Contracts : cases, discussion, and problems / 3rd ed.

Table Of Contents:

Preface xxxiii
Acknowledgments xxxix
Authors' Note xli

1 Introduction to Contracts 1(36)

A An Introduction to the Study of Contract Law 1(17)

1 The Legal Definition of Contract 1(1)

2 The Sources, Nature, and Traditions of Contract Law 2(3)

3 The Doctrine of Precedent and Case Analysis 5(6)

4 The Role of Scholarly Commentary 11(2)

5 Theoretical Perspectives on Contract Law 13(4)

6 International Perspectives on Contract Law 17(1)

B What Makes an Agreement into a Contract 18(9)

Cohen v. Cowles Media Co. 20(2)

Questions 22(1)

Pierce v. The Clarion Ledger 23(2)

Questions 25(1)

Problem 1.1 26(1)

C The Enforcement of Contracts: An Introduction to Remedies 27(10)

1 Damages or Specific Performance: An Introduction to the Distinction Between Law and Equity 28(1)

Kilarjian v. Vastola 29(4)

Questions 33(1)

2 Expectation Damages 33(1)

Questions 34(1)

Problem 1.2 35(1)

3 The Method of Enforcing an Award of Damages 35(2)

2 Sales of Goods 37(22)

A An Introduction to Article 2 37(6)

1 The Creation of the Uniform Commercial Code 37(2)

2 The UCC Provisions Covered in This Course: Articles 1 and 2 39(1)

3 Revisions of the UCC 39(1)

4 The Style and Jurisprudence of the UCC 40(1)

UCC 1-103(a). Construction of [Uniform Commercial Code] to Promote Its Purposes and Policies... 40(1)

5 Working with Article 2 41(1)

6 The Organization of Article 2 and the Citation of Code Sections 42(1)

7 The Official Comments to the UCC 42(1)

B The Scope of Article 2 43(8)

Pass v. Shelby Aviation, Inc. 43(4)

Question 47(1)

Note on the Alternative Tests for Deciding Scope 48(1)

Note on Why It Might: Matter to Decide Scope 48(2)

Problem 2.1 50(1)

C The Applicability of Article 2 to Sales of Intangible Rights, Especially Software and Other Intellectual Property 51(5)

Conwell v. Gray Loon Outdoor Marketing Group, Inc. 52(3)

Questions 55(1)

Problem 2.2 55(1)

D Merchants and Article 2 56(1)

UCC 2-104(1). Definitions: "Merchant"... 56(1)

Problem 2.3 57(1)

E International Sales of Goods and the CISG 57(2)

3 Contractual Assent and the Objective Test 59(36)

A The Objective Standard for Determining Assent 59(9)

Morales v. Sun Constructors, Inc. 61(3)

SR International Business Insurance Co., Ltd v. World Trade Center Properties, LLC 64(3)

Problem 3.1 67(1)

B The Determination of Objective Meaning: The Reasonable Person Construct 68(1)

Problem 3.2 68(1)

C The Duty to Read 69(7)

James v. McDonald's Corporation 69(3)

Questions 72(2)

Note on Standard Contracts and Arbitration Provisions 74(1)

Note on "Boxtop" and "Shrinkwrap" Terms 74(1)

Problem 3.3 75(1)

D Notice of and the Duty to Read Standard Terms in a Web-Based Transaction: Clickwrap and Browsewrap Terms 76(8)

Hoffman v. Supplements Togo Management, LLC 76(8)

E Bad Jokes 84(11)

Lucy v. Zehmer 84(5)

Leonard v. PepsiCo, Inc. 89(6)

4 The Offer 95(28)

A The Process of Contract Formation 95(2)

1 The Offer and Acceptance Model 95(1)

2 An Overview of the Process of Contract Formation 96(1)

B The Nature and Qualities of an Offer 97(12)

1 The Definition of "Offer" at Common Law 97(1)

2 Offers Under UCC Article 2 97(1)

UCC 1-103(b)....Applicability of Supplemental Principles of Law 98(1)

UCC 2-204. Formation in General 98(1)

3 Interpreting the Intent of a Communication to Determine Whether It Is an Offer 98(1)

Fletcher-Harlee Corp. v. Pole Concrete Contractors, Inc. 99(3)

Babcock & Wilcox Company v. Hitachi America, Ltd. 102(6)

Questions 108(1)

Problem 4.1 108(1)

Problem 4.2 109(1)

C Is an Advertisement an Offer or a Solicitation? 109(10)

1 What Makes a Proposal an Offer Rather than a Solicitation? 109(3)

Leonard v. PepsiCo, Inc. 112(2)

Questions 114(2)

Problem 4.3 116(1)

2 The Impact of Legislation on the Interpretation of Advertisements 116(1)

3 The Remedial Issues in Lefkowitz, Harris, and Leonard 117(1)

Question 118(1)

