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Case Study: Weil V Theron

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Submitted By kelley3721
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Breach of contract is “the nonperformance of a contractual duty” (Miller & Jentz, 2010). Charlize Theron settled a $20 million breach of contract lawsuit against her, “when Swiss watchmaker Raymond Weil claimed that Theron had worn a Christian Dior watch during a press event in 2006, despite being paid ‘substantial funds’ to exclusively wear Raymond Weil timepieces during the time in question” (Pienciak, 2008). The Plaintiff, Raymond Weil, filed suit against Defendants, Charlize Theron and Denver & Delilah Films, Inc., “seeking damages for alleged breaches of an endorsement contract and for fraud” (Weil v Theron, 2008).This paper will discuss how the contract between Raymond Weil and Charlize Theron was allegedly breached; the Defendants available defenses, and the remedies available to the Plaintiffs.
Contract
Denver and Delilah Film, DDF, is owned and operated by Theron. DDF is “both a film production company and a so-called ‘loanout’ corporation. A loan-out corporation enters into agreements whereby Theron renders services of various kinds to third-parties” (Weil v Theron, 2008). In May 2005, Raymond Weil made an agreement with DDF. Raymond Weil agreed to pay “DDF three million dollars in exchange for the use of Theron's image in a world-wide print media advertising campaign for Raymond Weil's ‘Shine’ watch collection” (Weil v Theron, 2008). The agreement contained a breach of contract clause, which stated, “no party shall have the right to terminate this Agreement or sue for breach of this Agreement until it gives written notice of the alleged breach to the other party and a period of five (5) business days” (Weil v Theron, 2008).
Alleged Breach Raymond Weil sites a few instances where Theron breached the contract. The first incident happened in April 2006, when Montblanc “displayed a posted of Theron with the Montblanc necklace draped over her…...

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