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BIG TIME TOY MAKER
Larry E. Linton
Law/421
October 27, 2014
Professor Rachel Lyne

BIG TIME TOY MAKER
1.) The parties have a contract the moment that Chou and Big Time Toymaker (BTT) entered the exclusive negotiation agreement. A contract is considered perfected the moment the parties reached an agreement which signifies their consent, the object of the contract and the consideration or price. It bears to stress that the first element to test whether a contract has been perfected is that there must be intention on the parties to be legally bound. The second element to test the perfection of a contract is when the parties have reached a reasonable agreement without the need for any further requirement. When these elements are present, it is deemed that a contract has been concluded (Jansen & Zimmermann, 2011, p. 633).
In this given case, when Chou agreed to grant exclusive negotiation rights for a 90-day period to BTT to distribute the new strategy game named “Strat” and after receiving $25,000 from BTT, such agreement is considered perfected. Such agreement allowed BTT to become the sole distributor of Strat by virtue of such agreement with Chou. Although the exclusive negotiation agreement stated that there can be no distribution contract between the parties unless it was reduced into writing, the parties reached an oral distribution agreement before the lapse of the 90-day period. To make a contract binding between the parties, it is not necessary for it to be concluded or evidenced in writing. It may not be subjected to a requirement as it its form, provided that such contract can may be proved by any other means (Jansen & Zimmermann, 2011, p. 633). Therefore, the contract between Chou and BTT has been perfected the moment there was meeting of the minds between the parties.
2.) Applying the objective theory of contracts in terms of the parties, it

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