DREW and JOHN entered into a written contract whereby JOHN agreed to sell his exclusive line of high-style men's wear to retailer DREW, BUT, as part of the written contract, JOHN reserved the "unconditional right to cancel the contract at any time." In reliance on the contract, DREW runs a large promotional campaign and incurs heavy advertising expenses. JOHN then cancels the contract and refuses to ship any merchandise to DREW.

DREW now sues JOHN for breach of contract. JOHN defends by saying that "there never was a contract".

NOTE: Assume that the quantity and price of the merchandise had been agreed upon in the written Contract between DREW and JOHN, and, assume further, that DREW CAN NOT prove "Fraud" or "Misrepresentation" on JOHN's part in the transaction.

QUESTION 1 - Part 1 DREW vs. JOHN

What legal defenses, if any, could JOHN use to avoid having to ship merchandise to DREW or having to pay DREW any money. Set forth theexact LAW(s) that JOHN could use to support his position.

QUESTION 1 - Part 2 DREW vs. JOHN

What, if any, Legal Responses (Defenses) could DREW use to defeat JOHN's defenses. Set forth theexact LAW(s) that DREW could use to defeat JOHN's Defenses and get the merchandise from JOHN or to enforce the Contract in any way in order to receive any money from JOHN.