Friday, November 4, 2011

Question from My Contract Law Final Exam in June - Foreshadowing???

Professor John’s band Legs becomes very popular after their hit song "Chongqing State of Mind" reaches number one on the Billboard charts that they are offered $200,000 a show to perform five concerts around the world with stops in Mauritius, France, Canada, America and China.

After being mobbed "like he was Justin Bieber" during the bands show in Dazu, China, the agents are so impressed by their performance that they inform the band that they will give them another $350,000 to appear in another concert in Jiangbei. The band is so excited by this that they do not sign a new contract and perform another show in China.

Word spreads around Hollywood about these new stars and sensing that Legs is going to become big, the magazine, "Rolling Stone" tells John if he and lead singer Celie dye their hair blonde, they will pay the band $50,000 to take a picture for their cover in New York.

Legs is also informed that after floundering ratings in their last season, American Idol wants to change their format with bands and groups replacing individual performers and will offer $10,000,000 to the winning band for their next season.

Legs is so excited about all this money that they decide they want to build a ten foot statue of the band to put up in front of Cotton Club in Chongqing. They sign a contract with "We Build It Quick" who can build it within one week for $500,000.

The next week, John and Celie dye their hair blonde and go to the photo shoot with Rolling Stone. However, they are informed that they are going to have Prince William and Kate on the cover instead.

Although Legs are disappointed that this did not work out, they have to fly from New York to Los Angeles for the start of the "American Idol: World Band Edition" competition. Familiar with the traffic in New York City, Marine, the lead guitarist hires a limousine company to get the band from her home in Manhattan to the airport and tells the company the importance of being on time because they have a flight to catch that is "very, very important!" Unfortunately, the driver is late and Legs misses the flight. As a result, the show replaces them with Rebecca Black’s new band, "Friday’s After Thursday" in the eight group competition.

Legs’ day only gets worse when they are informed that they will not be paid for the sixth concert in Jiangbei because the agents were upset they did not sing "Chongqing Girls" and "Take Me Home, Chongqing Roads" and since they do not have a contract for the sixth show, they can do so.

Legs is very upset, so they decide to fly to Chongqing to see their new ten foot statues to cheer them up. However, they find out that is is only 8 feet tall. The company apologizes but claim that its "close enough" and it will cost $750,000 to demolish and rebuild.

Legs are so angry about everything that they want to sue the entire world!

Please ASSUME that even though this includes cities around the world, including China, that all contracts were made under Canadian law that we studied. Please reference cases studied in the course to support all your answers!


1. Suppose that you are Legs’ lawyer, Miles Taylor. Inform Legs what ALL their options are in pursuing breach of contract claims against ALL appropriate parties and under what grounds. For example, Legs could sue the limousine company for not getting them to the airport on time and making them miss the chance to be on American Idol. (5 Marks)

2. If you were the judge in the case between Legs and the limousine company, how much money in damages would you award to them, if any. What cases would you consider to help you make this decision? (5 Marks)

3. If you were the judge in the case between Legs and the construction company, how much money in damages would you award to Legs, if any. What cases would you consider to help you make this decision? (5 Marks)

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