Contracts - Charles Fried - 2010 Spring - C

8/11/2019 Contracts - Charles Fried - 2010 Spring - C

http://slidepdf.com/reader/full/contracts-charles-fried-2010-spring-c 1/25

Contracts Checklist

A. Forms of Consideration........................................................................................2-3

B. Defective Consideration.......................................................................................4-5

C. Making of Agreements.........................................................................................6-D. !ffers " Acce#tances...........................................................................................$-%

&. 'ritten Contracts " Contract (nter#retation....................................................)*-))

F. +tandardi,ed Forms...............................................................................................)2

. emedies/ &0#ectation damages......................................................................)3-)5

1. emedies/ eliance " estittion.........................................................................)6

(. emedies/ iidated damages.............................................................................)

. emedies/ +#ecific #erformance...........................................................................)$

. Dress....................................................................................................................)%

. 7nconsciona8ilit9..................................................................................................2*

M. Dt9 to Disclose.....................................................................................................2)

:. Conditions..............................................................................................................22

!. (m#ossi8ilit9 " (m#ractica8ilit9............................................................................23

;. Frstration of ;r#ose............................................................................................24

<. 7n=stified :on-;erformance and the ;ro8lem of Forfeitre...............................25



A. Forms of Consideration

(. estatement/a. >45/ !#tion k created 89 #art #erformance or tender 8. >)/ eirement of e0change

c. >4/ For8earance or srrender of legal claim as considerationd. >$)/ Consideration as motive or indcing case ?note/ # 2**@ case8ooke. >$6/ ;romise for 8enefit receivedf. >$/ !#tion k. >$?2/ ;romise indcing action or for8earance 8efore

acce#tanceo#tion k to e0tent necessar9 for =sticeg. >%*/ Detrimental reliance-reasona8l9 indcing action or for8earance

((. Formalit9/ #eo#le shold knoE Ehat the9re getting into@ and Ehat the9regetting ot of an agreementa. Congregation Kadimah v. DeLeo: 'here man orall9 #romised to fnd

G25 li8rar9 in Eill@ and did not end # doing so@ no contract. 'h9Hi. Mostl9 #olic9/ Eithot a +tatte of Frads Eriting@ hard to enforce

an agreement 8ased on one #art9s claims. Also/ oral #romise tochange a Eill cant 8e enforcea8le

ii. 1oE =dge makes it legalese/ ) :o real relianceIcongregation #t in 8dget@ 8t didnt s#end or start 8ilding. 2 :o realconsiderationJ ma98e #romise to name the li8rar9H

(((. Bargaina. Hamer v Sidway: 7ncle #romises ne#heE G5 to avoid

smokingKdrinkingKgam8ling ntil age 2).i. LEo Ea9s to s##l9 consideration for a #romise/ ) Conter-

#romise ?not Ehat ha##ened hereJ 2 ;erformanceii. Loda9 this Eold 8e a >45 case

iii. 'hether one #art9s consideration confers an actal@ o8=ective 8enefit on the other #art9 doesnt matter/ ##l can contract for Ehatthe9 Eant.

iv. 'aiving a legal right constittes considerationv. Earle v Angell: #romise to do something Ehich 9o likel9 Eold

have done an9Ea9 can still 8e consideration 8. Whitten v Greeley-Shaw: Mistress #romises not to call@ g9 #romises gifts.

Mistress draEs # k on her oEn. :ot enforcea8le.i. Consideration mst 8e soght after. >). ?>$) also a##lica8le

c. Duncan v lac!: +eller offers ftre cotton allotment@ cant deliverJ gives #romissor9 note for G)5 to avoid laEsitJ Eelches. :ote nenforcea8le.

i. Cort/ seller didnt have allotment 9et and ths coldnt 8argainfor itJ so the note Eas intended to avoid a frivolos sit

). ;olic9/ cant e0tort G 89 threatening B.+. sit ?>42. Fried/ this original claim Eold not have 8een frivolos

(. Benefita. "ill# v Wyman: ;romise to #a9 for #ast care of adlt sonJ not enforcea8le

2



8. We$$ v "cGowin: ;romise to contine #a9ing for #ast saving of #romisors lifeJ enforcea8le.

i. %n &e Cri#an/ estate mst #a9 for medical care receivedii. >$6/ a #romise in recognition of #revios 8enefit received is

8inding to e0tent necessar9 to avoid in=stice

iii. e9 distinction/ 8enefit conferred directl9 to #romisor ma9 8eenforcea8le as considerationJ not to adlt kids or #arentsiv. ;olic9/ if 9o o8viosl9 Eold have agreed to it having 8een given

the o#tion@ then it can cont as consideration retroactivel9). ;romise im#lied in laE/ Eant to encorage #eo#le to do

things like saving lives Eith assrance that the9ll 8ecom#ensated

2. 'here an act is not meant to 8e gratitos@ a #romise to #a9 made after the fact is enforcea8le ? Ed#on

c. %n &e Schoen!erman@ Ehere man #romised to #a9 mother-in-laE andsister-in-laE for taking care of him after Eifes death/ enforcea8le #romise

i. 'h9H Actal 8enefit received. +o #romise to #a9 for it is validJ 8tEithot a #romise@ famil9 favors Eold 8e gratitos

. eliancea. Kir!#ey v Kir!#ey: A man invites sister-in-laE to live Eith himJ she

a8andons her oEn #ro#ert9 in reliance@ and he kicks her ot 2 9ears later.i. Cort/ +ince man got no 8enefit from her act taken in reliance@ and

did not seek her a8andonment of #ro#ert9@ his offer Eas gratitosand ths no case of action for Eoman. :eed 8argain or 8enefit.

ii. >%*/ case Eold 8e different toda9 8. &ic!ett#: Ahead of its time >%*/ if one relies to her detriment on a #romise@

the #romisor is eita8l9 esto##ed from claiming lack of consideration

c. 'ein$erg: e0am#le of detrimental reliance@ Ehere Eoman retires earlierthan she otherEise Eold have 8ased on #romise of #ension

d. Allegheny College: ad9 #romises G5 for ministr9 stdentsJ gives G) inlife@ re#diates #romise 8efore death. Cardo,o/ estate mst #a9 8alance.

i. :o detrimental reliance 8Kc college hasnt started s#ending the Gii. :o reglar consideration 8Kc the college has not conferred a

8enefit@ sffered a detriment@ or affirmativel9 8argained for either iii. +!/ #romise im#lied in fact/ Cardo,o sa9s that 89 acce#ting the

initial G) the college im#liedl9 #romised to name a scholl9 afterher. Lhs@ a promise for a promise@ and consideration achieved

). >%*?2 sa9s that charita8le s8scri#tions are 8inding EKo

#roof of action or for8earance. Lhat Eold have hel#ed.iv. ;rinci#le/ corts dont consider the adeac9 of consideration

e. D()li##e-Cu*o: 'here there is technicall9 no #romise made@ 8t a falsestatement #on Ehich someone relies@ there is still an action in tort fornegligent misre#resentation.

