Forrest Gump is a famous table tennis player. He enters into a contract with Alabama Sports Marketing to advertise the latest ping pong game and to serve as the computer-generated imagery (CGI) model for the development of the video game. Gump is perfect for this job as there are not many world famous ping pong players who have a following similar to his. The game is set to start development on March 1 and will be completed on July 31, so the game can be released at Thanksgiving—a major video game release period. Both parties have agreed and stipulated to the fact that the game must be completed on time to maximize the profits.

Gump will make 20% of the net proceeds from the sales of the game. In addition, the contract has a liquidated damages clause that indicates that if Gump does not participate in the marketing, does not serve as the CGI model, or breaches the contract in any way, he will owe Alabama Sports Marketing $2 million.

Based on this fact pattern and the information presented in this unit, answer the following questions in a minimum of 250 words each.

1. One day, Gump gets into an argument with the developer. Gump refuses to perform any work until the problem is solved. In this situation, can Alabama Sports Marketing seek specific performance of the contract? If yes, why? If no, why not?

2. How would the court determine whether the liquidated damages clause is valid? Is this clause valid? Explain your answers.

Cite any direct quotes or paraphrased material from outside sources. Use APA format

Answer preview

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A contract is a legally binding agreement between different parties and has consequences that apply to those who breach it. In the case of Forrest Gump and Alabama Sports Marketing, it is my opinion that Alabama Sports Marketing should seek specific performance of the contract. According to the deal agreed upon by both parties, Gump had an obligation to participate in the marketing of the video game and to serve as the computer-generated imagery. From the information given, the contract did not specify any exceptional situations that would permit him to withhold his participation. Interpersonal relations between him and the developer do not…

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