Law/421 Week 4 Case Scenario: Big Time Toymaker

Case Scenario: Big Time Toymaker

1. At what point, if ever, did the parties have a contract?

Big Time Toymaker (BTT) granted Chou a binding option to enter a contract, known as an option contract. BTT (offeror) pays Chou (offeree) 25K to keep an offer open in exchange for exclusive negotiation rights for a 90-day period. Therefore, BTT purchased the rights to negotiate a distribution agreement for Chou's invention (a board game). The agreement stipulated that at the end of the 90-day period, if the parties could not come to terms on a distribution deal. Chou would be free to enter into a contract with another distribution company and keeps the 25K. This is a valid enforceable oral contract between BTT and Chou.

Upon close study, I do not...