Ivan entered into a contract with Poe Paperback Inc, a small publishing company, to write a mystery

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Ivan entered into a contract with Poe Paperback Inc, a small publishing company, to write a mystery novel in exchange for $5000. Under the terms of the contract, Ivan was to deliver a manuscript to Poe within 18 months. However, after three weeks of staring hopelessly at a blank computer screen, Ivan reached the conclusion that he had developed irreparable writer's block and that he would not be able to produce the promised novel. He sent a letter to Poe that said, "I am terribly sorry, but I will have to withdraw from our contract. Since you have not made any payments to me yet, I cannot imagine that you have any objections and I will assume that my proposal is acceptable to you." Ivan received no response from Poe. After another 12 months, however, he suddenly found the inspiration to write a brilliant mystery novel in the space of two weeks. He then entered into negotiations with Christie Mysteries Ltd, a large publishing company, to sell the completed manuscript for $100 000. At that point, Poe contacted Ivan and insisted that the book belonged to it. Ivan, however, insists that he was relieved of his contractual obligations to Poe. Did Ivan breach his contract with Poe? If so, describe the nature of the breach. If there was a breach of contract, is Poe entitled to rely upon it and to seek legal relief from Ivan? Explain.

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Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0133847154

5th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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