Solved

Tom Shanks Sign a Contract to Make a Film for GMG

Question 49

Multiple Choice

Tom Shanks sign a contract to make a film for GMG Pictures for $20,000,000. The contract was not under seal. Part way through filming, he gets an offer to make another film for even more money, but production is starting immediately. He tells GMG he requires another $2,000,000 to complete their picture, or he'll walk. Is GMG legally bound to pay?


A) Yes. GMG cannot rely on their promise to pay $20,000,000. That is past consideration.
B) Yes. Preventing Shanks from taking the other job is restraint of trade.
C) Yes. Because the contract was not under seal, the consideration flowing from GMG was not valid.
D) Yes. Shanks can rely on the doctrine of detrimental reliance: he relied, to his clear ability to make another picture.
E) No. Shanks was given consideration to make the picture for GMG and has no right to demand more money now.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents