James "Buster" Douglas and his manager John Johnson, entered into a loxing promotion agreement on December 31, 1988 (the "Promotional Agreement" or "Agreement"), with Don King Productions, Inc. (DKP). The Promotional Agreement provided for payment of $26,000 to Douglas in return for DIP's exclusive right to promote his professional boxing bouts for three years. The Agreement provided that this term would be automatically extended in the ovent Douglas was recognized as world champion, "to cover the entire period you are world champion and a period of two years following" loss of the title. Compensation for individual bouts was to be agreed upon, with the negotiated terms to be set forth in the individually-negotiated bout agreements. The Promotional Agreement specified a floor level of compensation of $50,000 plus $10,000 in training expenses for Douglas' fights, except that in the case of a title bout or defense, no floor was provided, but such a purse was to be "negotiated and mutually agreed upon."

During the first year of the agreement, Douglas participated in three bouts arranged by DKP, the last of which was the heavyweight championship bout held in Tokyo on February 10, 1990, in which Douglas Shocked the world" by defeating Mike Tyson. In accordance with the Promotional Agreement, Douglas and Johnson had entered into a bout agreement on August 14, 1989 (the "Bout Agreement") pursuant to which Douglas was to be paid $1.3 million. This Bout Agreement granted DKP an Exclusive option: to promote [Douglas'] next three bouts following the Tokyo bout, such option to be exercised by giving notice to Douglas no later than 30 days after the Tokyo bout." The Bout Agreement provided that Douglas would receive S1 million for each of these bouts, except that in the event Douglas was the winner of the Tokyo bout, subsequent bouts would be subject to negotiation of a higher purse.

DKP sought to exercise its option and hold a rematch between Douglas and Irson in June 1990 at Trump Plaza in Atlantic City. However, on February 21, 1990, Douglas and Johnson executed a contract with Golden Nugget, Inc. and The Mirage Casino-Hotel (collectively, "Mirage") to stage Douglas' next two fights at the Mirage in Las Vegas, with a guaranteed minimum purse of $25 million each. This contract was made contingent upon Douglas obtaining a release from DKP or a judicial declaration that the Promotional and Bout Agreements were void or unenforceable.

In seeking such a declaration, Douglas and Johnson contend that they are not bound by the Promotional and Bout Agreements because those agreements "are indefinite as to the essential term of consideration." Assuming New York law controls, how would you expect a court to rule? See Don King Productions, Inc. v. Douglas (James "Buster'), 742 F Supp. 741 (S.D.N.Y. 1990).