Michael and Johnny are sitting at a bar having a few beers. Michael is a product engineer and Johnny is an electrical engineer.
business
Description
Michael and Johnny are sitting at a bar having a few beers. Michael is a
product engineer and Johnny is an electrical engineer. Johnny says it would be
interesting if someone could create a product that not only kept beer cold but
could tell your blood alcohol content just by holding it. Michael agrees that's
a great idea. Johnny tells Michael more about his idea and shows him the
schematic of his concept. Several months later Michael has applied for a patent
for the BA Colder; a sleeve for beer that tells the BAC of whoever is holding
it.
In the case of Michael and Johnny, it doesn’t appear that there is any
sort of contract between the two. Johnny
is the one who drew up a schematic of the BA Colder, and blabbed to Michael the
whole idea of his project and showed him the schematic
What constitutes a legally binding contract:
·
Offer and acceptance of that offer
·
Consideration – Anything of value – something of value from both parties
·
Specificity of terms – A clear understanding about what’s being agreed
to
·
Capacity of the parties – Both parties have to be capable of making an
agreement
·
Has to comply with the law – Has to be legal
-Was there a contract of any kind? (The fact that they
were drinking beer DOES NOT invalidate the contract -- this is not enough for
intoxication to invalidate the contract)
-Who has legal rights to the concept?
-Is there any intellectual property violation?
-Discuss any other concepts you feel are relevant.