(. Unilateral Contract: 'here onl9 one #art9 can #ossi8l9 8e in 8reacha. &..g@ Hamer: if ne#heE drinks 8efore 2)@ no 8reachJ 8t if he a8stains and

ncle doesnt #a9@ then ncle has 8reached.

3



B. Defective Consideration

(. estatementa. >3/ ;erformance of a legal o8ligation is not consideration 8. >$%/ Modification in light of neE circmstances/ onl9 for contracts not

fll9 #erformedc. >2*5/ Dt9 of good faith " fair dealing

((. 7CCa. >2-2*5/ 'ritten k to sell goods irrevoca8le for # to 3 months regardless

of consideration 8. >2-2*%/ Modification and rescissionc. >2-3*6/ eirement of good faith in e0clsive dealing contracts

(((. (nadeate Considerationa. at#a!i#: (n ''(( reece@ N gave #romissor9 note for G2 in e0change

for eivalent of G25 at the moment. Contract enforcea8lei. :otion is that adeac9 of consideration is not a estion for a

cortJ if 9o agree to something@ 9o have to do it 8. American Home %m*rovement / cort Eont enforce agreement to #a9 too

mch for a service. Lhs@ ses nconsciona8ilit9 as #ro09 forinadeate consideration

c. Water# v "in/ Eoman sells annit9 Ehich Eill 8e Eorth G6** for G5*to drggie 8o9friend Eho fd # her life

i. Cort Eont enforceJ 8t reall9 8Kc of inadeate considerationHii. Cold 8e that O created the sitation Ehere N Eas in 8ad

8argaining #osition@ Ehereas in at#a!i# it Eas 1itlers doingiii. &0am#le of e0ternal circmstances making a deal

nconsciona8le Ehere o8=ectivel9 there is in fact consideration

(. Contract evisions " egal Dtiesa. Ala#!a +ac!er#: Fishermen demand e0tra com#ensation once shi# has

alread9 left #ortJ threaten 8reach of k if demands not met. Ca#tain accedesto demand 8Kc over a 8arrel. Cort/ nenforcea8le.

i. &0tra mone9 reires e0tra considerationJ cant threaten 8reach toget more G ot of em#lo9er

ii. >3/ cant se a dt9 9o alread9 have as neE considerationiii. Difficlt9 cased 89 the fisherman

8. Schwart,reich: ;recrsor to >$%/ changed circmstances nforeseen at thetime of the original k can lead to a valid modification agreed on 8oth sides

i. A 8etter offer elseEhere conts as changed circmstancesc. Goe$el v Lin: BreEer needs iceJ ice harvest shortJ ice vendor asks for

more G than #reviosl9 agreed #riceJ 8reEer Eont #a9. Cort/ higher #rice enforcea8le

i. &ita8leK#8lic #olic9 decision overall/ higher #rice kee#s 8oth in 8siness@ loEer #rice drives 8oth or of 8siness ?8Kc ice co. getsno G and 8eer co. gets no ice

ii. +ame reslt nder >$%H

4



). inclded e0tra 5*P for loE ice cro#@ B7L/2. Cold 8e that k didnt antici#ate sch a hge shortfall

iii. Different from Ala#!a +ac!er# in that #ro8lem Easnt cased 89either #art9

. (llsor9 ;romises

a. Wic!ham: m8er co. had deal to 89 coal at G).5* 8t no o8ligation to 89 an9 at allJ not a k 8Kc no mtalit9 of agreement. Lhs cant enforceEhen #rice of coal goes #

8. Wood v Lucy Lady Du-Gordon: 'ood gets e0clsive rights to c9sname@ 8t she endorses a line of clothes EKo him and gives him no G. c9sa9s em#t9 8ag 8Kc no o8ligation on 'oods #art@ =st if ( make an9 GJCardo,o sa9s im#lied #romise to tr9 and make G@ so there is a k.

i. ;romise im#lied 89 fact ?like Allegheny@ 8t more 8acking here 8Kc it does seem nreasona8le that 'oods #romise to tr9 and makeas mch G as #ossi8le Eoldnt 8e #art of the agreement

ii. Lhis Eold 8e an o#tion k #rsant to >$

iii. ;olic9/ Cardo,o ma9 8e evening ot the #oEer since the9 startedon neal 8argaining terms

c. /mni Grou*: 89er has k to 89 land if engineers re#ort is satisfactor9to 89er. &m#t9 8ag 8Kc of s8=ective stdH

i. Cort/ not an illsor9 #romise@ 8Kc the 89er is nder o8ligation toact in good faith. (f 89er shoEs good faith in re=ecting theengineer re#ort@ no o8ligation to 89.

d. Gianni S*ort: 89er of cstom-made merchandise tries to invoke k #rovision that it can cancel an9time 8efore shi#ment@ then get themerchandise for Q #rice

i. Cort/ this is nconsciona8le clase@ so the retailer mst 89

ii. e9/ case decided on nconsciona8ilit9@ good faith@ eit9e. %n the "atter i a$y ": for srrogate #regnanc9J srrogate mother

changes mind@ doesnt Eant to give # 8a89. Cort/ nenforcea8le@ 8tcstod9 to ado#tive father ?as technical 8iological father

i. ;oint/ to avoid setting #recedent that 9o can contract for childrenii. ;8lic #olic9 decision/

). Ba8ies not a commodit92. ich #arents cant 89 kids from #oor #arents

f. 7nger/ shold defalt rle 8e hard-nosed enforcement of contracts nomatter Ehat ?eniceH !r good faithKeit9 ?BelmontH

i. 'hen does freedom of contract override #8lic #olic9 concerns@

and vice versaHii. Sheet# v 0eddy(# 'ro#ted 'ood#: &m#lo9ee com#lains a8ot 8ad

alit9 #rodcts@ and em#lo9er ses em#lo9ment-at-Eill a8ilit9 toterminate at an9 time.