D Offer and Acceptance Through Electronic Media, Especially by Automated Means (Electronic Agents) 119(1)

E Offers Under the UNIDROIT Principles and CISG 120(3)

5 Acceptance 123(46)

A General Principles of Acceptance 123(8)

Restatement, Second §30. Form of Acceptance Invited 123(1)

UCC 2-206(1)(a). Offer and Acceptance in Formation of Contract 124(1)

1 The Acceptance Must Be Communicated to the Offeror 124(1)

2 The Acceptance Must Be in Compliance with Any Instructions in the Offer Relating to the Manner and Method of Acceptance 125(1)

3 The Acceptance Must Not Vary the Terms of the Contract Proposed in the Offer 126(1)

4 The Acceptance Must Occur While the Offer Is Still in Effect-Lapse or Termination of the Offer 127(1)

5 The Effective Date of Acceptance and the "Mailbox" Rule 128(2)

Problem 5.1 130(1)

Problem 5.2 131(1)

B Interpretation of the Substantive and Procedural Requirements of Acceptance 131(9)

Roth v. Malson 131(5)

Questions 136(1)

Trinity Homes, LLC v. Fang 136(2)

Questions 138(2)

C Inadvertent Manifestation of Acceptance 140(4)

Anderson v. Douglas & Lomason Company 141(3)

Questions 144(1)

D Silence as Acceptance 144(5)

Pride v. Lewis 145(4)

E Revocation of an Offer 149(5)

Hendricks v. Behee 149(1)

Question 150(1)

Problem 5.3 150(1)

Dickinson v. Dodds 151(2)

Questions 153(1)

Problem 5.4 154(1)

F Acceptance by Performance: Unilateral Contracts 154(12)

1 The Distinction Between Unilateral and Bilateral Contracts 154(3)

Carlill v. Carbolic Smoke Ball Co. 157(1)

Questions 158(2)

Problem 5.5 160(1)

2 Performance as an Exclusive or Permissive Method, of Acceptance 161(1)

Problem 5.6 161(1)

3 Shipment as Acceptance of an Offer to Buy Goods 162(1)

UCC 2-206(1)(b). Offer and Acceptance in Formation of Contract 162(1)

Problem 5.7 162(1)

4 Communication of Acceptance by Performance 163(1)

5 Acceptance of an Offer by an Act That Cannot Be Accomplished Instantaneously 164(1)

Restatement, Second §45. Option Contract Created by Part Performance or Tender 164(1)

Questions 165(1)

Restatement, Second §62. Effect of Performance by Offeree Where Offer Invites Either Performance or Promise 165(1)

Problem 5.8 166(1)

G The Offer and Acceptance Model in Perspective 166(1)

H Acceptance Under the UNIDROIT Principles and the CISG 167(2)

6 Conflicting Standard Terms, the Battle of the Forms, and Late Notice of Standard Terms 169(38)

A The Common Law Approach to Conflicting Standard Terms 169(2)

B The Battle of the Forms---UCC 2-207 171(17)

1 The Rationale and Aim of UCC 2-207 171(1)

2 The Structure and Operation of UCC 2-207 172(1)

UCC 2-207. Additional Terms in Acceptance or Confirmation 172(5)

Lively v. IJAM, Inc. 177(2)

Polytop Corporation v. Chipsco, Inc. 179(4)

Problem 6.1 183(1)

Problem 6.2 183(2)

Problem 6.3 185(1)

Problem 6.4 186(1)

Problem 6.5 186(1)

Problem 6.6 187(1)

C Standard Terms Revealed After Goods or Services Are Ordered: "Cash Now, Terms Later," "Shrinkwrap" Terras, and "Rolling Contracts" 188(16)

ProCD, Inc. v. Zeidenberg 189(4)

Questions 193(2)

DeFontes v. Dell, Inc. 195(5)

Casavant v. Norwegian Cruise. Line, Ltd. 200(3)

Questions 203(1)

Problem 6.7 203(1)

D The UNIDROIT Principles and CISG Provisions on the Battle of the Forms 204(3)

7 Preliminary, Incomplete, and Indefinite Agreements 207(32)

A The Scope of This Chapter 207(1)

B Informal Preliminary Understanding Distinguished from Contract 207(11)

Brown v. Cam 207(5)

Cochran v. Norkunas 212(5)

Problem 7.1 217(1)

C "Agreement to Agree" and Deferred Agreement 218(7)

Arbitron, Inc. v. Tralyn Broadcasting, Inc. 219(5)

Problem 7.2 224(1)

Problem 7.3 225(1)

D The Problem of Indefiniteness or Vagueness in an Agreement 225(7)

Baer v. Chase 226(3)

Questions 229(2)

Questions 231(1)

Problem 7.4 231(1)

E Agreements to Bargain in Good Faith 232(5)

