The Contracts of Videocassettes of the Film Lady and the Tramp - Coursework Example

Ms Lee did not receive the whole $ 9 million nevertheless she settled the case with Disney and received a milestone settlement of almost $ 2.3 million that represented a portion of her part of the returns made from the sale of the video cassette on the film Lady and the Tramp. Ms Peggy Lee received nearly $ 3,500 for working on a film that may have earned millions of dollars. Therefore, the calculation of damages, according to Ms. Peggy Lee and her attorneys for the breach of contract that resulted in Disney's offer of a comparatively trivial amount of $ 381,000 involved the point that her interpretation of the contract with Disney was that she was eligible to 12.

5% of the profits made from the sales of the movie on DVD and videocassettes. Ms Peggy Lee had to convince the jury that the DVDs and video cassettes were not covered in her original contract with Disney for her to be entitled to far more money than the $ 381,000 that was calculated by Disney. The glitch for Ms. Peggy Lee and Disney was due to the fact that video cassette technology was not something that either party anticipated back in 1952 and the main concern in the case is whether the utilization of Ms Peggy Lee's songs and her voice on the videocassettes was not ratified in the language contained in the initial contract.

If Ms Lee prevails, the court will allow her prejudgment interest at the rate of 8 per cent. This would cover three years that are from February 28, 1988, until the judgment date that is March 1, 1991.