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Bilateral Contract: Real Life Scenario

Updated on June 15, 2013

Scenario:A promoter promising to do a concert for a charity and then after completion of the concert, the promoter decides to not give the proceeds as promised. In the mean time of the preparation, the charitable group started building a center with the idea of anticipated proceeds.

The promoter does not have the ability to void the contract or get out of it. “The contract comes in to existence at the moment the promises are exchanged”(Miller & Hollowell, 2011). One may look at the contract as one sided because there is not tangible consideration, however one could argue that publicity for the concert would benefit the promoter in intangible ways.

Another rule that would apply to this scenario is intent and object theory of contracts. “The theory is that a party’s intention to enter into a contract is judged by outward, objective facts as interpreted by a reasonable person, rather than party’s own secret, subjective intentions” (Miller and Hollowell, 2011). One could argue that the promoter did not come into the contract with proper intent and was planning to take advantage of the charity by using their name to make monies on the concert.

So by any means of the law, the promoter must make good on their part of the contract. The charity did their part by allowing advertising and promotion in their name. The promoter was probably paid for their duties in the concert and should not be unjustly enriched.


Miller, R & Hollowell, W (2011) Business Law. Text and Exercises. 6th Edition


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