A
designer of fancy furniture gives a dealer in Boston the exclusive right
for 10 years to sell furniture in Boston.It's also sold elsewhere.The dealer is allowed to sell other brands as
well.The dealer pays $100k
for the rights, plus a % of each sale.After two years, the dealer stops selling the
furniture.How would this
case compare to Wood v. Lucy, Lady Duff-Gordon?
The
dealer could argue that the consideration in this case was the $100k, not the reasonable efforts to sell the furniture.
The
designer could argue that it was an exclusive right so he is worse off
without reasonable efforts.Also, the $100k could be trivial
compared to the % he was expecting.
Wood
v. Lucy, Lady Duff-Gordon says that
you have to look at the entirety of the contract in order
to come to a conclusion.
In
this case, the jury found for the designer and awarded him $3M.The reasoned that the $100k was
trivial.
