California State University, Northridge - BUS 302

1)Facts: VIP Motion pictures, which is famous for making hit ideal adventure and action movies for kids and young adults, produced a series of five movies called the Super Fighters (I, II, III, V, IV). The VIP Motion advertised that if anyone wants to show the hit movie they must show all the movie series. VIP Motion entered into a five million dollar contract with Plex Media stating that VIP Motion’s hit movies Super fighters I, II, III, V, IV will be shown at the Plex Media theaters and Plex Media will be handed all the exclusive screening rights and licenses for all five movies. The contract was finalized when VIP Motion received $2,500,000 from Plex Media upon signing the contract. According to the contract, VIP motion received the rest of the payment of

$2,500,000 on September 1^st, 2006 and Plex Media sent checks to VIP motion paid $500 for each film showing in the each of their locations via checks. With all the payment to VIP motion, Plex media also sent an audit report detailing number was shows displayed as of December 31^st, 2006 in each of their theater.

In March 2007, A movie theater in Canada was advertising for the same movie series that was only contracted between Plex Media and VIP motion. Plex Media sent a demand notice to VIP Motion demanding to return all the payments that were sent to VIP motion as part of the contract attaching a clip of newspaper with the advertising for the movie series in Canada giving the proof that VIP motion conducted a breach of contract.

Legal Analysis.

1. Was a contract formed?

2. VIP’s argument_________

3. Plex Media Argument: