptance accept reject counteroffer nothing
- consideration price of the promise salary in exchange for work
- legal purpose illegal = void illegal per se – adhesion, unconscionable, one-sided
- capacity to contract competency, appreciation of entrance into contract minority – disaffirm before 18 (letter of intent/scholarship?) restitution co-signature of parent Coogan’s law (15% of child actor’s money) in California Fraud, duress, mutual mistake
- valid, void, voidable
- statute of fraud over one year – needs to be in writing
- implied and express implied – quasi (justifiably relied on another’s promise) express – formally expressed in writing
- addendum supplemental agreement to SPK – incentives and bonuses
- collective bargaining agreement terms of employment btw union and employer – mandatory topics include minimum wages, permitted hours, working conditions; uniform players contracts are nearly uniform in the Big Four
- standard player contract professional services – non assignable boilerplate as a result of CBA negotiable issues – term, salary, bonuses
- endorsement contracts increase sales or market share of products by featuring athlete in advertising campaign. Grants sponsor the right of use of athletes name, image or likeness. No formalized parameters
- appearance contracts compensate athletes for appearing at events
- guaranteed contracts paid full amount of contract for specified period of time, regardless of whether injured or cut from team. MLB NFL NBA only occasionally
- NBA Ten day contract – 10 days or 3 games 9 whichever comes last Limit 2 in one season – must sign for rest of season
-NHL
two way - paid more in NHL than AHL one way – paid same amount whether in AHL or NHL
- reserve clause club retained rights even at the expiration of contract unless traded or released at teams option. Players signed contracts that bound them to their teams PERMENANTLY. It reduced players bargaining power and restricted salaries and gave owners power. Was in every MLB contract starting in 1880s reserve clause and system no longer in Big Four
- termination clause at-will v. term contract – completion, mutual consent/recission, breach cause – employers reserve right to terminate in order to protect image from misconduct by employees. Defining cause important but difficult. Often receives a settlement Kelvin Sampson – paid $750k to leave Indiana Univ “just cause” defined in 14 subsections
- Bruce Pearl UT bball coach lied to NCAA over recruiting violations terminated contract but did not get fired
- Jim Tressel knew players violated NCAA rules
NCAA sent Notice of Allegations – repeat offender and “failed to deport himself in accordance with honesty and integrity…”
Resigned
- Ron Prince secret agreement with former athletic director - $3.2 million if terminated before end of 2008
- hazardous activity clause mitigate changes of injury outside of scope of game modify financial obligations if player injured as a result of involvement in hazardous activity – NBA SPK substantial risk of bodily injury… riding a motorbike or moped”
- morals clause SPK (standard players contracts with individual teams
Conduct that doesn’t conform to standards of morality and fair play… laws, or that is prejudicial or detrimental to Association” very subjective lost jobs/ endorsements – Pitino, Tiger, Vick, Phelps reverse morals clause – Enron
- loyalty clause use or wear particular brand of product – MJ v. DeAngelo Hall not bad-mouth league or team (Carl Pickens Clauses – bad mouth Bengals)
- force majeure clause addresses contractual obligations when a triggering event inhibits the fulfillment of duties of one or both parties (weather, work stoppages, bee swarms, other acts of God) Ex. Katrina, NHL transportation
- best efforts clause mandates general good faith