Contract Cases analysis. Remember: there are always two sides to every story!When it comes to lawsuits involving Contracts, each side believes they are right and the other side is wrong!!!!Each side believes their actions are justified.Each side wants to protect their financial position.

Chloe is the managing director of a whisky distillery, Glencrows (in Scotland). In an effort to increase sales across North America, she enters into negotiations with Derek, a Canadian distributor of alcoholic beverages. She tells Derek that Glencrows' new whisky, Burns, is of the finest quality yet and that this type of blended whisky always sells well. She also informs Derek that McDougal, the famous whisky connoisseur, works at Glencrows and, if Derek distributes the whisky, Derek will get to work with McDougal. Derek has never heard of McDougal and is not interested in celebrity culture. However, he finds Chloe very attractive and wishes to get to know her better. He also wants to use this opportunity to expand his business into the whisky market, having formerly concentrated his business solely on wine and beer. He therefore contracts with Chloe to distribute Burns across North America.

Derek's attempts to break into the North American whisky market are disastrous. It is well known in the whisky industry that blended whisky is unpopular in North America and will not sell. Derek now realises, however, that McDougal is a hugely popular European television celebrity and believes that his association with Glencrows (and thus with Burns) will help Derek to sell the whisky. However, Derek now discovers that a week before he signed the contract with Chloe, McDougal gave Chloe notice to leave Glencrows and no longer works there. Derek is distraught. In addition, the failure of his whisky venture means that he has been unable to invest in a new brandy liqueur which is proving extremely profitable in North America.

Advise Derek.

1.Think about who is promising what to whom.

2.Think about contract terms - are the terms in the above scenarios clear?

3.Think about lying and misrepresentation; consider duress.

4.If you are familiar with the concept of promissory estoppel, consider how it may apply to this Case

5.Think about the ideas of acting in Good Faith (and the opposite... acting in Bad Faith).

6.Finally, consider good old common sense and consider smart business practices.