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You are fresh out of graduate school, and you take a management job with Cowtown Casino Management (CCM). CCM builds, manages, and sells rural casinos throughout America.
CCM has contracted with Big Builder (BB) to build a casino. CC and BB have done business for years, and the contract is done over the phone, with an agreement to reduce the contract to writing later. BB builds casinos quickly, often within a matter of months.
BB later emails you what it calls the written contract for the casino. You scan the document, and you see some things that concern you.
Among other things, the document states that if gambling becomes illegal, BB’s duties are deemed satisfied, and will still owe BB a minimum of half the contract price. The document further states that if BB is late finishing the casino, BB will owe CC 25% of the agreed-upon lost profits for every day the casino is late. These terms are different than prior contract terms between CCM and BB, and you don’t recall agreeing to change those terms.
You remember enough from this course to know you need to contact CCM’s attorney. Identify all the issues, and your perceived strengths and weaknesses of those issues, that you want to discuss with the attorney. Also, discuss any ethical issues raised in this scenario.
