Charlize Theron Breach of Contract Lawsuit
Professor Navarro - LS311: Business Law I
Unit 5: Contracts: Part II
By: Monique Dallas-Upshaw
January 10, 2013
In this case, Charlize Theron has a $20 million breach of contract lawsuit against her. The suit was filed, when Swiss watchmaker Raymond Weil claimed that Theron had worn a Christian Dior watch during a press event in 2006, despite being paid "substantial funds" to exclusively wear Raymond Weil timepieces during the time in question. Even though Theron has settled the lawsuit (according to papers filed in Manhattan Federal Court), I intend to show how the contract was allegedly breached. Furthermore, I will explain ...view middle of the document...
Now, Raymond Weil timepieces are denied the fruits of their endorsement advertising, along with the money they paid to Charlize Theron for that particular purpose/ moment in time.
Charlize Theron may have a possible defense in this particular case. I just do not have a lot of information when it comes to this case. One thing would be was the contract still in effect during the time of the event? Was this a written or oral contract? According to the one-year rule, contracts that cannot, by their own terms, be performed within one year from the day after the contract is formed must be in writing to be enforceable ( Miller, R., & Jentz, G., 2008, pg. 209)
What exactly are the terms of exclusivity? Was the wording of the contract correct or any mistakes made unilaterally or bilaterally? I do think that she could say that it was a mistake! Charlize is a celebrity and for the most part she has other people that are in control over getting her prepared for press releases and events. Therefore, it could have been a simple mistake of grabbing the wrong watch.
As far as the plaintiff, I think that he could simply sue Charlize for at the very least what they paid her to wear their product. I personally think that it should be more because it was a part of advertising that would generate some additional revenue. Lastly, I guess he could also cancel his contract with her (due to her contract breach) and still on top of that pursue her for the damages that she caused.
In conclusion, every case has a cause of action and a defense. Even though this case may be settling, Charlize does have some possible defenses that she could consider. The plaintiff in this case also has a few remedies that are available to them. This was a really interesting and somewhat complex case but, I welcomed the challenge of analyzing it.
Miller, R., & Jentz, G. (2008), Fundamentals of business law part I. Boston, MA: Cengage.
Ryan Pienciak (2008) Charlize Theron Settles $20 Million Lawsuit, People Magazine