Reasonable efforts to promote and sell slimline diet drink

Reference no: EM133682540

Question

Slimline and Distributor signed a contract providing that Distributor would use reasonable efforts to promote and sell Slimline's diet drink. Slimline was already being sold in Warehouse Club. After the contract was signed, Distributor stopped conducting in-store demos of Slimline. It did not repackage the product as Slimline and Warehouse had requested. Sales of Slimline continued to increase during the term of the contract. Slimline sued Distributor, alleging a violation of the agreement. Who should win? "Reasonable" in the contract means a-an honest effort to meet both the spirit and letter of the contract b-ordinary or usual under the circumstances c-that one party has an absolute right to make a decision on the issue 2. Distributor's best defense is a-that its obligations under the contract were ambiguous b-that the contract was vague c. that it acted in good faith 3. Did Distributor act in good faith? a-yes, because sales of Slimline continued to increase b-No, because it did less work once it had signed the contract and did not meet the terms of the agreement c-No, because the contract was too vague to be enforceable 4. Distributor a. can b. can not successfully defend itself based on the fact that Slimline sales increased. 5. In order to make it easier to defend itself against this type of claim, Distributor could have written in the contract a-that the contract was fully integrated b. that it had sole discretion to determine what efforts it should make in

Reference no: EM133682540

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