Martin Mogul, CEO of Colossus Studios, wanted to hire Zach Taylor to be head of the video sales division. He told Taylor during a meeting at an upscale Beverly Hills restaurant "At the beginning of 2000, when you are free from your contract to work for Rupert Murdock's company I want you to come to Colossus. I will pay you $2 million per year. Your employment with us will be for a period of 5 years. Of course we can draw up a formal written contract later." Taylor replied: "I really want to work for you – of course I will accept your offer." No written contract was ever signed. On 15 December 1999 Mogul called Taylor and said: "I've changed my mind and hired someone else for the video job – we won't be hiring you after all". Taylor, claiming that he had a contract providing for employment for a period of 5 years, filed suit for breach of contract. Is Taylor's contract with Colossus enforceable?
Consumer Law, Warranties Is a verbal agreement binding in this case?
- Thread Starter singlima
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jharris352
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It's worth a shot but this statement was "aspirational" and not contractual. The elements of a contract: Meeting of the minds, Offer/Acceptance, Mutual Consideration, and Delivery were not all present here.
Specifically the terms were not spelled out but left open-ended. "When you get free from your contract to work for RM" is not a specific time. "I want you to come to Colossus" is not an offer and simply accepting it without some mutual consideration does not make it a binding contract.
Ted Turner was sued once for saying something to his college roommate like: When I get rich I will give you 1,000,000 dollars. This was not an enforceable contract. This is a similar situation in my estimation.
Specifically the terms were not spelled out but left open-ended. "When you get free from your contract to work for RM" is not a specific time. "I want you to come to Colossus" is not an offer and simply accepting it without some mutual consideration does not make it a binding contract.
Ted Turner was sued once for saying something to his college roommate like: When I get rich I will give you 1,000,000 dollars. This was not an enforceable contract. This is a similar situation in my estimation.
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