Don King and Beyoncé are having lunch discussing a new concert tour that Don Kin

Question

Don King and Beyoncé are having lunch discussing a new concert tour that Don King would like to promote for Beyoncé. They are both excited about this whirlwind international concert tour. King writes out all of the relevant terms on the back of a menu and Beyoncé signs it. Don King 2. tells her that he won't sign until his lawyer reads the back of the menu, but shakes hands with Beyoncé and says you have a deal. This lunch took place on December 3, 2017. King never signed the document. The writing states that they will begin working on the tour in May 2018 but it will not be completed until April 2019. King tells Beyoncé to make sure she blocks out the months May 2018 through April 2019 for the tour. The tour starts, but King has a falling out with Beyoncé and cancels the tour in November of 2018. The way the deal was negotiated, Beyoncé was not going to get paid until the tour was over in April 2019. Under the deal, Beyoncé was going to receive $25 million plus 25% of the gross receipts. This was much more than any other performer had ever received. For the 6 months of the tour the gross receipts were $100 million. Beyoncé sues Don King. Beyoncé and Don King make their arguments and you are the judge. What arguments did each make with respect as to why they should win the case and with respect to the amount of damages? Who do you rule in favor of? Why? 2

Explanation / Answer

Based on the case study, the following facts are very much clear:

As per the law an agreement becomes a contract if both the parties agree to it with a proper knowledge of the requirements (terms and conditions). In this case also, both Don King and Beyoncé agreed to each other and both were very much aware of the terms and conditions.

In this case, since the tour started and was continued for six months, it is very much clear that it is Don King’s fault to not complete his obligation as per the agreed terms.

According to law any victim is liable to be paid for the losses that he/she faces due to the non-compliance of the contract. Since Beyoncé will face huge monetary losses, she can give following reasons to be paid:

It is sure that the decision will be given in the favour of Beyoncé.

However, Don King may escape from the punishment if he proves a genuine reason to why the contract cannot be continued. Also, the reason should show the faults of Beyoncé.

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