Jamess designer gowns and accessories to upscale boutiques


Elizabeth James is an exclusive fashion designer. James has entered into a contract with Maria wherein Maria acts as a sales agent to sell James's designer gowns and accessories to upscale boutiques in high fashion markets. Maria earns a commission of 4% on her sales. Maria enters into negotiations with the renowned bridal boutique Kleinfeld's in Manhattan for their purchase of 100 designer wedding dresses from James. The contract is valued at $1,400,000. Maria had been working on the Kleinfeld's deal for 5 months when her agency contract was suddenly terminated by James. Three months after Maria's termination, Elizabeth James signed a contract to sell Kleinfeld's 100 designer wedding dresses under the similar terms that Maria had previously negotiated. When Maria learns of the Kleinfeld contract, she demands that James pay her the 4% commission on the sale. James refuses. Maria comes to you for legal advice. How strong is Maria's claim? Explain.

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Operation Management: Jamess designer gowns and accessories to upscale boutiques
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