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Wood v. Lucy, Lady Duff-Gordon
Question 1
In the case Wood v. Lucy, Lady Duff-Gordon, the defendant gave the plaintiff the authorization to license her name to prospective brands for a fifty percent share of the profits. The express terms were that Wood would have exclusive rights over the licensing. The express terms clearly stated that the plaintiff would have exclusive rights over the licensing process and would remit fifty percent of the profits to the defendant. For that reason, proper interpretation of this portion of the contract would have effectively resolved the conflict. Therefore, Judge Cardozo did not imply a term but merely provided an interpretation for the term set out in the contract.
Question 2
Judger Cardozo argued that because Wood had promised to render all the accounts and to give the defendant fifty-percent of the profits, then this was a promise that the plaintiff would use reasonable effort to ensure that the agreement was implemented. With regard to the interpretation of a business contract, interpretation cannot occur such that the final verdict varies from what parties to the contract intended. Therefore, Lady Duff-Gordon is at the mercy of Wood because upon interpretation of the contract Judge Cardozo concluded that the verdict reflected the initial intentions of the parties. The idea that the interpretation of a contract cannot vary from what the parties to the contract had initially intended is the “Business Efficacy” to which Judge Cardozo is alluding.
Question 3
Because Mr. Wood’s promise to sell was accompanied by a commitment to use reasonable effort, it would be considerably difficult to establish if there was a breach of contract. However, the requisite questions would consider if Mr. Wood had provided the monthly statements concerning the selling efforts.
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