Question

When Scott Calvin (Tim Allen) tries on a Santa suit, he discovers that he has assumed all of Santa's responsibilities. Calvin tries to challenge his acceptance of the terms of the agreement. Analyze the problem with offer, acceptance, and terms in very fine print (a magnifying glass is required.) Do the terms of the suit contract apply when Calvin did not know them at the time he put on the suit?

If you haven't seen this movie yet or don't recall some of the details, you may want to view it or rent it from a source like the library, video rental, etc.

business law

Answer 1

The card Scott found in Santa’s suit states:

‘In putting on the suit and entering the sleigh, the wearer waives any and all rights to any previous identity, real or implied, and fully accepts the duties and responsibilities of Santa Claus in perpetuity until such time that wearer becomes unable to do so by either accident or design.’

The clause was in red, very fine print around the edge of the card. It is stated that Scott has 11 months to get his affairs in order and is supposed to go back to the North Pole by Thanksgiving.

To render a contract legally binding, there are 5 essentials:

• offer and acceptance;
• intention to create a legal relationship;
• consideration;
• capacity;
• enforceability

Offer and Acceptance

In the movie, the offer is for someone to become Santa Claus by putting on the suit and climbing on to the sleigh. When Santa falls off the roof, Scott retrieves the card with the ‘Santa clause’.

When he puts on the suit and climbs on to the sleigh, he indicates acceptance. However, he did not see the fine print and was not reasonably made aware that putting on the suit and entering the sleigh meant accepting the offer to become Santa permanently.

Intention to create contract

It is likely that the contract was meant to be binding when Santa wrote it. However, Scott was not made aware of the terms.

Consideration

While scott will be taking on the roles and responsibilities of Santa, there is no consideration from the elves or Santa.

Capacity

Neither Santa nor Scott are minors,and are entitled to enter into contracts in their capacity as fully consenting adults.

Validity and enforceability

The clause contains a lot of uncertainties as to time frames, the meaning of 'design', when and how the wearer is to assume the identity of Santa, and does not have a forseeable end. So it is likely not enforceable.

Hence, the contract is not legally binding, and Scott may return home in peace.