What were the terms of the contract that was formed between the parties?

Gracey’s is a large department store chain, having stores all over the United States. Gracey’s, along with Classic Productions, sponsors a talent search for the lead in a new rendition of the musical “Oliver.” Gracey’s publicized the search in local newspapers calling it “Where Dreams are Realized—Th e Search for Broadway’s New Oliver.” Th e ad stated: If you are a boy between the ages of 7 and 11 years old, you could star in the Broadway production of “Oliver.” Get an application at any Gracey’s store and bring it to the auditions at our fl agship store in Philadelphia. Th e director will pick one lucky actor for callbacks in New York. Th e production will tour on the road and then open on Broadway. Katherine picked up an application for her son, Marcus. On the back side of the application the “Offi cial Rules” were set forth. One of the rules stated that “If a contestant/participant is chosen, it is within the sole discretion of the Broadway Company to determine contestant/participant’s suitability to perform on Broadway.” Additionally, the rules stated “Th e Producers or Gracey’s makes no representations as to whether the winner of the contest would perform on Broadway or a road production only that the winner would be given the opportunity to perform in front of the Producers.” Marcus made it through the Philadelphia auditions and was asked to perform before the New York producers along with other children from around the country. After two days of auditions, Marcus was chosen to be the new Oliver. Gracey’s announced Marcus’s success to the public. Th rough his parents, Marcus signed a standard contract which stated that the producers reserve the right to replace Marcus so long as he is paid through the term of the contract. Marcus played Oliver during the road tour run, but one month before the musical was to open on Broadway, the producers informed Marcus that his services would no longer be needed. Marcus’s mom sued the producers and Gracey’s. a. What claims in contract does Marcus have against the producers and Gracey’s? What are the defenses from Gracey’s and the producers? b. What were the terms of the contract that was formed between the parties? c. Marcus’s parents claim that the contract was ambiguous. What is the basis of such a claim? Discuss the issues that may apply. As part of your analysis, examine what is required under a claim of ambiguity.

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