Case Analysis: Determine whether certain contract remedies exist in the following scenario: Forrest Gump is a famous table tennis player. He enters into a contract with Alabama Sports Marketing to advertise the latest ping pong game and to serve as the computer-generated imagery (CGI) model for the development of the video game. Gump is perfect for this job as there are not many world famous ping pong players who have a following similar to his. The game is set to start development on March 1 and will be completed on July 31, so the game can be released at Thanksgiving—a major video game release period. Both parties have agreed and stipulated to the fact that the game must be completed on time to maximize the profits.
Gump will make 20% of the net proceeds from the sales of the game. In addition, the contract has a liquidated damages clause that indicates that if Gump does not participate in the marketing, does not serve as the CGI model, or breaches the contract in any way, he will owe Alabama Sports Marketing $2 million.
Based on this fact pattern and the information presented in this unit, answer the following questions. Your response must be at least two pages in length and utilize key legal terms in contract law.
One day, Gump gets into an argument with the developer. Gump refuses to perform any work until the problem is solved. In this situation, can Alabama Sports Marketing seek specific performance of the contract? If yes, why? If no, why not?
How would the court determine whether the liquidated damages clause is valid? Is this clause valid? Explain your answers. Evaluate the equitable and legal remedies available for breach of contract.
One source is required for your paper. Include an introduction in your paper. Adhere to APA Style when creating citations and references for this assignment. APA formatting, however, is not necessary.
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Introduction
A contract is a fundamental part of any business dealing, whether online or not. Contracts are relationships between two or more business entities that are legally binding and enforceable by law such that in case of any breach of contract, the injured entity can seek damages legally.
A breach of a contract violates such a relationship by one entity by failing to honor the terms stated in the contract. A breach of contract can happen in both an oral and a written contract and may take any form from late payment to failure to deliver on assets. In this context, the entities involved may find solutions amongst themselves or in a court of law.
A breach of contract can either be minor or material. A minor breach is where one party does not receive a good or service by the due date, whereas a material breach is where one party receives an item different from what was stipulated in the contract. Furthermore, a breach of contract can either be categorized as actual or anticipatory.in case of an actual breach, one entity fails to perform according to contract stipulation, while in anticipatory breach, a party clearly states their intention of not delivering on the contract terms.
Remedies for breach of contract
Remedies for a breach of contract are the actions taken in the event of a contract violation by one or more parties to a contract. The purpose of remedies is to compensate the non-breaching party and return them to a position they would have been in if the breach did not happen.
Types of remedies for breach of contract
Damages
Damages are money paid to the non-breach party, which may be nominal or substantial. Nominal damages are paid when the non-breach party does not suffer any loss due to the breach. Additionally, substantial damages are awarded when one party suffers a loss resulting from the other party’s breach. Moreover, damages may be compensatory or punitive, where the former is tailored to cover the non-breaching party for damages directly caused by the breach. In contrast, the latter is designed to punish the faulty party for causing the breach to prevent others from committing the same breach. Punitive damages are included together with compensatory damages but have to be decided by a court of law.
Restitution
Restitution is a remedy used to return the non-breaching party to a position they were before the contract. Here, the party who breached the contract must give back any property or monies from the other party, as stipulated in the contract. However, any lost profits that would have been yield by the contract are not included.
Rescission and Reformation
A rescission is a remedy that returns all parties to,…………………………………………………………………………………………………………………………………………………………………………………………………………………………………,………………………………………………………………………………………………………………………………………………………………………………………………………………………………… Forrest Gump is a famous table tennis player.
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