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Toymaker Scenario

  • Date Submitted: 12/08/2012 04:58 PM
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Big Time Toymaker Scenario

Juanita Stoddart

LAW/421

September 30, 2012



























Big Time Toymaker Scenario




      A contract is made up of three important elements; Offer, Acceptance, and Consideration. One party must make an offer in exchange for the other party to promise to do something. The other party must then accept the request of the other parties’ request. Consideration is what each party brings to the table in order to exchange. In this scenario there was a contract formed by both parties. BTT offered $25,000 for exclusive negotiation rights of Chou’s product. Chou accepted the offer and the terms they came with. They both had something the other party wanted and agreed to the exchange. All three elements of a contract where fulfilled.



      The statute of frauds requires contracts that are entered into, not only must be written but both parties that have entered the contract must have their signature so they are bound to the contract (Melvin, 2011). In this scenario, after the initial contract was formed, a couple months afterward they orally agreed on new terms. BTT sent Chou an e-mail with the new terms and obligations they must abide by. The statute of frauds was not followed in this scenario. The first mistake was to orally agree on terms without it being written down. The next mistake was that it wasn’t signed by either party.



      The doctrine of mistake is a contract that is now void because of a misunderstanding of the parties bound to the contract (Melvin, 2011). I believe that the doctrine of mistake applies to this scenario. BTT and Chou had an initial agreement, but then decided that they were going to discuss other terms and enter into a new contract. The first mistake that they made was orally coming up with a new agreement when their first contract said that they could not agree to any other terms unless they were written (they were still within the first...

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