). stice ;eters/ tort action for Erongfl se of legitimate kright is valid

2. Lhs@ sing tort override to achieve Belmontian reslt

5



C. Making of Agreements

(. estatementa. >33/ Certaint9 8. >2*/ &ffect of Misnderstanding ?Mistake

((. 7CCa. >2-2*4/ Formation in general 8. >2-3*5/ !#en #rice term ?Ehen #rice hasnt 8een s#ecified

(((. (ntenta. +8=ective vs o8=ectiveH Em$ry: em#lo9erKem#lo9ee disagreement as to

Ehether there Eas an em#lo9ment k for a 9earJ dis#ted details ofconversation

i. 1eld/ s8=ective intent doesnt matterJ actal Eord all that mattersii. O never has to #rove Ns s8=ective intentJ reasona8le #erson std.

iii. . 1and in Hotch!i##: intent is nothing@ Eords are ever9thing. 8. (ntention to 8e 8ond/ Keller: for G3** for a G)5 Eatch

i. 1eld/ Ehole thing Eas frolic " 8anter@ and ths neither #art9intended to 8e 8ond to a real k and ths no k.

ii. econciling Eith Em$ry: intent matters Ehere 8oth #arties eitherintend or dont intend a kJ not Ehere there is disagreement

c. 'here Eords are nam8igos and one #art9 relies on them as a k@ thereis a k. 'here Eords are am8igos and reasona8le #erson Eoldnt 8elieve it to 8e a k@ then no k. 'here cort finds that Eords are am8igosand reasona8le ##l cold disagree@ its a < for =r9.

d. "oulton: advertisementoffer to negotiate@ not final offer of salei. +o Eide o#en that there is clearl9 no intent to 8e 8ond

e. 0e1aco: Le0aco makes 8etter offer to ett9 to take deal aEa9 from;enn,oil. ;enn,oil ses Le0aco for tortos interference.

i. ;enn,oil clearl9 intended oral agreement to 8e 8indingJ ett9solicited offer from Le0aco@ 8t clearl9 Eanted ;enn,oil to think itEas 8ond into oral agreement.

ii. 1eld/ s8=ective intent not im#ortant. easona8le #erson Eoldfind intent to 8e 8ond 89 ett9@ so theres a k and ;enn,oil Eins

iii. Fried/ deal this si,e shold need Eriting to 8e final

(. (ndefinitenessa. 2o#e*h "artin 2r Deli: ease has clase alloEing reneEal for 5 more

9ears at #rice to 8e agreed #onJ Cort sa9s this doesnt reire a

ma0imm or even reasona8le #rice from landlord.i. 7CC >2-2*4?3/ mst 8e a reasona8l9 certain 8asis for determining

remed9 for cort to grant remed9ii. 7nclear Ehat the clase is even e0#ressing an agreement a8ot/

=st agreeing to talk a8ot neE rentH). Agreement to agree insfficient

6



8. Laayette +lace A##oc#.: Deal 8tE cit9 of Boston and ;A Eith man9ndetermined details@ 8t mechanisms for determining them. dge Fried/this is a k des#ite the man9 nsettled items

i. (f the machiner9 is in #lace for determining the nsettled isses@then the k is com#lete. Cant reire ever9 detail to 8e in the k

). (.e.@ one ste# 8e9ond agreement to agree is kosher c. Homan v &ed /wl: 9 relies on grocer9 chain re#resentations as toEhat he needs to do to o#en a store. Chain kee#s raising franchise #rice onhim@ ntil #ricing him ot. 9 sesJ cort gives reliance damages.

i. Cort does not find a k here as there is never a #romiseJ instead@ #romissor9 esto##el 8ecase of detrimental reliance

ii. 7nder #romissor9 esto##el@ damages ma9 onl9 8e enogh to avoidin=stice/ so 9o get Ehat 9o can #rove 9o lost from the reliance@ 8t reliance damages dont e0ceed the loss cased 89 the changeof #osition. estored to #osition 8efore reliance

d. 1oE Corts deal Eith indefiniteness/

i. Cort making # termsii. ;arties can create mechanism for deciding ? Laayetteiii. Cort doesnt enforce at all ? Deliiv. Cort alloEs reliance damages onl9 ? HomanJ kind of torts9

. Misnderstandingsa. &ale#: +eller and 89er agree to sale of cotton a8oard shi# ;eerless.

LEo shi#s share that name@ and Ehen the 2nd one comes in@ 89er refsesto #a9 claiming he intended to 89 from the first ;eerless ?reall9 8Kccotton #rices are doEn

i. Cort/ no k de to misnderstandingii. Lort idea of letting loss lie Ehere it falls Ehere there is no falt

iii. Freedom from contract/ not holding #eo#le to things the9 haventknoEingl9 agreed to

iv. >2*/ if neither #art9 knoEs that the other attaches a differentmeaning@ then no k

). (f each knoEs that the other attaches a different meaning@also no k

2. B7L@ Ehere one knoEs or shold knoE that the otherattaches a different meaning@ then k has the meaning given 89 the other #erson

8. Fried " 7nger/i. (n mistake conte0t@ since the natre of k is that there is a

relationshi#@ it seems a 8etter otcome for the #arties to share theloss Ehere there is no falt rather than letting it lie Ehere it fallslike in tort@ Ehere there is no relationshi#



D. !ffers " Acce#tances

(. estatementa. >25/ !#tion k $. >32/ (nvitation of #romise or #erformanceIofferees choice if am8igos

i. >62?2/ Ehere offeree chooses #erformance@ the 8eginning of schtender or #erformance creates o8ligation to com#lete itc. >36/ Methods of termination of the #oEer of acce#tanced. >45/ !#tion k created 89 #art #erformance or tender e. >63/ Mail8o0 rle . >6%/ Acce#tance 89 silence or e0ercise of dominion g. >$/ !#tion k created 89 offer indcing #redicta8le actionKfor8earance

((. 7CCa. >2-2*5/ 'ritten #romise to kee# offer o#en on sale of chattels irrevoca8le$. >2-2*/ Additional terms in acce#tance or confirmation

(((. Basics/a. st as consideration mst 8e soght 89 #romisor@ acce#tance mst 8e on

the terms #ro#osed 89 offeror in order to make a k $. !ffer " Acce#tance as circit/

i. !fferR---R---RAcce#tanceJ the crrent doesnt floE nless theacce#tance is of the e0act offer made

ii. (f acce#tance changes terms@ then its conter-offer@ not acce#tance

(. Lermination of !ffersa. a#se of time/

i. 0e1tron: B9er takes 5 Eeeks to decide if he Eants steel@ then sa9she Eants it. +eller sa9s fine. Cort/ =r9 cold find a k

). !riginal offer ma9 la#se@ 8t even if so the acce#tancecold 8e a conter-offer and fine an acce#tance2. 'hat is a reasona8le time for offer to sta9 o#en de#ends on

cstomKsage3. Acce#tance not on the terms of original offer doesnt

com#lete the circit@ 8t attem#ts to start a neE circitii. !#tion contract/ the #rchase of a #eriod of time in Ehich offer

sta9s o#en$. Death or inca#acitation/ 2aco$y: 7ncle offers fll inheritance to niece "

hs8and to come take care of him " ant in old age. Co#le comes@ 8tncle has alread9 killed selfJ niece cares for ant to death. enforcea8le.

i. Death o8viosl9 terminates an offer that has not 9et 8een acce#tedii. Bt@ cort sa9s #resm#tion of 8ilateral k Ehen nilateral k isnts#ecified@ so #romise of #erformanceconsideration here

iii. Acce#tance EKin s#ecified mode " means is 8inding 8e9ond deathc. evocation/

i. Dic!in#on v Dodd#: +eller offers hose@ and agrees to kee# offero#en ntil Fri.J 8t sells to another 8efore then@ and 89er tries toacce#t once he finds ot a8ot the other deal. Cort/ no k

$



). :o o#tion k Eithot considerationJ if o#tion isnt #aid for@its revoca8le

2. !ffer is revoked as soon as offeree knoEsJ no reirementof direct commnication from offeror

ii. +etter#on: N offers discont to mortgagee in e0change for earl9

#a9ment. O tries to #a9@ 8t N Eont acce#t the G 8Kc hes alread9sold the mortgage. Cort/ revocation ok@ no k ). evocation #ermissi8le ntil acce#tance2. Acce#tance onl9 com#lete #on offerors acce#tance of

#a9mentJ so e0tending the G doesnt cont3. Dissent/ if acce#tance de#ends on action 89 offeror@ then

offree has no rights at all4. >45 Eold have 8een relevant@ thogh still < of Ehat

constittes acce#tanceiii. Car$olic Smo!e all " rac!en$erry ?terri8le mom in laE: Ehere

offeror s#ecifies a method of acce#tance@ offeree need onl9 folloE

that #rocedreJ no direct notice of acce#tance is necessar9iv. eneral contractors rel9ing on s8-contractor 8ids/). 2ame# aird: s8 not 8ond 89 oted #rice@ as it is in 8oth

#arties 8est interests to kee# negotiations o#en. el9ing ons8 8id is not >%* reliance. ?. 1and

2. Drennan: s8 is 8ond 89 oted #rice@ as the Eritten otecreated an o#tion k nder >$. ?. Lra9nor

a. Decided nder >%* at the timeJ #re-2nd estatement

. Means of acce#tancea. Mail8o0 rle ?>63/

i. Acce#tance is valid #on #osting@ re=ection #on recei#t

ii. !vertaking re=ection makes acce#tance a mere conter-offer@giving offeror o#tion to 8ind offeree or not

iii. !vertaking acce#tance is =st an acce#tanceJ creates k $. +ilence as acce#tance/

i. Day v Caton: +ilence in the face of knoEing e0#ectation of #a9ment infers agreement to #a9

). Ho$$#: silence can serve as acce#tance even Ehere offeroronl9 incrs detriment@ and no 8enefit to offeree

ii. estatement >6%

(. Battle of the Formsa. ast shot rle/ Lhe last offer 8efore #erformance controls$. 7CC >2-2*/ Additional terms in an acce#tance are mere #ro#osals@ and

the acce#tance standsJ nless 8tE 2 merchants@ or acce#tance isconditioned on the neE terms.

c. (llstration/ %daho +ower

%





i. &o$ert %ndu#trie#: onl9 se #arol evidence if there is am8igit9@and onl9 if it does not clearl9 contradict the Eords of the k

8. +aciic Ga# 3 Electric: Lra9nor e0#lains that #arole evidence sholdalEa9s 8e alloEa8le in inter#reting contracts " determining meaning

i. ;arol evidence cant addKs8tractKvar9 terms@ 8t can hel#

determine Ehat terms are.c. Coman: Ehat to do a8ot sitation not s#ecificall9 contem#lated 89 kHi. dge eeton chooses s8=ective a##roach to k inter#retationI

i.e.@ Ehat did the Eriters actall9 intendH As o##osed to death ofthe athor@ o8=ective te0tal inter#retation.

ii. Modern anti-formalist a##roach Eith e9e toEard enacting intentd. ;osner/ alternative to formalist vs anti-formalist is defalt rle in favor of

economic efficienc9Ktilitarian #reference-enactinge. ig Ea#t v C: Conference tries to raise cost of leaving at ))th horJ Cort

sa9s this neE #rovision aimed at kee#ing BC is not enforcea8le.i. Clase disalloEing fa0K#hone vote controls over a clase alloEing

them in some cases@ 8Kc it is more s#ecificii. Decisions seems 8ased on efficienc9 rationale

(. Mistakea. Sherwood ?e#levin for a CoE/ O contracted for a coE at a #rice of

8arren coEJ Ehen it trned # #rego@ N Eoldnt sell for loEer #rice.Cort/ no k de to mtal mistake of fact a8ot coEs 8arrenness.

i. Cort sa9s this is mistake of essence of the item to 8e sold.&ssence of a coE is to make more coEs@ so Eorthless if 8arren

). As o##osed to mistake of accident@ Ehich is less thanessence and doesnt kill the k

ii. Dissent/ N Eas in 8est #osition to knoE@ and O took a gam8le and

EonJ 8eing right too earl9 sholdnt ro8 him of Einnings). :ot mtal mistake of factJ =st different assm#tions

iii. ;rinci#le of inertia/ if coE had 8een delivered to O@ nlikel9reversal there eitherJ mistake of fact#reserve stats o

8. El#inore: nilateral mistake@ made in good faith@ can reslt on rescission of k. :o sefl social #r#ose in making ##l lose G over honest mistakes

c. "c&ae: Astralian govt sells rights to oil tanker to s#eclatorsJ k Eas notfor the shi# itself@ 8t for the rights to an9 findings that ma9 occr. :oshi# at location listed@ and cort finds for O s#eclators.

i. ;olic9 8ehind this is to #rotect against frad and #reserve thes#eclation marketIths ;osnerian efficienc9

). ovt in 8est #osition to knoEKfind otii. Also fits #romise #rinci#le/ govt said there Eas a shi#@ and there

Eas none@ so hold them res#onsi8le

))



F. +tandardi,ed Forms

(. estatementa. >2*%/ (ntegrated agreements$. >2))/ 7n-contem#lated terms in standardi,ed agreements

i. +tandardi,ed k a##lies as a reasona8le #erson Eold nderstand itii. >2))?3/ Ehere #art9 has reason to 8elieve that other #art9Eoldnt consent to the k if he kneE it Eas in there@ its invalid

iii. +ee comment@ # 6$3 in case8ook

((. 7CCa. >2-3)4/ (m#lied Earrant9 of merchanta8ilit9$. >2-3)5/ (m#lied Earrant9 of fitness for #articlar #r#osec. >2-3)6/ &0clsion or modification of Earranties ?reasona8leness std.

