Question Description

Case Analysis

Determine whether certain contract remedies exist in the following scenario:

Forrest Gump is a famous table tennis player. He enters into a contract with Alabama Sports Marketing to advertise thelatest ping pong game and to serve as the computer-generated imagery (CGI) model for the development of the videogame. Gump is perfect for this job as there are not many world famous ping pong players who have a following similar tohis. The game is set to start development on March 1 and will be completed on July 31, so the game can be released atThanksgiving—a major video game release period. Both parties have agreed and stipulated to the fact that the gamemust 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 damagesclause that indicates that if Gump does not participate in the marketing, does not serve as the CGI model, or breaches thecontract 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 250words each.

1. One day, Gump gets into an argument with the developer. Gump refuses to perform any work until the problem issolved. In this situation, can Alabama Sports Marketing seek specific performance of the contract? If yes, why? If no, whynot?

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

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