Brown v. Cara 234(2)

Questions 236(1)

F The Tort of Interference with Contract Relations: Liability for Enticing a Party to Breach a Contract or a Preliminary Agreement 237(2)

8 The Statute of Frauds 239(26)

A The Basic Principle 239(1)

B The Requirements of the Statute 240(3)

Restatement, Second §131. General Requisites of a Memorandum 241(1)

1 Writing or Record 241(1)

2 Signature 242(1)

3 Content 243(1)

C The Methodology of Applying the Statute 243(1)

D An Overview of the Six Types of Contract Covered by the Traditional Statute of Frauds 244(3)

1 Contracts to Answer for the Debt or Obligation of Another 244(1)

2 Contracts of Executors or Administrators to Answer for the Duty of Their Decedents 245(1)

3 Contracts Made upon Consideration of Marriage 245(1)

4 Contracts for the Sale of Land or the Transfer of an Interest in Land 245(1)

5 Contracts That Cannot Be Performed Within a Year of Execution 246(1)

6 Contracts for the Sale of Goods for the Price of $500 or More 246(1)

E Contracts at Common Law: Sales and Transfers of Land and Contracts Not Performable Within a Year of Execution 247(11)

1 Sales and Transfers of Land 247(1)

Problem 8.1 247(1)

Cooke v. Goethals 248(4)

Questions 252(1)

2 Contracts Not Performable Within One Year of Execution 252(1)

Mackay v. Four Rivers Packing Co. 253(3)

Questions 256(1)

Problem 8.2 257(1)

F The Statute of Frauds Relating to the Sale of Goods 258(4)

UCC 2-201. Formal Requirements; Statute of Frauds 258(1)

International Casings Group, Inc. v. Premium Standard Farms, Inc. 259(2)

Problem 8.3 261(1)

G The Approach of the CISG and UNIDROIT Principles to the Statute of Frauds 262(3)

9 Consideration 265(66)

A Consideration---The Basic Doctrine 265(28)

1 Introduction to Consideration Doctrine 265(1)

Restatement, Second §17. Requirement of a Bargain 266(1)

Restatement, Second §71. The Requirement of Exchange; Types of Exchange 267(1)

2 The Elements of Consideration 267(1)

Congregation Kadimah Toras-Moshe v. DeLeo 268(2)

Earner v. Sidway 270(3)

Questions 273(1)

Blackmon v. Iverson 274(4)

Questions 278(1)

Pennsy Supply, Inc. v. American Ash Recycling Corp. 279(5)

Questions 284(1)

Problem 9.1 284(1)

3 The Elusive Purpose of Consideration Doctrine 285(3)

Carlisle v. T&R Excavating, Inc. 288(5)

Questions 293(1)

B What Suffices as Consideration 293(23)

1 Adequacy of Consideration 294(1)

Kessler v. National Presto Industries 295(2)

Gottlieb v. Tropicana Hotel and Casino 297(6)

2 Preexisting Duties 303(1)

Restatement, Second §73. Performance of Legal Duty 304(1)

White v. Village of Homewood 304(2)

Questions 306(1)

Problem 9.2 307(1)

Questions 308(1)

3 Agreements to Settle Disputed Claims or Defenses 309(1)

Restatement, Second §74. Settlement of Claims 310(1)

Fiege v. Boehm 311(4)

Questions 315(1)

Problem 9.3 315(1)

C Mutuality and Its Limits 316(12)

1 Performance as Consideration 316(1)

Lucht's Concrete Pumping Inc. v. Homer 317(4)

Questions 321(1)

2 Promises as Consideration 321(1)

Problem 9.4 322(2)

Wood v. Lucy, Lady Duff-Gordon 324(2)

Questions 326(1)

3 Introduction to Exclusive Dealings and Output and Requirements Contracts Under the UCC 326(1)

UCC 2-306. Output, Requirements and Exclusive Dealings 327(1)

Problem 9.5 328(1)

D Consideration in the International Context 328(3)

10 Promissory Estoppel 331(52)

A An Overview of Promissory Estoppel 331(11)

1 The Origins and Nature of Promissory Estoppel as a Theory of Recovery 332(2)

Restatement, Second §90. Promise Reasonably Inducing Action or Forbearance 334(1)

2 The Theoretical Context of Promissory Estoppel and Why It Matters 334(2)

Matarazzo v. Millers Mutual Group, Inc. 336(6)

Questions 342(1)

B Use of Promissory Estoppel to Enforce Gratuitous or Charitable Promises 342(11)

Conrad v. Fields 344(3)

Questions 347(2)

Questions 349(1)

In re Morton Shoe Company 350(2)

Questions 352(1)

C Promissory Estoppel in the Broader Context of a Bargain 353(19)

1 Promissory Estoppel in Commercial Relationships 355(1)

Universal Computer Systems, Inc. v. Medical Services Assn. 355(3)

Questions 358(1)

2 Promissory Estoppel in Commercial Negotiations 359(1)

Garwood Packaging, Inc. v. Allen & Company, Inc. 360(4)

Questions 364(1)

3 Promissory Estoppel and the Statute of Frauds 364(1)

Restatement, Second §139. Enforcement by Virtue of Action in Reliance 365(1)

Questions 365(1)

McIntosh v. Murphy 365(5)

Questions 370(1)

Problem 10.1 371(1)

D Remedies in Promissory Estoppel Actions 372(11)

Tour Costa Rica v. Country Walkers, Inc. 374(6)

Questions 380(1)

Problem 10.2 380(3)

11 Options and Firm Offers 383(16)

A Option Contracts 384(2)

Problem 11.1 385(1)

B Promissory Estoppel and Offers 386(7)

Drennan v. Star Paving Co. 387(3)

Questions 390(2)

Restatement, Second §87. Option Contract 392(1)

Questions 392(1)

C Firm Offers Under the UCC 393(4)

UCC 2-205. Firm Offers 393(1)

Problem 11.2 393(1)

Brooklyn Bagel Boys, Inc. v. Earthgrains Refrigerated Dough Products, Inc. 394(2)

Questions 396(1)

D Provisions in the UNIDROIT Principles and CISG on the Revocability of Offers 397(2)

Questions 397(2)

12 Obligation Based on Unjust Enrichment and Material Benefit 399(22)

A Unjust Enrichment 399(16)

1 The Relationship Between Unjust Enrichment and Contract 399(1)

2 The Elements of Unjust Enrichment 400(2)

3 Terminology 402(1)

4 The Distinction Between Factually and Legally Implied Contracts 403(1)

Martin v. Little, Brown & Co. 404(3)

Questions 407(1)

Problem 12.1 407(1)

Problem 12.2 408(1)

Feingold v. Pucello 409(1)

Questions 410(1)

5 Volunteers and Intermeddlers 411(1)

Estate of Cleveland v. Gorden 412(2)

Questions 414(1)

Problem 12.3 415(1)

B The Application of Unjust Enrichment Principles to Promises for Past Benefits: The "Moral Obligation" and "Material Benefit" Doctrines 415(6)

Restatement, Second §86. Promise for Benefit Received 417(1)

Questions 418(1)

Problem 12.4 419(2)

13 Policing Contracts for Improper Bargaining 421(92)

A General Introduction to the Doctrines in This Chapter 421(1)

B Misrepresentation and Fraud 422(36)

1 The General Principles and Elements of Misrepresentation 422(2)

Restatement, Second §164. When a Misrepresentation Makes a Contract Voidable 424(1)

Restatement, Second §162. When a Misrepresentation Is Fraudulent or Material 424(1)

Restatement, Second §160. When Action Is Equivalent to an Assertion (Concealment) 424(1)

2 Affirmative Fraud 425(1)

Sarvis v. Vermont State Colleges 425(4)

Questions 429(1)

Psenicska v. Twentieth Century Fox Film Corp. 429(4)

3 Silence as Fraud: Fraudulent Nondisclosure and the Duly to Speak 433(1)

Restatement, Second §161. When Non-Disclosure Is Equivalent to an Assertion 434(1)

Kaloti Enterprises, Inc. v. Kellogg Sales Company 434(6)

Questions 440(1)

Stambovsky v. Ackley 441(4)

Questions 445(1)

4 Misrepresentation of Fact, Opinion, or Prediction 446(1)

Rodi v. Southern New England School of Law 447(5)

Questions 452(1)

Problem 13.1 452(1)

5 Misrepresentation of Intent 453(1)

Question 454(1)

Problem 13.2 454(1)

6 The Distinction Between Fraudulent and Negligent Misrepresentation 455(1)

7 The Choice of Remedy for Fraud; Punitive Damages 455(1)

8 Fraud in the Inducement Distinguished from Fraud in the Factum 456(2)

C Duress 458(11)

1 The Elements of Duress 458(1)

Restatement, Second §175. When Duress by Threat Makes a Contract Voidable 459(1)

Restatement, Second §176. When a Threat Is Improper 459(1)

Problem 13.3 459(2)

Germantown Manufacturing Co. v. Rawlinson 461(4)

Questions 465(1)

Problem 13.4 466(1)

2 Market or Circumstantial Pressure Distinguished from Duress 467(1)

Quigley v. KPMG Peat Marwick, LLP 467(2)

Questions 469(1)

D Duress and Bad Faith in Relation to Contract Modification 469(11)

1 The Interaction of Consideration and Duress Doctrines 469(2)

Austin Instrument, Inc. v. Loral Corp. 471(4)

Questions 475(1)

2 Supervening Difficulties as a Basis for Upholding a Modification Without Consideration 475(2)

Questions 477(1)

3 Contract Modifications Under UCC Article 2 478(1)

UCC 2-209. Modification, Rescission and Waiver 478(1)

Questions 479(1)

Problem 13.5 479(1)

Problem 13.6 480(1)

E Undue Influence 480(1)

F Unconscionability 481(29)

1 The Derivation and Meaning of "Unconscionability" 481(1)

UCC 2-302. Unconscionable Contract or Clause 482(1)

Restatement, Second §208. Unconscionable Contract or Term 483(1)

2 The Remedy Where a Contract or Term Is Found to Be Unconscionable 483(1)

3 The Elements of Unconscionability 483(1)

Note on Germantown Mfg. Co. v. Rawlinson 484(1)

Questions 485(3)

Questions 488(1)

Feldman v. Google, Inc. 489(4)

Lhotka v. Geographic Expeditions, Inc. 493(6)

Zuver v. Airtouch Communications, Inc. 499(7)

Questions 506(1)

Questions 507(1)

4 The Range of Unconscionability Doctrine 508(1)

Problem 13.7 508(1)

5 Unconscionability and the Prohibition of Class Actions 509(1)

G An International Perspective 510(3)

14 Policing Contracts on Grounds Other Than Improper Bargaining 513(48)

A Introduction 513(2)

B Illegality 515(5)

Note on The Diversified Group v. Sahn 515(2)

Question 517(1)

Danzig v. Danzig 517(2)

Questions 519(1)

C Contracts in Violation of Public Policy 520(18)

Woodman v. Kera LLC 520(11)

Syncom Industries, Inc. v. Wood 531(4)

Questions 535(1)

Problem 14.1 536(2)

D Incapacity 538(23)

1 Incapacity and Exploitation 538(1)

2 Minority 538(2)

Foss v. Circuit City Stores, Inc. 540(5)

Questions 545(3)

Problem 14.2 548(2)

3 Mental Incapacity 550(1)

Restatement, Second §15. Mental Illness or Defect 550(1)

In re Seminole Walls & Ceilings Corp. 551(4)

Questions 555(1)

Farnum v. Silvano 555(3)

Questions 558(1)

Problem 14.3 558(3)

15 Contract Interpretation and Construction 561(56)

A The Content of Contractual Obligations 561(2)

B Interpretation 563(34)

1 Sources of Contract Meaning 563(1)

Rycon Specialty Foods, Inc. v. Wellshire Farms, Inc. 563(4)

Questions 567(1)

Restatement, Second §202. Rules in Aid of Interpretation 568(1)

Restatement, Second §203. Standards of Preference in Interpretation 568(1)

UCC 1-303. Course of Performance, Course of Dealing, and Usage of Trade 569(1)

Terry Ban Sales Agency, Inc. v. All-Lock Company, Inc. 570(6)

Questions 576(1)

2 Interpretation of Written Agreements 577(2)

Guilford Transportation Industries v. Public Utilities Commission 579(3)

Questions 582(1)

Pacific Gas & Electric Co. v. G.W. Thomas Drayage & Rigging Co. 583(3)

Questions 586(1)

White City Shopping Center v. PR Restaurants, LLC 586(2)

Questions 588(1)

Problem 15.1 589(1)

3 Interpretation of Standard Contracts 589(1)

Atwater Creamery Co. v. Western National Mutual Insurance Co. 590(5)

Questions 595(1)

Problem 15.2 595(2)

C Construction of Contract Obligations 597(20)

1 Gap Fillers 598(1)

Restatement, Second §204. Supplying an Omitted Essential Term 598(1)

UCC 2-311. Options and Cooperation Respecting Performance 599(1)

Family Snacks of North Carolina, Inc. v. Prepared Products Co., Inc. 600(3)

Questions 603(2)

Question 605(1)

2 Using Good Faith to Interpret and Construe Contracts 605(2)

Questions 607(1)

Restatement, Second §205. Duty of Good Faith and Fair Dealing 608(1)

UCC 1-304. Obligation of Good Faith 608(1)

United Airlines, Inc. v. Good Taste, Inc. 608(6)

Questions 614(3)

16 The Parol Evidence Rule 617(44)

A Introduction to the Parol Evidence Rule 617(5)

B Application of the Parol Evidence Rule 622(29)

1 The Evolution of the Parol Evidence Rule 624(3)

Masterson v. Sine 627(5)

Questions 632(1)

2 Contemporary Approaches to the Parol Evidence Rule 633(1)

Myskina v. Conde Nast Publications, Inc. 633(5)

Questions 638(1)

Lopez v. Reynoso 639(5)

Questions 644(2)

Questions 646(1)

Problem 16.1 646(1)

3 Application of the Parol Evidence Rule Under the UCC 647(1)

UCC 2-202. Final Written Expression: Parol or Extrinsic Evidence 648(1)

Problem 16.2 649(2)

C Escape from the Parol Evidence Rule: Exceptions for Evidence of the Invalidity or Voidability of the Contract 651(7)

Sound Techniques, Inc. v. Hoffman 654(4)

Questions 658(1)

D Contract Interpretation and Parol Evidence Under the UNIDROIT Principles and the CISG 658(3)

Question 659(2)

17 Misunderstanding, Mistake, and Excuse Due to Changed Circumstances 661(50)

A Misunderstanding 662(5)

Konic International Corp. v. Spokane Computer Services, Inc. 664(2)

Questions 666(1)

Problem 17.1 667(1)

B Mistake 667(26)

1 Mutual Mistake 668(1)

Restatement, Second §152. When Mistake of Both Parties Makes a Contract Voidable 669(1)

Questions 669(1)

SCI Minnesota Funeral Services, Inc. v. Washburn-McReavy Funeral Corporation 669(6)

Questions 675(3)

Problem 17.2 678(1)

Problem 17.3 678(1)

Restatement, Second §154. When a Party Bears the Risk of a Mistake 679(1)

Estate of Nelson v. Rice 679(3)

Cherry v. McCall 682(2)

Questions 684(1)

2 Unilateral Mistake 685(1)

Bert Allen Toyota, Inc. v. Grasz 686(3)

Questions 689(1)

Note on Drennan v. Star Paving Co. 690(1)

Question 691(1)

3 Mistake in Expression and Reformation 691(2)

C Excuse Due to Changed Circumstances 693(18)

1 Impracticability 694(1)

Restatement, Second §261. Discharge by Supervening Impracticability 695(1)

CNA International Reinsurance Company, Ltd. v. Phoenix 695(2)

Questions 697(1)

UCC 2-615. Excuse by Failure of Presupposed Conditions 698(1)

Clark v. Wallace County Cooperative Equity Exchange 698(1)

Questions 699(1)

All Points Capital Corp. v. Boyd Brothers, Inc. 700(2)

Questions 702(1)

Problem 17.4 702(1)

2 Frustration of Purpose 703(1)

Restatement, Second §265. Discharge by Supervening Frustration 703(1)

Under v. Meadow Gold Dairies 704(5)

Questions 709(2)

18 Conditions and Promises 711(52)

A An Overview of the Components of a Contract: Conditions and Promises 711(13)

1 Identification of Promises and Conditions 712(2)

2 The Event That Constitutes a Condition Could Be Either Positive (an Even That Must Occur) or Negative (an Event That Must Not Occur) 714(1)

3 The Requirement of Uncertainty in Relation to Future Events and Past Events 714(1)

4 What Purposes Do the Parties Seek to Achieve in Including Conditions in the Contract? 715(1)

5 The Sequencing of Performance: Conditions Precedent and Concurrent Conditions 716(1)

6 The Arcane and Confusing Distinction Between Conditions Precedent and Conditions Subsequent 716(2)

7 An Introduction to the Distinction Between Express Conditions and Construed or Implied Conditions 718(2)

Question 720(1)

Problem 18.1 720(1)

8 Pure Promises, Pure Conditions, and Terms That Are Both Conditions and Promises (Promissory Conditions) 721(1)

9 Interpretation to Determine If a Term Is a Condition or Merely a Timing Provision 722(1)

Questions 723(1)

Problem 18.2 723(1)

B A Promise to Take Action to Try to Satisfy a Condition 724(9)

Phoenix-Talent School District #4 v. Hamilton 725(6)

Problem 18.3 731(1)

Problem 18.4 732(1)

C Substantial Compliance with Construed (or Implied) Conditions 733(8)

Jacob & Youngs, Inc. v. Kent 734(5)

Questions 739(1)

Problem 18.5 740(1)

D Conditions of Satisfaction 741(4)

Note on Incomm, Inc. v. Thermo-Spa, Inc. 743(1)

Problem 18.6 744(1)

Problem 18.7 745(1)

Problem 18.8 745(1)

E The Use of Conditions to Provide for Alternative Performances 745(1)

Problem 18.9 746(1)

F The Use of Conditions to Sequence Performances Where the Performance of One or Both Parties Will Not Be Instantaneous 746(3)

Problem 18.10 749(1)

Problem 18.11 749(1)

G Excuse of Conditions 749(14)

1 Waiver and Estoppel 750(2)

Note on Mercedes-Benz Credit Corp. v. Morgan and Gould v. Artisoft, Inc. 752(1)

Questions 753(1)

Problem 18.12 753(1)

2 Obstructive or Uncooperative Conduct 754(1)

Sullivan v. Bullock 755(2)

3 Unfair Forfeiture 757(1)

United Properties Limited Company v. Walgreen Properties, Incorporated 758(5)

