CASE 6 Page 304 Valentino entered into a contract with TV Production Co. to perform the...

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CASE 6 Page 304 Valentino entered into a contract with TV Production Co. to perform the leading role in a television play the company wished to produce. The contract called for the actor to devote his time exclusively to the play until taping was complete, a period of some four weeks. His compensation was to be $20,000. Three days after the contract was signed, Valentino notified the company that he did not intend to perform the role, and that the company should find a new leading actor for the production. The company attempted to find a substitute for Valentino, but after an exhaustive search could find no one suitable. As a consequence, they were obliged to abandon their plans for the production. During the three- day period after signing Valentino, the company incurred liability of $36,500, under contracts they had entered into for services and commitments made in anticipation of his starring in the production. They also incurred the sum of $2,500 in expenses paid to find a substitute, when Valentino refused to perform. The company instituted legal proceedings against Valentino to recover the total expenses incurred as a result of his repudiation. In response, Valentino offered a settlement of $2,500 to cover expenses incurred in their search for a substitute actor. Discuss the arguments of the parties and render a decision. CASE 6 Page 304 Valentino entered into a contract with TV Production Co. to perform the leading role in a television play the company wished to produce. The contract called for the actor to devote his time exclusively to the play until taping was complete, a period of some four weeks. His compensation was to be $20,000. Three days after the contract was signed, Valentino notified the company that he did not intend to perform the role, and that the company should find a new leading actor for the production. The company attempted to find a substitute for Valentino, but after an exhaustive search could find no one suitable. As a consequence, they were obliged to abandon their plans for the production. During the three- day period after signing Valentino, the company incurred liability of $36,500, under contracts they had entered into for services and commitments made in anticipation of his starring in the production. They also incurred the sum of $2,500 in expenses paid to find a substitute, when Valentino refused to perform. The company instituted legal proceedings against Valentino to recover the total expenses incurred as a result of his repudiation. In response, Valentino offered a settlement of $2,500 to cover expenses incurred in their search for a substitute actor. Discuss the arguments of the parties and render a decision.

Answer rating: 100% (QA)

In this case we need to analyze the legal principles and determine the appropriate remedy available to TV Production Co against Valentinos breach of c... View the full answer