(((. "undy: Assistant DA has insrance #olic9 changed@ silver stolen@ then sesclaiming lack of notice. Cort/ mail Eas in large letters@ notice adeate.a. Defalt/ im#lied dt9 to read/ this said ;&A+& &AD and said :eE

;olic9. And hes a laE9er. 1igher standardH

(. &ichard#: O in=red in com#an9 trck driven 89 hs8andJ com#an9 relies on 8oiler#late release form she had to sign. Cort/ for Oa. 3 reasons@ none of Ehich alone Eold 8e dis#ositive/

i. ) Dal ;r#ose@ 2 !verl9 Broad@ 3 of Adhesion$. (sses Eith k of adhesion/

i. ack of nderstanding on #art of OH ?idea from akeii. ack of meeting of the minds

iii. >2))

. roemmer: A8ortion clinic standardi,ed k reires ar8itration. 7nenforcea8le.

a. &motional stress not #resent in "undyi. +ch distress can mean there is no assent at all des#ite signatre

ii. 7nilateral mistake ?>2* Arga8l9 clinic kneE that ##l coming inEold 8e nder sch stress and didnt think the9 Eere signingaEa9 their rights to =r9 trials.

(. Silver#tein v St +aul: 'LC caseJ estion is Ehether to se insreds form?making %-)) clearl9 one occrrence or insrers form ?Ehich is am8igosa. Cort/ se the insreds form@ largel9 8Kc insrers form didnt 8ecome

official k ntil after the attacks$. +maller insrers cant 8e held to #rimar9 insrers form 8Kc lack of

o##ortnit9 to revieE the formi. B7L/ insrance indstr9 cstom is for la9ered insrers to sim#l9folloE the lead of #rimar9 insrer forms 8Kc #rimar9 has the most Gtied # so sensi8le to e0#ect them to negotiate a good deal

ii. ood e0am#le of holding ##l to a k the9 dont themselves make

)2



. emedies/ &0#ectation Damages

(. estatementa. >34/ Measre of damagesI#ersonali,ed loss in vale 8. >34$/ ;roof EKreasona8le certaint9 of loss

c. >35*/ Dt9 to mitigate ? Luten ridge rled. >35)/ :o lia8ilit9 for nforeseea8le damages from 8reach ? Hadley rlee. >352/ 7ncertaint9 as a limit on damagesf. >353/ :o damages for emotional distr8ance

i. 7nless serios emotional distr8ance Eas #articlarl9 likel9 reslt

((. 7CCa. >2-*6/ +ellers resale inclding k for resale 8. >2-))/ B9ers remedies in generalKsecrit9 interest in re=ected goodsc. >2-)2/ Cover " B9ers #rocrement of s8stitte goodsd. >2-)3/ B9ers damages for non-deliver9 or re#diatione. >2-)5/ B9ers incidental " conseential damages

(((. Measringa. Haw!in#: Doctor garanteed to make #atients hand )**S #erfectJ

instead he rined the hand. Cort/ damages for Ehat he Eold have had inthe case of fll #erformance

i. Measre of k damages is the difference in vale 8tE Ehat is #romised " Ehat is received

ii. +o no #ain " sffering@ since that Eas #art of consideration for k ). Ma9 have gotten #"s if another srger9 had 8een reired

8. Grove#: N contracted for se of O land as arr9@ and k reired N to retrnland graded and sa8le. Cort/ damages measred 89 cost of com#leting #erformance.

i. rading land noE costs G6*J vale of land graded is G)2. +ocort gives G6*

). Dissent/ Damages shold 8e G)2/ difference in valeii. Damagescost of com#leting #erformance rather than vale had

#erformance 8een com#letedc. +eevyhou#e: 1omeoEners alloE stri# miningJ land retrned nsa8le in

8reach of k. Cort/ damages G3** ?vale@ not G25 ?cost of com#letioni. Dimintion of ale le/ difference 8tE market vale of land

as left " land if #erformance had 8een com#letedii. Fried/ this cant 8e the general rle 8Kc of fairness " gl9 fontain

d. 2aco$ 3 4oung#: Contractor sed Erong 8rand@ same alit9 of #i#e.

Cardo,o/ onl9 nominal damages 8Kc tearing ot " re#lacing Eold 8ema=or e0#ense and add no vale at all. :o vale lost 89 O

i. !Ener mst #a9 for the constrction/ mst #a9 for 8enefit receivede. Acme "ill#: to 89 Eheat on l9 2%. ;rice has dro##ed 89 then and

seller has alread9 sold ot Eheat@ 8t 89er comes ot on to# from 8reachi. Cort/ O cant recover damages Ehere 8reach cases econ.

gainKcases no in=r9

)3



f. Laurin: +eller takes gravel from land 8efore delivering land to 89er.Cort aEards vale of removed gravel to 89er

i. 'hat Eas contracted forH (f gravel inclded@ vale oEed to 89er g. ;olic9/ Cost of com#letion vs dimintion of vale

i. Both intended to #t O in #osition as if fll #erformanceJ dis#te

over Ehat that meansii. ;osner efficienc9 favors dimintion of vale rle/ efficient 8reachiii. aises < of meaning of vale/ =st G or intangi8les tooH

(. ationalesa. Goodman: N #romised franchise to sell radios@ then 8reached. Franchise

Eold have 8een termina8le at Eill. Cort/ no e0#ectation damages 8Kc oftermina8ilit9@ 8t reliance damages ok.

i. Lreated as 8reach of a k to make a kii. !ther #ossi8le a##roach/ tortos misre#resentation a la D()li##e

8. &fficient 8reach doctrinei. ;osner/ (f a 8reach Eold make the 8reacher 8etter off than the k

Eold have@ and the in=red #art9 is no Eorse off than the k Eoldmake him@ then 8reach shold 8e encoraged.

