I’m working on a Business Law exercise and need support.
Note: Study Guide attached
Determine whether certain contract remedies exist in the following scenario:
Forrest Gump is a famous table tennis player. He enters into a contractwith Alabama Sports Marketing to advertise the latest ping pong game and toserve as the computer-generated imagery (CGI) model for the development of thevideo game. Gump is perfect for this job as there are not many world famousping pong players who have a following similar to his. The game is set tostart development on March 1 and will be completed on July 31, so the game canbe released at Thanksgiving—a major video game release period. Both partieshave agreed and stipulated to the fact that the game must be completed on timeto maximize the profits.
Gump will make 20% of the net proceeds from thesales of the game. In addition, the contract has a liquidated damages clausethat indicates that if Gump does not participate in the marketing, does notserve as the CGI model, or breaches the contract in any way, he will oweAlabama Sports Marketing $2 million.
Based on this fact pattern and the information presented in this unit,answer the following questions in a minimum of 250 words each.
- One day, Gump gets into an argument with the developer. Gump refuses toperform any work until the problem is solved. In this situation, can AlabamaSports Marketing seek specific performance of the contract? If yes, why? If no, why not?
- How would the court determine whether the liquidated damages clause isvalid? Is this clause valid? Explain your answers.
Cite any direct quotes or paraphrased material from outside sources. Use APAformat.