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Cranbrooke Company Vs Intelex Case Study

2778 Words12 Pages

This paper is dedicated to the arbitrary case between Cranbrooke Company (plaintiff) v. Intellex (defendant). Intellex, Incorporated (hereinafter Intellex) is an American company which is working on the development and production of video games decks and cartridges. Intellex was operating only on the American market and when it made its reputation in US and occupied American market with its video games products, the company eventually decided to try to explore European market as well. In order to get into the market, Intellex tried to find a company which is based in Europe to issue the license of distributing the video game decks and cartridges within the whole Europe. After brief research they decided to choose Cranbrooke Industries, PLC …show more content…

They came to conclusion that this is counter offer from Cranbrooke and Intellex did not accept it. It seems that, what Intellex tried to do is just formally give a notice about the new contract with other company to the Cranbrooke, because they are legally obliged to do so in accordance with the paragraphs 9 and 10 of the initial agreement with Cranbrooke. But it is only formal gesture: at the end Intellex really did their best, so Cranbrooke would not be able to match all terms of the contract. We can notice it from the correspondence between Intellex and German company CGAG, where CGAG offers to transforms their offices located in Eastern Europe into the repair offices, but at the same time underline that this is only the clause in the contract in order to avoid a deal with Cranbrooke. In reality, the make repair offices it will take a period of time. This proves again that Intellex did not really care about the terms and conditions of the contract; all they needed is not to license Cranbrooke to distribute Smartplug2 video games products. The conditions in which Intellex put Cranbrooke were tricky in a way and Cranbrooke being under the pressure still agreed to the terms of the contract and made just little changes, which can count as they exceeded the actual terms, but Intellex declined it, just because they wanted to get rid of the Cranbrooke. With no doubts Intellex caused obstacles to effectively use Cranbrooke’s right to first refusal. They breached the terms of the contract, since they did not agree to license the distribution of the Smartplug2 to the

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