Business Law




Acontract is a binding agreement entered into by the parties involvedto obligations that must be fulfilled by the parties. Factors such asfinancial problems and other unforeseen events may hinder asuccessful contract, which then leads to a breach of contract. InPamela Anderson’s and Ben Efraim’s contract, it is not clear thatthere was a breach of contract between the parties. Pamela Leeallegedly backed off from an agreement that had already been enteredinto, to feature in a film to be produced by Ben Efraim. The contractwas a verbal agreement and therefore, needed a witness as there wasno substantial evidence to show its legal existence. It is clear theplaintiff cannot prove the direct loss suffered as a result ofAnderson’s withdrawal from the contract, and whether, she hadagreed to feature in the film as there is insufficient evidence.

Ina contract, every aspect must be spelled out to avoid futurecontradictions. From this case, it is evident that the contract ruleswere not fully followed which could have outlined the consequences ofany party that could breach the contract (&quotWORLD – US actressPamela Lee Wins Lawsuit&quot, 2016). The agreement also did notspecify the party to suffer the losses in case of termination of thecontract. Therefore, since there were no specific contract rulesbreached, the accused had no liability whatsoever to compensate theplaintiff.


Inthe United States today, lawsuits involve a lot of finance and timeand can take many years to come to actual trial, or to realizesettlement offers made. In most cases, the plaintiff may be requiredto pay his lawyer an hourly fee, which indeed is expensive.Businesses also suffer a big blow in publicity when regularly exposedto lawsuits. This may keep away potential customers who may not wantto be involved in a business that does not respect its pledges.Therefore, as a manager, to uphold the company’s integrity andcustomer’s confidence I could have advised the plaintiff to settlethe matter out of court by reaching an agreement with the accused, tocompensate him to some extent, for losses incurred due to herwithdrawal from the contract. This could reduce unnecessary, harmfulexposure of the company to potential customers and the generalpublic.


WORLD- US Actress Pamela Lee Wins The Lawsuit.(2016). 18 September 2016, from