First Principles of Business Law

Case study: Galactica
 

The facts

 

 

Tyler, a concert promoter, is promoting an Australian production of the musical show Galactica. Sunny, a young singer aged 18, attends an audition in Melbourne for the part of Heroa, the lead female role. Tyler tells Sunny: "Ours will be a first-class production. We are in the process of signing Georgie Ripper, the famous American singer, for the male lead role. The show will be well advertised and will draw huge audiences." After the audition Tyler offers Sunny the part of Heroa. Sunny asks: "Are you sure that Georgie will take part?" Tyler replies: "As far as we can tell, he is very interested." Sunny then signs a contract to play the part of Heroa for a 2% share of the ticket sales. The contract contains all the usual terms for a contract of this type but does not mention Georgie Ripper.

 

 

Tyler pays Sunny a $5000 advance on her earnings. One week later Georgie Ripper informs Tyler that he has decided against taking a part in the Australian show. Tyler tells his Australian performers that Bruce Smith, a local singer, will now play the male lead and that the production will have to be considerably scaled down. This is bound to have an impact on the success of the show. Sunny is disappointed and tells Tyler that she no longer wants to play the role of Heroa but Tyler insists she is contractually bound to perform. Tyler appoints Paul as his Tour Coordinator, instructing him to organise a country-wide tour of the show by negotiating joint venture agreements on Tyler's behalf with various theatre owners. Tyler gives Paul promotional materials to pass on to the theatre owners. The main advertisement for the show looks like the one opposite. Barnie, one of the theatre owners to whom Paul gives this material, thinks that people who don't read the advertisement carefully will expect to see Georgie Ripper in the show.

 

 

 

 

 

 

 

 

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