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American Contract Law for a Global Age, 2017a

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eaching its lease with Perez by the act of converting Anderson Tower into<br />

condominiums.<br />

Perez deeply wants to keep the 8th Avenue Grill and life as she knows it intact<br />

<strong>for</strong> the remaining four years on her lease be<strong>for</strong>e she retires. Can Perez obtain a decree<br />

of specific per<strong>for</strong>mance requiring Anderson LLP to per<strong>for</strong>m its contractual obligation<br />

to lease space in Anderson Towers as an office building <strong>for</strong> four more years? What<br />

will both sides argue and who should prevail?<br />

Problem 26.2<br />

In March, retail chain Toys-We-Is signed a contract with PlayCo, a home<br />

playground equipment manufacturer. The contract provides <strong>for</strong> PlayCo to ship Toys-<br />

We-Is 1,000 of its exclusively licensed Space Trek Wars play <strong>for</strong>ts at $10,000 each,<br />

<strong>for</strong> delivery on November 1. Toys-We-Is originally planned, in turn, to sell the play<br />

<strong>for</strong>ts <strong>for</strong> $15,000 at retail. In July, however, a new installment in the Space Trek<br />

Wars movie franchise releases and it becomes a massive hit, increasing the demand<br />

<strong>for</strong> products associated with Space Trek Wars. Sensing an opportunity, Toys-We-Is<br />

launched an ad campaign built around these elaborate sci-fi themed play <strong>for</strong>ts, which<br />

it now plans to sell <strong>for</strong> $20,000 as all indications are that the <strong>for</strong>ts will be a high-end<br />

“it” toy <strong>for</strong> the holiday season.<br />

On October 1, PlayCo in<strong>for</strong>ms Toys-We-Is that it is breaching the contract and<br />

will not deliver any of the <strong>for</strong>ts. The real reason <strong>for</strong> this breach, it turns out, is that<br />

PlayCo decided it could sell the <strong>for</strong>ts to the public itself through its website and reap<br />

all the profit. The president of Toys-We-Is, Latoya Ball, has come to your office about<br />

the situation. Ball says that while losing profit on the <strong>for</strong>ts is bad enough, her greater<br />

concern is with the loss of reputation <strong>for</strong> the Toys-We-Is chain, which has built its<br />

entire marketing plan around Space Trek Wars and these play <strong>for</strong>ts as the “crown<br />

jewel” product. Many customers would be drawn into the stores to gawk at the floor<br />

model, even though few will purchase it. That sort of foot traffic (especially parents<br />

with children) drives holiday sales. Ball wants to know if she can <strong>for</strong>ce PlayCo to<br />

honor its agreement with Toys-We-Is. Can she? Make sure your answer addresses<br />

UCC § 2-716 and its Official Comments 1 and 2.<br />

Problem 26.3<br />

In April 20X0, ex-NBA player Carlisle Richards and regional school Kings<br />

State University (“KSU”) executed an employment agreement making Richards the<br />

head men’s basketball coach at KSU <strong>for</strong> a period of four years with an option <strong>for</strong> a<br />

fifth year. The contract contained a liquidated damages provision that states:<br />

Richards recognizes that his promise to work <strong>for</strong> the<br />

University <strong>for</strong> the entire term of this contract is of the<br />

______________________________________________________________________________<br />

564 CHAPTER VIII: REMEDIES

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