Theory of practice
September 8, 2014
The theories of practice in a business setting agreements are made as an objective to sell or trade goods and services. Big Time Toymaker had entered into an agreement with Chou with intent to become the distribution pilot for “Strat.” Strat is a new strategy game invented by Chou. Big Time Toymaker offered to pay Chou $25,000 for exclusive negotiation rights to the strategy game for 90 days. The two parties attended a meeting to discuss the terms and agreed that there were no contracts existed unless it was in writing. Since the agreement in the meeting was a verbal agreement Chou was asked to draft the contract with the list of terms and send it to Big Time Toymaker. Just before the 90 day period was over Big Tim e Toymaker sent an email to Chou stating “Strat Deal” in reference to the new strategy board game. Chou believed the email was sufficient enough as a written contract. A month goes by and Big Time Toymaker faxed Chou asking for a draft of the contract. Chou responds by sending a copy of the intended draft. After several more months passes, Big Time Toymaker contacted Chou revoking any and all agreements that were made between the two parties. The company had a change in management that wanted to go in a different direction. Even with new management the company is still liable for the agreement that was made with Chou.
The bilateral agreement was established with the follow-up email from Big Time Toymaker detailing the name of Chou’s invention and the word deal would leave him to believe the oral contract is valid. The meeting including an oral agreement that would not seem valid since both parties agreed in order for there to be a contract it must be written. In the form of the email, this is a contract that is governed by state statutory law based on the Uniform Commercial Code (UCC); Article 2 (Melvin, 2011). Big Time Toymaker made a unilateral mistake when...