John Cena recently bought the new Ford GT. But this wasn’t just any regular car purchase. No, sir or ma’am. Ford only plans to make 1,000 GT’s. GT purchasers applied to buy the car. And Cena had to tell Ford why he loves Ford and why he would make a great GT owner.
Cena also agreed to keep the car for at least 24 months before selling the car.
The famous wrestler sold the car approximately one month after buying it. So, even though he paid over $400,000 for this car, he breached the contract by selling it 23 months too soon.
What is “breach of contract?”
A contract is a formal promise made between two or more people. The courts look for four things when deciding if a contract is legal. (1) Was an offer made? (2) Was the offer accepted? (3) What consideration did the parties give (money)? (4) Is the contract written?
In this case, Ford offered to let Cena purchase the new GT. Cena accepted the offer. Cena paid for the car. The contract is in writing.
Check, check, check, and check.
Breach of contract happens when one of the parties doesn’t follow the agreement. Sometimes a breach happens when one party doesn’t pay as much as they agreed to. Other times, a breach happens when a product is delivered late or broken. The point is, though, that the court will back you up if someone breaks your deal.
What does Ford want?
Ford wants all the profit that John Cena got when he sold the GT. It also wants damages for a lot of imaginary benefits they “lost” out on when our wrestler friend sold the car.
The basic argument is that Ford deserves damages because lots of other people wanted to buy this car and they missed out on the opportunity because Cena bought it instead of someone else.
But that is exactly the point!
Ford isn’t suffering at all because there is so much demand for the GT that it is taking applications from buyers. Ford is hand-picking every person that buys the GT. So what did Ford lose when John sold the car?
Nothing. In my humble opinion, Ford lost nothing.