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Southwestern Massachusetts State (SMS) decided in 2018 to have its football team play against high caliber opponents to increase its national recognition.  SMS contacted Tennessee to set up a football game.  SMS offered to pay Tennessee $50,000 if Tennessee would come to SMS for a football game in the fall of 2019.  Tennessee agreed to SMS’ offer.  The night before Tennessee was supposed to leave for SMS, Tennessee’s Athletic Director contacted SMS’ Athletic Director to tell her that Tennessee would not actually make the trip to play against SMS’ football team.  The Tennessee Athletic Director explained that Tennessee was actually going to play Florida State instead.  SMS expected to get $100,000 in revenue from the game itself.  In light of the fact that FOX was going to nationally televise the game, SMS spent $200,000 on commercials promoting SMS as an academic institution.  SMS would not normally spend money on commercials, but it felt that the national exposure would bring students to SMS from all over the country. 

a. List, define and explain the five essential elements in the formation of a contract. Be sure to use the facts as presented in the case.

b. What are the possible remedies for breach of contract?  Discuss and explain all remedies. 

c. Must this contract be in writing?  Explain why or why not.

Assume now that the reason Tennessee could not come to SMS to play the football game was that Tennessee eliminated its football program after incurring numerous NCAA violations.  What defense may Tennessee raise against a breach of contract claim?  Explain.  

Respond 1 Ty

The five fundamental components of an agreement incorporate an offer, acknowledgment, thought, commonality of commitment, and limit. An offer is commonly characterized as a guarantee to act or cease from acting. SMS offered to pay Tennessee 50,000 dollars if Tennessee would come play them. Acknowledgment is the affirmation and consent to the offer displayed. Tennessee plainly consented to SMS offer. Thought is the trading of significant worth between two gatherings. SMS offered to pay Tennessee 50,000 dollars which made it productive for Tennessee and SMS was going to benefit from the game itself and from national acknowledgment prompting increments in auxiliary incomes. For commonality to exist, the two gatherings must will undoubtedly perform without the privilege for one gathering to drop the agreement. The two schools consented to play and after that Tennessee chose to void the agreement without common understanding from SMS. At long last, limit is characterized as the two gatherings capacity to satisfy their proposed legally binding commitments. Inside the setting of the underlying proposed situation, the two schools had the ability to effective satisfy their commitments. Tennessee unmistakably broke their agreement with SMS and now SMS has the option to look for harms. Tennessee could cure their rupture of agreement by paying SMS for all present and future financial related harms. On the off chance that Tennessee chose to play Florida State rather, they should almost certainly divert a greater benefit from that game versus their underlying responsibility to play the SMS game. Tennessee could utilize a portion of that income to pay monetary misfortunes to SMS for break of agreement. For the most part, there are no hard laws that state contracts must be formally recorded as a hard copy except if they can be categorized as one of four explicit classes. In this example, this situation does not fall into any of those classifications and therefor shouldn't be formally finished recorded as a hard copy. Presently expecting Tennessee couldn't come to SMS on the grounds that their football program was dispensed with, Tennessee may guarantee that they didn't have the limit so as to satisfy their legally binding commitments. On the off chance that Tennessee doesn't have a football crew, at that point they can't in any way, shape or form travel to SMS to play a football match-up.

Respond 2 he

Athletic organizations are dealing with contract law on a daily basis. These contracts could be with players, networks, vendors, coaches, athletes, and many other entities involved with the organization or event. Contracts must include these five parts to be considered legally binding; offer, acceptance, consideration, legality, and competency and capacity. In some cases the contract must be written as well (Wong, 2010).

An offer is classified as a conditional promise from the offerer to the offeree (Wong, 2010). In this case the athletic director at Southwest Massachusetts State contacted the University of Tennessee athletic director and made an offer of $50,000 in return for a home game in their 2019 schedule. To continue making this a legal contract the offeree, University of Tennessee, would have to respond, and, in this case, agreed to the offer. At this point of the example it is unclear as to if the offer would have fully went through. Although it states Tennessee agreed to come play in 2019 there is not a date or time listed in this example. This could be a the point the University of Tennessee would make in avoiding a breach of contract claim.

The second element is the acceptance which would have to be made by the University of Tennessee. Although, they may have agreed in principle, it is not known if the SMS athletic director completed the offer therefore hindering Tennessee to accept the parameters and the contract. 

Third is consideration which covers the offer and acceptance, plus the understanding that both parties are giving up something. The University of Tennessee in this case is giving up a valuable home-game to travel to SMS to play. While SMS is offering a $50,000 guarantee to assure they can get a storied team to play on their home field. 

The fourth element, legality, of a contract is not clearly defined here. The offer, acceptance, and consideration seem to have been made, but there is no mention of any covenant, or promise to engage in or refrain from a specified action. Without these covenants and the lack of specific dates listed it would make it difficult for SMS to pursue a breach of contract against the University of Tennessee. 

The final element is capacity, or the ability of the person(s) or organization(s) entering contract to understand the terms and conditions and has the power and permission to represent the organization. In this instance both athletic directors would seem to have this power, but could be a gray area. In working for a state universities all of our contracts, aside from hotel contracts, had to be signed by the chancellor of the university. Without this knowledge of their organizational expectations it is unknown if both athletic directors have the capacity to represent the universities in these contracts.

SMS will try to use expectation as a remedy to their belief in a breach of contract. As the book states expectation is the benefit the party expects to get as the direct result of contract.  Although, they were expecting $100,000 in revenues it is not clear what their profits would have been on these revenues and if it would have covered the $50,000 guaranteed paid. These numbers are not clear enough to truly know the expectation of SMS.

The second part of breach of contract is reliance, or the loss suffered based on expenditures made based off the contractual promise. In this case SMS spent $200,000 on advertising in belief they would be having a nationally televised game against a storied program. If the contract is considered binding and legal, then this would be a strong area for breach of contract against Tennessee. 

The final piece is restitution, or the restoration of any benefits the non-breaching party offered the other party. In this case SMS may seek to get the $50,000 guarantee returned if it was already paid. It is not clear in this scenario if this was received and restitution would not be held if not already paid. 

Although, SMS may pursue a breach of contract against Tennessee I do not think it will hold up with the evidence provided. The information states the 2019 season, but does not give an exact date and time.  Second, the example seems to be through phone calls, text messages, or emails as parts of a true contract were not included or stated. For these reasons I feel the University of Tennessee would fight that the contract never truly existed and attack the elements of a contract as being invalid because of it being a preliminary offer and not an actual contract. The scenario has too many gaps or lack of information for this to be considered a binding contract fitting all five elements.

In this instance it is important for the agreements to be in writing. By having the agreement in writing many of the issues such as date, time, covenants, and expectations would have been laid out, understood, and agreed upon. When dealing with matters this major it is important for it to be in writing. 

Finally, if Tennessee were to receive the death-penalty from the NCAA and drop their program they would defend an impossibility of performance against any breach of contract claims. This probably would not hold-up in court as the end result of having their program dropped was out of their control, the events leading up to this decision were controllable. 

Wong, G. M. (2010). Essentials of Sports Law, 4th Edition : Fourth Edition (Vol. 4th ed). Santa Barbara, Calif: Praeger. Retrieved from http://search.ebscohost.com.ezproxy2.apus.edu/login.aspx?direct=true&AuthType=ip&db=nlebk&AN=334226&site=ehost-live&scope=site