). Based on ma0imi,ing #8lic goodii. Bt see Friedman/ efficient 8reach is still 8reach@ and alloEing

efficient 8reach legitimi,es tort of conversionKstealingc. CrasEell/ defalt rle shold 8e dimintion of vale@ and k shold have to

indicate otherEise for cost of com#letion to controld. +chEart, " +cott/ laE of k Eold 8e a failre of ##l cant contract for an

gl9 fontain@ i.e. something that diminishes market vale@ if the9 Eant.i. Dimintion of vale rle doesnt alloE gl9 fontains

ii. Can 8e reconciled Eith CrasEells #ro#osal of reiring s#ecific k

langage making a k s8=ect to cost of com#letion rle toovercome the defalt

. imitations on &0#ectation Damagesa. Dt9 to Mitigate

i. Luten ridge: Bridge co. 8ilt a 8ridge des#ite cont9 calling offthe #ro=ectJ com#an9 demanded fll k #rice. 1eld@ Ehile cont9Eas in 8reach@ com#an9 had dt9 to sto# 8ilding Ehen cont9called it off

). Dt9 of 8reach victim not to aggravate damages2. Conter-argment/ com#an9 had contract for the right to

8ild 8ridgeJ so gl9 fontain@ the9 get to 8ild it

8. +ar!er: +hirle9 Macaine caseIk to star in movieJ movie cancelledJstdio offers role in different movie for same #rice. +tdio claims dt9 toacce#t re#lacement em#lo9mentJ held@ no dt9 to acce#t

i. eason/ s8stantiall9 differentKinferior to initial =o8 offer.). Brden on em#lo9er to #rove that re#lacement offer is

s8stantiall9 similar ii. Dissent/ em#lo9ment of same t9#e oght to create >35* o8ligation

)4



iii. ;olic9/ freedom from kJ sholdnt 8e reired to take =o8 9o dontagree to

c. illetter: dt9 to mitigate doesnt reire taking same =o8 T loEer #a9

(. Conseential Damages/a. Hadley: Dela9 in getting mill shaft re#aired cases loss of several da9s

8sinessJ held@ Ehere there are s#ecial circmstances leading to increasedloss@ 8reaching N lia8le onl9 for loss that Eold occr nder normalcircmstances nless he is made aEare of s#ecial circmstances.

i. !##osite of tort eggshell skllJ in k@ lia8le onl9 for foreseea8ledamages@ 8Kc in k #arties contract for their oEn standards ofcondct and risk allocation

8. Heron %%: +hi# takes its time getting sgar to (raJ #rice dro#s 8tEe0#ected and actal arrival dates. 1eld@ shi##er is lia8le for lost #rofit

i. ost #rofitdamages in the normal corse of a dela9 in deliver9Jths lia8ilit9 nder Hadley

ii. ;olic9/ sgar oEner contracts for risk that #rice Eill 8e 8ad on

agreed dateJ did not contract for risk that dela9 Eill case lost #rofit@ so the harm mst fall to the shi##er

c. La0i to the air#ort e0am#le/ if 9o have a s#ecific@ vala8le reason to getto air#ort ?like a =o8 intervieE@ even if 9o declare this higher vale to theca8 driver@ 9o can onl9 collect on that higher vale in case of 8reach if9o #a9 for itJ no insrance for free.

((. 7ncertain Damages/ 'reund: +tandard #8lishers kJ #8lisher 8reaches 89refsing to #8lish as agreed. 1eld@ cant get cost of self-#8lishing@ nominaldamages onl9 8Kc athor cant #rove hoE mch he lost in ro9alties

i. 1ad contracted for share of ro9alties@ not for #h9sical #8licationof 8ooks

ii. Mst 8e a8le to #rove actal amont of damages to collect.

)5



1. emedies/ eliance " estittion

(. estatementa. >%*/ eliance can 8e consideration 8. >34%/ eliance damages as alternative to e0#ectation

i. O can collect reliance interest mins Ehat N can #rove O Eoldhave lost an9Ea9c. >3*-36/ estittion

((. 7CCa. >2-)$/ iidation or imitation of DamagesJ De#osits

(((. eliance Damagesa. Security Stove: Carrier failed to get dis#la9 stove to trade shoE in time to

shoE it off. O recovers all travel " shi##ing e0#enses.i. Cant definitivel9 #rove an9 lost #rofits@ so as a s8stitte for

e0#ectation damages O can recover his snk costsii. ;olic9/ Haw!in# rle can onl9 a##l9 Ehere e0#ectations damages

can 8e calclatedJ otherEise@ O cold recover nothing at all and thatEold 8e n=st

8. Arm#trong &u$$er: B9er of scra# r88er reconditioning machines thatnever arrived ses for cost of #re#aring for installation@ #ls lost #rofits@ #ls cost of seless scra# r88er on hand. 1eld O can onl9 collect cost ofconstrcting fondations for machines. ?. 1and@ .

i. Cannot make #romisor an insrer of the #romisees ventreii. O can collect reliance interest mins Ehat he Eold have lost

iii. Can never collect e0#ectation damages that cant 8e #roven

(. estittion/ 8asic idea is to restore the stats o and avoid n=st enrichment

a. Algernon lair: !Ener 8reaches on #ro=ect after 25S of Eork doneJ iffll9 #erformed@ 8ilder Eold have lost G. 1eld@ 8ilder can collectmarket vale ?in 5uantum meruit of Eork instead of k vale.

i. 'here the other #art9 has 8reached@ the in=red #art9 is entitled tomarket vale of an9 8enefits conferred@ notEithstanding k #rice

ii. Bt see Kehoe: since O cold have made no more G if the k had 8een fll9 #erformed@ no recover9

8. /liver: aE9er had #erformed %%S of his dties@ Eas let go 89 client atver9 end of case. 1eld/ recover9 limited 89 k

i. (f k is s8stantiall9 #erformed@ then k #rice controlsc. ritton: &m#lo9ee Eorks % months of )2 month k. 1eld@ em#lo9er mst

#a9 for 8enefit received@ 8t limited 89 k #ricei. Cant collect more than k #rice Ehen O is the one in 8reach

ii. ;olic9/ alloEing no recover9 Eold #t one Eho re#diates fromstart in 8etter #osition than someone Eho attem#ts #erformanceJ 8t alloEing 5uantum meruit Eold alloE #rofit for 8reach.

d. 'here O is in 8reach@ N can also redce damages 89 amont he can shoEhe lost from the 8reach.

)6



(. emedies/ iidated Damages

(. estatementa. >356/ iidated damages " #enalties/

i. Damages ma9 8e liidated in a k onl9 insofar as is reasona8le in

light of antici#ated or actal loss 89 in=red #art9 reslting form 8reach@ and the difficlties of #roving loss.

