Unit 5 Assignment Breach of contract
LS311-03 Business Law
September 25, 2012
Unit 5 Assignment
Read the following news story at http://www.huffingtonpost.com/2008/11/04/charlize-theron-settles-2_n_140920.html , involving a breach of contract. For this assignment, answer the following questions based on the above news story:
Breach of Contract: is the non-performance of a contractual duty (Miller &Jentz, 2008).
Charlize Theron allegedly breached her contract by wearing a Christian Dior watch during a press event. The contract stated that during the time frame of October 2005 through December 2006 Charlize would only wear Raymond Weil watches. Raymond weil contract was that Charlize was to use the photographs in its advertisement in which Charlize was paid to do so. Being that Charlize was wearing the watch of Dior was a breach of contract which also is a material breach of contract. A material breach will allow Raymond Weil to collect damages because of the breach.
A defense that can be claimed is that Charlize did not know that she had to wear Raymond’s watches at all occasions, which would be a unilateral mistake. Another defense is that she could claim that she was also working with Dior, and that they were at their press conference then it would not look right that she was wearing Raymond’s watches while promoting Dior.
Raymond Weil had just cause to sue Charlize for damages because they use her as a spokesperson for their watches. This would allow Raymond to void the contract, and not be held responsible for a financial payment that they may not have paid to Charlize at the time of the breach of contract.
Case Study for Assignment retrieved on September 24, 2012 from http://www.huffingtonpost.com/2008/11/04/charlize-theron-settles-2_n_140920.html
Miller, R., & Jentz, G. (2008). Fundamentals of business law part .Boston, MA: Cengage.