If one day Gump gets into an argument with the developer and refuses to do any work until the problem is solved, in this particular case, Alabama Sports Marketing can seek the contract’s specific performances. This is so because, where two individuals have signed a contract, every involved personnel should see that the agreements in it adhere to the latter (Trompenaars & Hampden-Turner, 2011). In cases where one individual in the contract acts in a different way against the contract, this is always considered a contract breach. It is also named breach of contract when one individual in the contract does not perform his required duties without the required legal excuse. In this particular case, Gump and Alabama Sports Marketing had an agreement that no matter what, Gump should take part in the marketing activities and help as the model of CGI. The agreement they had indicated that in cases where there was a breach of contract in any way by Gump, this could result in liquidated destructions that could make him pay. Therefore, when Gump refuses to take part in any duties after having disagreements with the developers, this kind of action can be considered as a contract breach. Alabama Sports, on the other hand, has followed the contract to the latter and therefore they can pursue enforcement from the court as Gump is breaching the contract. Alabama Sports can therefore the performance of the contract because Gump had agreed to be Computer Generated model when it came to video games and he was not respecting his end of the deal. He is expected to perform marketing activities and his refusal to corporate is not good for the business, therefore, Alabama Sports will incur some losses which can be avoided so pursuing law enforcement can be the only way out.
People Also Read
A liquidated damages clause can be described as a clause included in the contract and it gives the specifications of the damages amount that the individual breaching the contract owes the other individual who is owning up to his side of the contract (Kubaseck et al., 2016). In various cases, the clause gives a specific amount he requires and the particular formula to be used in the calculation of the amount the party owes in cases where the contract is not respected to the latter. In most cases, the courts usually impose the clauses as long as the cost demanded is considered reasonable enough as compared to what the actual cost would be in cases where the contract was not breached. In cases where the amount is given is considered not reasonable by the court, the court will therefore avoid any enforcement of the clause as this will result in the clause being regarded as a penalty clause. In this particular situation of Gump and Alabama Sports Marketing, the clause may be considered valid or not. This is because the information that has been given to us does not indicate what the estimation of sales would be if the game reached completion. It however shows that Gump would be given a net profit of 20%. When we take a look at the given information, I would agree that yes there would be an enforcement of the clause in the case where Gump refuses to play his role assigned on the contract. It is therefore advisable for Gump to think very well before he refused to respect his end of the contract.
References
Kubaseck, N., Browne, M., Herron, D., Dhooge, L., Barkacs, L. (2016). Dynamic Business Law (3 rd ed.). New York, NY: McGraw-Hill Education
Trompenaars, F., & Hampden-Turner, C. (2011). Riding the waves of culture: Understanding diversity in global business. Nicholas Brealey International.
With a student-centered approach, I create engaging and informative blog posts that tackle relevant topics for students. My content aims to equip students with the knowledge and tools they need to succeed academically and beyond.
