Question
Kevin is an actor. When he was 17 years old, the CEO of MGM Studios, Valerie, met with Kevin and asked if he would appear
Kevin is an actor. When he was 17 years old, the CEO of MGM Studios, Valerie, met with Kevin and asked if he would appear in a trilogy of movies being produced by MGM over the next three years. Valerie sent Kevin an e-mail confirming their conversation and stating that the studio would pay Kevin $40,000 per film. Kevin met in person with Valerie and said he would love to appear in the movies. Before shaking hands, Valerie said MGM Studios could cancel the contract at anytime in the first year of the contract. Kevin appeared in two of the films, one when he was 17 and another when he was 18.
The movies made Kevin a major star and Javier, an executive for Panoramic Studios, offered to pay Kevin $3,000,000 to appear in a new movie his studio was producing. Kevin said he would appear in Javier's film, but only if his sister, Kate, could receive a $100,000 salary to serve as his personal assistant "for the duration of the filming." Javier said he would check with his boss to see if Kate could be added, but he never got back to Kevin.
Kevin called Valerie and told her that he would not be appearing in the third movie of the MGM Studios trilogy. Valerie protested, but Kevin explained that he had a better offer from Panoramic. Valerie said she would give Kevin a salary increase to $1,000,000 for appearing in the third movie. Kevin agreed to appear in the third movie for MGM studios. Halfway through filming the third movie for MGM studios, Kevin breaks his leg and is unable to complete the film. To satisfy their production schedule, MGM hires another actor at a price of $250,000 to take Kevin's place. At the box office, the movie grosses much less money than MGM had expected and most critics find the substitute actor's performance to be very poor.
After Kevin's leg heals, he appears in the film for Panoramic Studios. After six months of filming during which Kate works 12-16 hours per day as Kevin's personal assistant, Kate is ordered to leave the movie set and Panoramic refuses to pay her any money for serving as Kevin's personal assistant. Kevin walks off the set and refuses to film the final two scenes and to do any publicity for the film. Panoramic withholds $1,500,000 from Kevin's pay for his refusal. Subsequently, MGM Studios brings a lawsuit against Kevin, Kevin and Kate bring a lawsuit against Panoramic, and Panoramic countersues against Kevin.
Please discuss all legal issues involved in these cases. Focus on issues of contract formation, contract enforcement, and remedies available.
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Legal issues involved in the cases 1 Contract Formation MGM Studios and Kevin There was an initial offer made by Valerie to Kevin to appear in a trilo...Get Instant Access to Expert-Tailored Solutions
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