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Question by BuddhaDragon: Please help! Breaching Contract questions?
Hello Everyone! I need a little help in the Business Law department. My source is Forbes.com and the article I am using to answer certain questions is pasted below the following questions I have to answer. First, I have to answer what kind of defenses the defendant (Charlize Theron) could use in this case? I then have to answer what remedies may be available for the plaintiff (Weil) as a result of Charlize Theron breaching this contract?

So far, I have a few things to use in Theron’s defense but I am not sure if I am right in my reasoning. So I am reaching out to the general public. What do you think would be a good defense for Theron? and What are some remedies that the Plaintiff could get?Here is the article:

Theron Sued For Wearing Jewelry
Lacey Rose, 10.01.08, 7:03 PM ET

Hollywood has been very good to South Africa native and Oscar winner Charlize Theron.

Never mind the starring roles and constant accolades, the model-turned-movie star has been lavished with pricey gifts from Cartier, banked six figures to wear high-end jewelry from Chopard and was paid millions more to endorse Swiss jewelry-maker Raymond Weil’s high-end watches.

But if Weil has his way, the good life as it stands will not continue. The luxury watchmaker has sued the 33-year-old actress, who appeared opposite Will Smith in this summer’s blockbuster Hancock, for breach of contract. He claims she violated the terms of her 18-month endorsement deal with his company by being photographed in a competitor’s wares. A request for comment from Theron’s publicist wasn’t immediately returned.

According to court documents dug up by The Smoking Gun, the $ 3 million deal said the actress would exclusively wear Weil’s watches between October 2005 and December 2006. Additionally, she was barred from endorsing or advertising jewelry for any other person or company during that period. In exchange, the watchmaker was granted the right to use the actress’ name, image and endorsement in advertisements.

Meanwhile, says a judicial decision filed in U.S. District Court in New York, Theron had an endorsement deal to promote Dior’s J’Adore perfume and was captured on film and in still photographs posted on Dior’s Web site wearing jewelry designed specifically for the campaign.

Among other instances during the 18-month span, Theron was photographed at a film festival wearing a watch from the Christian Dior line and captured on a sizable billboard in Geneva, Switzerland, sporting Montblanc jewelry.

The Sept. 30 filing also revealed Theron was paid $ 200,000 to don Chopard baubles to the 2006 Oscars, and another $ 50,000 to sport gems at the same year’s BAFTA Awards in London. And though she wasn’t paid to wear Cartier jewels to the 2006 Golden Globe Awards, she had previously received a $ 35,000 ring, $ 8,000 earnings and a $ 7,000 bracelet from the luxury company.

The New York District Court judge dismissed portions of Weil’s suit but advised both parties to take part in a pre-trial settlement conference later this month.

Best answer:

Answer by Eric H
Well, the Judge doesn’t think she has very good defenses, or he wouldn’t have advised the pre-trial settlement conference – that’s a hint that he thinks they should settle.

There could be all sorts of problems with the contract – it’s authenticity could be in question, it may not have been properly witnessed, she could claim that her signature was forged and make Weil prove it was her signature.

The language of the contract will be critical. If there is ANY ambiguity, the rule of contra-proferentum could act against the drafter of the agreement.

Since the contract prohibits certain actions, it must explicitly set out all of the actions that are prohibited. The Judge might find, in absence of a declaration that the contract applies to the world, that it only applies to competition in the US.

A good lawyer could tie this guy up in knots.

Add your own answer in the comments!