((. 7CCa. >2-)$

(((. City o &ye: Cit9 ses on G)** 8ond in a k 8Kc 8ilder had failed to finish a #ro=ect on time. 1eld@ no recover9 8Kc this Eas a #re #enalt9 for finishinglateJ no shoEing of actal loss 89 the cit9 from 8ilders 8reach. 8. >356c. Does this mean that an9 k #rovision for timeliness of finishing a #ro=ect is

nenforcea8le EKo actal #roof of loss from dela9H

(. La!e &iver: Com#an9 #rovides onl9 55S of 8siness it Eas o8ligated nder kto #rovide. 1eld@ O cant collect liidated damages 8Kc the9 fail to take intoaccont saved overhead 89 in=red #art9.d. ;osner/ this is ( laE@ 8t seems like adltsKcom#anies shold 8e a8le to

contract for this kind of #rovisionJ ma98e Ee oght to let terms controlEhere 2 #arties are on eal footing

. "uldoon: (talian stone monment 2 9ears late arriving in +F. 1eld@ G)*Kda9liid damages for lateness nenforcea8le.e. !ld rich EidoE can #rove no actal damagesJ cort doesnt com#ensate

for emotional damage of 8eing EKo monment for 2 9earsf. 'old seem to fall nder >356 difficlt9 of #roving loss

g. ;olic9/ k laE is not crim laEJ not to 8e sed as #nishment or deterrence

)



. emedies/ +#ecific ;erformance

(. estatementa. >35%/ ;resm#tion in favor of damagesJ +;last resort at cort discretion

8. >36*/ Factors affecting adeac9 of damagesc. >36/ ;romise to render #ersonal service Eill not 8e s#ecificall9 enforced

((. 7CCa. >2-)6?)/ B9ers right to +; or re#levin/ +; availa8le Ehere goods are

nie. Lotall9 at corts discretionJ inclding setting terms as =sticedemands.

(((. Fried/ Ehere 9o have contracted for the ver9 thing@ and not =st for the valeof the thing@ e0#ectation damages Eont do the trick.a. &ver9one agrees that there are times Ehen +; is the #ro#er remed9@

#articlarl9 Ehere the k is for something nie.

8. +chEart,/ +; makes sense 8Kc no reason to 8elieve that the 89er cancover an9 8etter than the seller

(. 6an Wagner: Bill8oard on side of 8ilding casea. After 8reach@ O 8ill8oard oEner sa9s s#ot is nieIand@ defalt rle for

real estate is +; 8. 1eld@ #resm#tion of +; in real estate doesnt a##l9 to leasesc. Damages/ vale of remaining lease@ Ehich is % 9ears

i. Mins #ro8a8ilit9 of sale@ Ehich is *.d. 7&/ defalt remed9 for 8reach is damages@ not +;I#articlarl9 Ehere

damages can 8e accratel9 ascertainedi. emed9 of +; is availa8le in eit9 Ehere damages cant 8e calcd

. Curtice ro#.: Lomato farmer failed to sell tomatoes to O as #romised in k.a. Cort said tomatoes Eere nieJ 8ased on ease of re#lacement for 89er

i. B9er has lost an incalcla8le amont@ so cort aEards +;

)$



. Dress

(. estatementa. >)4/ 'hen dress 89 #h9sical com#lsion #revents formation of a k 8. >)5/ 'hen dress 89 threat makes a k voida8le

c. >)6/ 'hen a threat is im#ro#er ((. Sil#$ee: N threatened to tell Os hs8and a8ot a de8t if she didnt #a9J

hs8and Eas nts and might hrt someone if he fond ota. 1olmes sa9s threatening to drive someone cra,9 is like threatening in=r9 8. Lhs@ #ossi8le to get dress claim@ so srvives MLDc. e9/ traditional dress reires threat of #h9sical in=r9

(((. Loral: N s##lier threats 8reach on original k if O Eont raise #rice and give N4* additional contracts. O agrees@ the ses to get e0cess G 8ack a. +o N had O over a 8arrelJ no threat of #h9sical in=r9@ 8t economic threat 8. 1eld@ economic dress e0ists in sch e0treme cases

i. :o alternative for threatened #art9ii. Dress sitation created 89 N

c. As o##osed to Hac!ley Ehere N did not create Os financial Eoes so nodressJ O cold have sed earlier 8t needed the G noE@ so he acce#ted the 8ad deal.

(. :o,ick/ dress is Ehere 9o get an offer 9o Eold rather not have gotten@like 9or mone9 or 9or life.

)%



. 7nconsciona8ilit9

(. estatementa. >2*$/ (f nconsciona8le at time its made@ k or term is nenforcea8le

((. 7CCa. >2-3*2/ (f cort finds k nconsciona8le@ it ma9 refse to enforce

(((. 7nconsciona8ilit9 is the same thing as void against #8lic #olic9

(. Cam*$ell Sou*: Cam#8ell needs carrotsJ farmer sells to someone else forhigher #rice. 1eld@ k is nconsciona8le 8Kc Cam#8ell has the right to not 89if it doesnt need carrots@ Ehile farmer is 8ond no matter Ehata. Clearl9 something of an eit9 decision@ as the nconsciona8le clase is

not even in #la9 hereJ ite the o##osite@ as Cam#8ell Eants the carrots 8. Cam#8ell sed for +;J had the9 sed for damages@ might have Eon

. Henning#en: Car 89er s8=ect to terri8le Earrant9 nder standard@ indstr9-

Eide #rchase k.a. is nconsciona8le 8Kc there Eas no com#etitionJ no chance to go

elseEhere and #a9 for 8etter Earrant9 8. +ee also Wal!er-0homa#@ Ehere cort fond nconsciona8le a #rchase k

Eith an nfair financing #lan ?add-on clasei. Both of these are #aternalistic/ seller in #oEerfl #osition taking

advantage of Eeak 89er@ so cort finds nconsciona8le). (nealit9 of knoEledge

c. ;olic9/i. Fried/ Eh9 not =st admit #aternalismH +ometimes Ee =st knoE

8etter@ and Ee oght to =st em8race that

ii. +chEart,/ #aternalism is 8ad@ 8Kc 9o hrt the #eo#le 9ore tr9ingto hel#. ;oor #eo#le Eill 8e #riced ot of the market if 9o makethe floor of safet9 too e0#ensive for them

). Conter-#oint/ #aternalistic #olicies correct manifestmarket inefficiencies and nfairness/

a. (nformation inadeac9i. +ellers are re#eat #la9ers@ so 89ers cant

get on eal #la9ing field 8. Free-rider #ro8lem

i. B9er vales 8etter Earrant9@ 8t its not insellers interest to give that to 89er 8Kc if he

informs 9o of the vale of the Earrant9then other sellers can 8enefit from 9orknoEledge of Earranties and get more G otof 9o for their Earrant9

2*



M. Dt9 to Disclose

(. estatementa. >)53/ Dt9 to disclose Ehere failre to disclose is nconsciona8le

8. >)6)?8/ :ondisclosreassertion Ehen #art9 knoEs disclosre Eoldcorrect mistake of other #art9

c. >)62/ 'hen a misre#resentation is fradlent or materiald. >)6$/ eliance on assertions of o#inione. >))/ 'hen reliance on assertion of intention is not =stified/