19 Material Breach, Substantial Performance, and Anticipatory Repudiation 763(34)

A The Distinction Between Material and Nonmaterial Breach 763(9)

1 Material Breach 763(1)

2 Substantial Performance 764(1)

Restatement, Second §241. Circumstances Significant in Determining Whether a Failure Is Material 765(1)

Problem 19.1 765(1)

3 Total and Partial Breach and the Concept of Cure 766(1)

Raymond Weil, S.A. v. Theron 766(4)

Questions 770(1)

Problem 19.2 771(1)

B The Consequences of Substantial Performance 772(10)

1 The Usual Measure of Relief for Substantial Performance 772(1)

2 Relief for Substantial Performance Where the Cost to Rectify the Defective Performance Is Disproportionately High 773(1)

Lyon v. Belosky Construction, Inc. 774(1)

Questions 775(1)

3 The Recovery of the Breaching Party: Unjust Enrichment or Recovery Under the Contract 776(2)

Menorah Chapels at Millburn v. Needle 778(3)

Questions 781(1)

C Breach and Substantial Performance Under UCC Article 2: The Perfect Tender Rule 782(4)

1 Perfect Tender Under Article 2 782(1)

UCC 2-601. Buyer's Rights on Improper Delivery 782(1)

Problem 19.3 782(1)

2 Limitations on the Perfect Tender Rule 783(1)

Problem 19.4 784(2)

D Anticipatory Repudiation and Prospective Nonperformance 786(11)

1 Anticipatory Repudiation 786(1)

Restatement, Second §250. When a Statement or an Act Is a Repudiation 787(1)

Restatement, Second §253. Effect of a Repudiation as a Breach and on Other Party's Duties 788(1)

UCC 2-610. Anticipatory Repudiation 788(1)

Wholesale Sand & Gravel, Inc. v. Decker 789(1)

Problem 19.5 790(1)

2 Retraction of Repudiation 791(1)

3 Prospective Inability to Perform 792(1)

Restatement, Second §251. When a Failure to Give Assurance May Be Treated as a Repudiation 792(1)

UCC 2-609. Right to Adequate Assurance of Performance 792(1)

Problem 19.6 793(1)

Problem 19.7 794(3)

20 Introduction to Contract Damages and the "Benefit of the Bargain" 797(84)

A The Goal and Fundamental Principles of Contract Damages 797(13)

1 The Distinctions Among the Expectation, Reliance, and Restitution Interests 798(1)

Restatement, Second §344. Purposes of Remedies 799(1)

Hawkins v. McGee 800(3)

Questions 803(2)

Questions 805(1)

Problem 20.1 805(1)

2 Theoretical Perspectives on "Benefit of the Bargain" Damages 806(4)

B The "Benefit of the Bargain" at Common Law 810(24)

1 Components of Expectation Damages 810(1)

2 Introduction to Measurement of the Expectation Interest 811(1)

Restatement, Second §347. Measure of Damages in General 811(3)

Hubbell Homes v. Key 814(3)

Questions 817(1)

3 Measurement of the Expectation Interest When Neither Party Performs 818(1)

Turner Broadcasting System, Inc. v. McDavid 819(4)

Questions 823(1)

Handicapped Children's Education Bd. v. Lukaszewski 824(4)

Questions 828(1)

Problem 20.2 828(2)

Question 830(1)

4 Measurement of the Expectation Interest When the Breaching Party Performs in Part 831(2)

Questions 833(1)

Problem 20.3 833(1)

C "Benefit of the Bargain" Damages Under the UCC 834(13)

UCC 1-305(a). Remedies to Be Liberally Administered 834(1)

1 Buyer's Damages Under the UCC 835(2)

UCC 2-712. "Cover"; Buyer's Procurement of Substitute Goods 837(1)

UCC 2-713. Buyer's Damages for Non-Delivery or Repudiation 837(1)

Chronister Oil Co. v. Unocal Refining & Marketing 838(2)

Questions 840(1)

UCC 2-714. Buyer's Damages for Breach in Regard to Accepted Goods 841(1)

2 Seller's Damages Under the UCC 841(2)

UCC 2-706. Seller's Resale Including Contract for Resale 843(1)

UCC 2-708. Seller's Damages for Non-Acceptance or Repudiation 843(3)

Problem 20.4 846(1)

Problem 20.5 847(1)

D Limitations on Recovery of the "Benefit of the Bargain" 847(34)

1 Reasonable Certainty of Damages 847(1)

Rancho Pescado, Inc. v. Northwestern Mutual Life Insurance Co. 848(5)

Hollywood Fantasy Corp. v. Gabor 853(5)

Questions 858(1)

2 Foreseeability of Damages 859(1)

Hadley v, Baxendale 860(2)

Questions 862(2)

Question 864(1)

Wullschleger & Co. v. Jenny Fashions, Inc. 864(3)

