Instructor:        Williams

Course:             Contract Law

Project:             Contract Project/Spring 2018

Facts

Kobe owns a consulting business, Kobe’s Basketball,Inc., but he wants to purchase and operate a restaurant.He meets a businessman name LeBron who owns a restaurant calledKing’s Pizza, LLC. He has two restaurantslocations, one in Houston and one in Cleveland. LeBron wans to sellthe one in Houston, so he can move back to Cleveland to operate hisCleveland restaurant full time. LeBron’s restaurant, King’sPizza, LLC, has a written contract with the local sportsarena to sell food during the football games played at thearena.

Kobe meets with LeBron and LeBron verbally agrees to sell Kobethe restaurant that he operates in Houston for $50,000. Kobe wantsto put about $10,000. Down and pay the balance of $40,000 over 3years. Lebron agrees to the arrangement and they sign a contractfor the sale of LeBron’s restaurant, King’s Pizza,LLC, to Kobe. The written contract shows Kobe’sBasketball, Inc. as the purchaser of LeBron’srestaurant.

Kobe meets another restaurant owner at the arena, named Jordon.Jordon operates a restaurant at the same arena center calledOver the Rim Hot rolls, LLC. Jordan had introducedKobe to LeBron. Jordan wanted to buy the business owned by LeBronbut could not raise the money.

Since, it required a license from the City of Houston, in thename of the owner of the business, to operate at the arena, Jordanand Kobe enter into a verbal agreement whereby Jordan would managethe business, King’s Pizza LLC, for Kobe for 10%of the revenue of the business, since Kobe did not have therequired license in his name. Jordan would be responsible for theday to day operations of the business, King’s Pizza,LLC, and for training Kobe on how to operate a restaurantat the arena.

Kobe needs the license from the city to operate the new businessthat he has purchased from LeBron, so he asks Jordan if he canoperate the business under Jordan’s license, until he can get hisown license. Jordan verbally agrees to the arrangement. Kobebelieves that it may take about a year to get his license from thecity, but he is not sure. This projection by Kobe is based on thefact that Shaq has been hired by Kobe to secure the license forKobe and Shaq said that he has done this many time for othercompanies and it general takes about a year each time.

Jordan receives all of the revenue for the new business throughhis business account at the arena and then he gives Kobe 90% of thegross revenue each month for the first 10 months, until October2017. Then Jordan finds out that Kobe has applied for and receiveda license to operate the new business under Kobe’s individual name,when Kobe then notifies Jordan that he is terminating the contractbetween them.

Kobe signs a new contract with the arena under his business’name, then starts to operate the new business under his newbusiness’ license in November 2017. Jordan receives the revenuefrom November 2017 into his account and keeps all of the deposit,$20,000. Jordan stated that the verbal agreement between him andKobe did not have an end date, so Kobe had breached the agreementby attempting to terminate the contract and, therefore, Jordan isentitled is entitled to keep all of the $20,000. From operationsfor November 2017 as damages for the breach by Kobe. Kobe demandsthat Jordan give him the 90% of the revenue for November 2017 thathe is entitled to and Jordan refuses.

Kobe personally sues Jordan for breach of contract and Jordancounter sues Kobe for Fraud and Breach of Contract. Kobe, thePlaintiff, hires groups 1,3 and 5 to represent him and Jordan hiresgroups 2,4 and 6 to represent him.

Assignment

           Determine what types of contracts have been created in the abovefact pattern (e.g., bilateral, unilateral, express, implied,verbal, written, executed, executory, etc.)? What are the terms ofthe contracts, if any have been created? Who has breached thecontracts, if any? Are the contracts enforceable? Then prepare alegal defense for your client. Yu should be prepared to make anoral presentation f about 20minutes. All group members shouldparticipate in the preparation of the oral defense and the writtenbrief (8-10 pages) to be submitted at the time of thepresentation.

Grade

               Each team member will receive an individual grade for the writtenbrief and an individual grade for the oral presentation If teammembers agree to work collectively on a single brief, then a singlegrade will be given to all participants on that brief. Project DueDate: 4/18/2018

Addendum – Stipulated Classroom Law:

A general partnership agreement (contract is created when two ormore individuals start a business enterprise to make profits; theyshare equally in the management of the enterprise, they equallyshare the risks and liabilities associated with the enterprise andthey share equally in the profits of the enterprise.

Assignment No. #2

You, the student/ attorney, are to draft a contract based onyour understanding of what the terms of the verbal agreement arebetween your client (plaintiff/defendant) and the opposing party tothe dispute. The contract should identify the parties, theconsideration, the nature of the offer and the form of acceptance,the start date of the contract and the termination period, andconditions (precedent or subsequent) to the enforcement of thecontract, any third party beneficiaries to the contract, whatconstitutes a material breach of the contract as well as watdamages can be awarded for breaching the contract, plus any othercontractual clauses that you may deem appropriate. Type written,1.5 spacing, 12-point font (Times Roman,), attach this signed coverpage to contract. Due before class period April 19.