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Elements of a Contract In 2001, Jamil Blackmon filed a lawsuit against Allen Iverson, alleging breach of contract (among other claims). Blakmon asserted that Iverson

  1. Elements of a Contract
    1. In 2001, Jamil Blackmon filed a lawsuit against Allen Iverson, alleging breach of contract (among other claims). Blakmon asserted that Iverson breached a promise to pay Blackmon 25% of all earnings from use of the nickname or logo "The Answer," which Blakmon claimed to have created. In ruling for Iverson, the court found no evidence of an agreement where both parties show intent to be bound to definite terms, meaning there was no specific offer, acceptance, or consideration. Blackmon did create the logo; however, Iverson's promise to pay was made after the nickname was created; the court considered this a form of past consideration. A promise made in return for actions that have already occurred is unenforceable and is not adequate consideration to form a contract because there is no bargained-for exchange (Blackmon v. Iverson, 2003). How should Blackmon have handled this situation initially? As a sports manager, what lessons are learned from this case? Which additional contract law claim may Blackmon have filed?
  2. Additional Contract Law Doctrines
    1. Jackson v. Drake University was decided 25 years ago; however, the issues in that case are still present today. College coaches often make promises to prospective athletes during recruiting visits that are not contained in the NLI; further, if a student is recruited by a coach who then leaves for a different university, the student-athlete is still contractually bound to attend the school to which they committed. Should student athletes have recourse when promises made are not kept? Should addendums to the NLI be allowed, as they are to standard player contracts for professional athletes? How would collegiate athletics be impacted if student athletes successfully used promissory estoppel in legal challenges?
  3. Breach of Contract Remedies
    1. The calculation of damages in a breach of contract lawsuit is impacted by the plaintiff's duty to mitigate. In 1995, Michael Jordan entered into a 10-year endorsement contract with MCI, a communications company. The agreement gave MCI the right to use Jordan's name, image, and likeness to promote its products. Additionally, the deal was exclusive in its product category; under the contract, Jordan was not permitted to endorse any other communications-related products. After the first five years of the contract, MCI filed for bankruptcy and ceased payment to Jordan; a breach of contract lawsuit was filed. Jordan claimed he was entitled to damages; MCI argued that Jordan had a duty to mitigate the damages and that he did not adequately do so. Jordan asserted that there was no evidence he could have entered into a substantially similar agreement and that his business strategy at the time of the bankruptcy had shifted to future NBA ownership and away from endorsements. Ultimately, after consideration of many factors, the court concluded that Jordan did not fulfill his duty to mitigate (In re Worldcom, Inc., 2007). The duty to mitigate places the burden on the plaintiff in a breach of contract lawsuit; does this seem fair? Given the current economic climate, coupled with the advent of social media and public scrutiny, do long-term endorsement deals make sense for either the athlete or the business entity?
  4. Employment Contracts
    1. James Kason is an outfielder with the Oakland Athletics. His contract prohibits him from engaging in dangerous off-season activities. While on vacation with his family, he attended a minor league baseball game in which his college roommate was the starting pitcher. The manager of the minor league team asked him to throw out the first pitch. He did not warm up, and during the throw to the plate, he suffered a dislocated shoulder. He subsequently missed the first 35 games of the season with the A's. His contract specifically provided the following: "Player shall not play baseball for any other team during the off-season, nor shall the player engage in any of the following activities during the off-season, including but not limited to football, or any impromptu or competitive game of football, baseball, or softball, lacrosse, lawn bowling, bowling, horseback riding, car racing, parachuting, basketball, ice or field hockey, track and field activities, table tennis, tennis, polo, karate, cricket, badminton, or any other form of martial arts, including but not listed below: Does the team have the legal right to terminate the player's contract? How do you anticipate each party would interpret the relevant clause?
  5. Non-Employment Contracts
    1. Your client had recently signed an endorsement agreement with Adidas Corporation. The contract states the following: "Company may revoke this agreement if player commits any act of moral turpitude that reflects poorly on the company's reputation or diminishes the company's good will in the marketplace." Your client was arrested for allegedly assaulting a fellow patron in a bar fight. He was shown on television in handcuffs, wearing a hat bearing the company's logo. This picture was displayed on television many times for the next several weeks. The player claimed he was innocent. The company invoked the clause and sent the player a notice that it was terminating the contract. Six months after the player received the termination notice, the local prosecutor dismissed all charges against the player. The player now wants to sue the company for breach of contract. Was the company's position legally sound when it terminated the contract? How could the morals clause be drafted better?
  6. Contract Law Principles Applied
    1. Assume you are responsible for planning a golf tournament to raise funds for a charity. Which aspects of the event might require contracts? After considering the collective list of contracts that might be needed, focus on one and consider what you might include as important terms of the contract.

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