Questions 867(1)

Problem 20.6 868(1)

3 The Mitigation Principle 869(2)

DeRosier v. Utility Systems of America, Inc. 871(6)

Questions 877(1)

UCC 2-710. Seller's Incidental Damages 878(1)

UCC 2-715. Buyer's Incidental and Consequential Damages 878(1)

Problem 20.7 878(3)

21 Noneconomic and Noncompensatory Damages, Agreed Remedies, and Alternate Remedies 881(56)

A Noneconomic and Noncompensatory Damages 882(13)

1 Damages for Pain, Suffering, and Emotional Distress 882(1)

Erlich v. Menezes 883(6)

Lane v. Kindercare Learning Centers, Inc. 889(2)

Questions 891(1)

2 Punitive Damages 892(1)

Restatement, Second §355. Punitive Damages 892(3)

Questions 895(1)

B Agreed Remedies 895(14)

1 Policing Liquidated Damages Clauses 897(1)

Restatement, Second §356. Liquidated Damages and Penalties 897(1)

UCC 2-718. Liquidation or Limitation of Damages; Deposits 897(2)

Lake River Corp. v. Carborundum Co. 899(4)

Questions 903(1)

Problem 21.1 903(1)

2 Contractual Limitations on and Modifications of Remedy 904(1)

Wedner v. Fidelity Security Systems, Inc. 904(3)

Questions 907(1)

UCC 2-719. Contractual Modification or Limitation of Remedy 908(1)

Problem 21.2 908(1)

C Specific Performance and Injunctions 909(19)

1 The Common Law's Preference for Damages 909(2)

2 Inadequacy of Damages 911(2)

Van Wagner Advertising Corp. v. S&M Enterprises 913(3)

Questions 916(1)

Problem 21.3 917(1)

Problem 21.4 917(1)

3 The Discretionary Nature of the Remedy 918(1)

Campbell v. Can 919(2)

Questions 921(1)

4 Injunctive Relief as an Alternative to Specific Performance 922(1)

Systems and Software, Inc. v. Barnes 923(4)

Questions 927(1)

Problem 21.5 928(1)

D Restitution as a Remedy upon Breach of Contract 928(9)

1 Rescission and Restitution 929(1)

Worcester Heritage Society, Inc. v. Trussell 929(2)

Questions 931(2)

Problem 21.6 933(1)

2 Restitution to the Party in Breach 934(1)

Problem 21.7 935(1)

UCC 2-718. Liquidation or Limitation of Damages; Deposits 936(1)

22 The Rights of Nonparties 937(40)

A Third-Party Beneficiaries 937(18)

1 The Intent to Confer Power of Enforcement on the Third Party 937(1)

Restatement, Second §302. Intended and Incidental Beneficiaries 938(1)

Restatement, Second §304. Creation of Duty to Beneficiary 938(2)

Masad v. Weber 940(6)

Questions 946(1)

Problem 22.1 947(1)

2 Members of the Public as Third-Party Beneficiaries of Government Contracts 947(1)

Questions 948(1)

3 Vesting of Rights in the Beneficiary and the Power of the Original Parties to Modify the Contract 949(1)

Restatement, Second §311. Variation of a Duty to a Beneficiary 950(1)

Problem 22.2 950(1)

4 Defenses Available to the Promisor Against the Beneficiary 950(1)

Problem 22.3 951(1)

5 The Promisee's Rights of Enforcement 951(1)

Smith v. Maescher 952(3)

Questions 955(1)

B Assignment and Delegation 955(22)

1 The Transfer of Contract Rights and Duties 955(1)

2 Assignment: General Principles 956(2)

Restatement, Second §317. Assignment of a Right 958(2)

UCC 2-210(2)....Assignment of Rights 960(1)

Note on Managed Health Care Associates, Inc. v. Kethan 960(2)

Problem 22.4 962(1)

3 Assignments That Violate Public Policy 962(1)

Gurski v. Rosenblum and Filan, LLC 963(3)

Questions 966(1)

4 Anti-Assignment Clauses 966(1)

Restatement, Second §322. Contractual Prohibition of Assignment 967(1)

Questions 968(1)

5 The Effect of Assignment, Notice of Assignment, and the Obligor's Defenses Against the Assignee 969(1)

Problem 22.5 970(1)

6 The Delegation of Contractual Duties 971(1)

Restatement, Second §318. Delegation of Performance of Duty 972(1)

Restatement, Second §328. Interpretation of Words of Assignment... 972(1)

UCC 2-210(1), (5), and (6). Delegation of Performance... 972(1)

Problem 22.6 973(1)

Problem 22.7 974(1)

Problem 22.8 974(1)

Problem 22.9 975(2)
Table of Cases 977(4)
Table of Secondary Sources 981(4)
Table of Laws, Regulations, and Model Statutes 985(2)
Index 987