Ford vs John Cena - Ford GT

[KR Convertible]

Ron Pratte donated his FGT to Ray Evernham's charity and it was sold with Ford's blessing at Barrett-Jackson last month for $2.5M.

[Don Johnston]

Not sure all went to charity.  And charity will be an approved exception and be sold for silly numbers.

[deathsled]

Contract law:

The general rule of contract law:  All ambiguities are construed against the drafter of the instrument.

Outcome:  If the court chooses to follow this maxim, then Ford loses.

Competing rule of contract law:  If there are ambiguities, some courts will disregard the parol evidence (a rule that excludes evidence of details before final contract formation) and allow extrinsic evidence in to show the intent of the parties though it was not reduced to a writing.  In essence, the court will look outside the four corners of the contract and allow extrinsic evidence in to determine the intent of the parties.

Outcome: Ford may win.

Damages: Court may award Ford compensatory damages depending on how the complaint is drafted.  And therefore may get the profit from the sale.

Cena can assert the affirmative defense that the language is boilerplate and therefore will not be given force and effect and further that it interferes with the freedom to contract.

Richard E.