“Do these facts satisfy the requirements for an implied contract|My homework helper
Posted: February 3rd, 2023
Business Scenarios and Case Problems 11-3 (page 229): Spotlight on Taco Bell – Implied Contract. Assignment is to prepare a written response to the following question: “Do these facts satisfy the requirements for an implied contract? Why or why not?”
11–3. Spotlight on Taco Bell—Implied Contract. Thomas Rinks and Joseph Shields developed Psycho Chihua-hua, a caricature of a Chihuahua dog with a “do-not-back-down” attitude. They promoted and marketed the character through their company, Wrench, L.L.C. Ed Alfaro and Rudy Pollak, representatives of Taco Bell Corp., learned of Psycho Chihuahua and met with Rinks and Shields to talk about using the character as a Taco Bell “icon.” Wrench sent artwork, mer-chandise, and marketing ideas to Alfaro, who promoted the character within Taco Bell. Alfaro asked Wrench to propose terms for Taco Bell’s use of Psycho Chihuahua. Taco Bell did not accept Wrench’s terms, but Alfaro continued to promote the character within the company. Meanwhile, Taco Bell hired a new advertising agency, which proposed an advertising campaign involving a Chi-huahua. When Alfaro learned of this proposal, he sent the Psycho Chihuahua materials to the agency. Taco Bell made a Chihuahua the focus of its marketing but paid nothing to Wrench. Wrench filed a suit against Taco Bell in a federal court claiming that it had an implied contract with Taco Bell and that Taco Bell breached that contract. Do these facts sat-isfy the requirements for an implied contract? Why or why not? [Wrench, L.L.C. v. Taco Bell Corp., 256 F.3d 446 (6th Cir. 2001), cert. denied, 534 U.S. 1114, 122 S.Ct. 921, 151 L.Ed.2d 805 (2002)] (See Types ofContracts.)
SOLUTION
An implied contract is a contract that is not expressed in writing or orally, but is inferred from the conduct of the parties involved. The existence of an implied contract is determined by looking at the actions and circumstances surrounding the parties’ relationship. To determine whether the facts satisfy the requirements for an implied contract, the following elements must be considered:
- Offer and acceptance: There must be evidence of a mutual agreement between the parties, which can be inferred from their actions and conduct.
- Consideration: There must be something of value given by one party in exchange for the promise of the other party. This can be a promise, performance, or forbearance.
- Mutual intent: The parties must have intended to enter into a binding agreement, as evidenced by their conduct.
Without knowing the specific facts in question, it is impossible to determine whether the requirements for an implied contract are satisfied.
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