((. <estion is Ehether this is dt9 not to lie vs dt9 to give info aEa9a. (n-class h9#o/ (m selling a hose. (t has a #ainting that ( hateJ ( claim to

love it and sa9 ( Eant G)* for it@ 9o give me G$5**i. :ot a #ro8lem nder dt9 to disclose/ reliance on o#inion@ and no

reirement of 8eing honest a8ot negotiation range 8. +ame #ainting@ 8t ( claim that ( have another 89er for G)2. (ts false

i. Lhis is a #ro8lem 8Kc its a lie a8ot an actal fact@ not an o#inionor s8=ective intention

(((. Laidlaw: to 89 to8accoJ O seller Eants his #rodct 8ack 8Kc N 89er kneEthat 'ar of )$)2 had ended@ driving #rice # Ea9 #ast k #rice.a. 1eld@ no dt9 to disclose 8. (f N Eas sing insider info to screE O and Eas intentionall9 misleading@

then dt9 to disclose and no k c. (f N Eas going on #8lic info Ehich O cold have gotten if he had tried@

then no dt9 to disclose and enforcea8le k d. ;olic9/ generating information is a commodit9@ and Ee Eant to encorage

(. &eed: O home89er ses N realtor for failing to disclose that the hose had 8een site of mlti#le mrder a. 1eld@ dt9 to disclose@ 8Kc materiall9 affects vale of goods and 89er is

likel9 to 8e nder false im#ression.i. :o reason to ask Ehether there has 8een a mrder in a hose

. Hill: +eller of hose failed to disclose #revios termite damage@ " a##eared totake ste#s affirmativel9 to hide it from ins#ector.a. 1eld@ dt9 to disclose 8. e9/ seller has dt9 to disclose facts that/

i. 1e knoEsii. 1e knoEs 89er does not knoE

iii. And that 89er coldnt discover #on reasona8le inir9

2)



:. Conditions

(. estatementa. >22/ ;resm#tion in favor of o8ligee@ e0ce#t Ehere o8ligee controls the

event or has manifestl9 assmed the risk

8. >34/ estittion in favor of the #art9 in 8reach((. 7CC

a. >2-3*/ Defalt rle is for deliver9 of goods in single lot and single #a9ment@ 8t #arties can contract for #eriodic deliver9K#a9ment

(((. &0#ress Conditionsa. Gray: ;romissor9 note conditioned #on amont of s#erm oil that arrives

8efore a certain date. Final shi#ment arrived after midnight.i. 1eld@ 8oat did not arrive on timeJ so #romisor still oEed G

ii. 'here there is a clear@ e0#ress condition@ no slack is given to the #erson 8etting on the condition. Brden is on o8ligor to #rovethat condition is or isnt met ?i.e.@ that o8ligation is released

8. +ar#on#: Architect k #a9s more G the frther the #ro=ect advances@ and fll #a9 is conditioned on loan going throgh. Architect did %5S of total Eork@ #aid in #art@ then #ro=ect didnt ha##en 8Kc coldnt get loan.

i. 1eld@ no o8ligation to #a9 8Kc o8ligation conditioned on loan). O had actal knoEledge that loan hadnt 8een o8tained

ii. !therEise@ oEner Eold have to #a9 G45 for Eork he coldntse@ and Ehere he hadnt assmed a risk

(. Constrctive Conditions " !rder of ;erformancea. King#ton: &nglish case@ sa9ing there are 2 t9#es of condition k/ conditions

#recedent@ Ehere ones #erformance is de#endent on #rior #erformance 89

the otherJ and mtal conditions to 8e #erformed at the same time. 8. L+A: EKmtal conditions to 8e #erformed at the same time@ if one #art9

stands read9 and the other neglects@ the first #art9 has flfilled his dt9i. eadiness to #erform reires some otEard shoEing

c. Howard: (nsrance k reired that farmer not #loE nder his rined cro# 8efore ad=stor cold take a look. 1e did an9Ea9J held@ ins. co. still #a9s

i. Cort/ not #loEing Eas a se#arate #romise for Ehich co. can sefor damages@ 8t mst still #a9 the claim

ii. (llstrates #resm#tion of inter#retation that avoids forfeitred. Stewart: Bilder n=stifia8l9 Ealks off the =o8@ having conferred

s8stantial 8enefit. 1eld@ oEner mst #a9 8t damages ca##ed 89 k

i. Dis#te over Ehen 8ilder Eas to 8e #aid/ incrementall9 or at theend. Bilder sa9s incrementall9@ 8t cort Eont im#l9 thatcondition into the k 8ased on normal sage

ii. >34/ mst 8e #aid for 8enefit conferred@ 8t cannot #rofit from 8reach ?mch like ritton

22



!. (m#ossi8ilit9 " (m#ractica8ilit9

(. estatementa. >22/ elief (nclding estittion

((. 7CC

a. >2-6)5/ &0cse 89 failre of #res##osed conditions ?commercialim#ractica8ilit9

i. Comment 4/ increased cost alone doesnt e0cse #erformancenless so heav9 that alters essential natre of k

(((. 0aylor: to se concert hallJ 8ilding 8rns 8efore date of engagement. 1eld@im#ossi8ilit9 of #erformance throgh no falt of either #art9 e0cses 8oth.a. A##lies Ehere #arties mst have contem#lated contined e0istence of a

thing as a necessar9 condition of the k $. &0ce#tion to general rle that #erformance still reired des#ite

nforeseen circmstancesc. Analogos to a #ainter going 8lind and ths 8eing na8le to com#lete a

commissioned #iece

(. 0om*!in#: to finish schoolhose 89 !ct )J %*S com#lete and 8rns !ct 5a. 1eld@ 8ilders sret9 lia8le for cost of com#letion ?i.e.@ Ehole neE

school and conseential damages.$. 'h9 different from 0aylor7

i. N garanteed com#letion on #art of 8ilder ii. +ret9 is in 8i, of assming risk

iii. Lhis t9#e of thing contem#lated 89 the k

. American 0rading: Lhe modern a##roacha. +hi##er chartered a shi# to take goods to (ndiaJ +e, Canal Eas closed@

adding % miles to the tri#. 1eld@ oEner entitled onl9 to k #rice 8Kc kinclded no s#ecific U of da9s or s#ecific rote

i. +e, 8eing o#en ma9 have 8een contem#latedJ 8t e0istence ofEell-knoEn alternative rote means that closing of canal doesntmake it im#ossi8le like in 0aylor

(. "i#hara: Concrete co. s##osed to deliver concrete to EorksiteJ la8or dis#teat Eorksite cased concrete deliver9 g9s not to deliver concrete.a. 1eld@ concrete deliver9 ma9 have 8een na8le to #erform de to

circmstances otside their control.i. De#ends on the fact #atternJ Eas the a8sence of a #icket line a fair

assm#tion for the k to have 8een 8ased on$. Certain risks are so nsal and im#ortant that the9 mst have 8een 8e9ond that Ehich is contem#lated 89 the #arties.

i. &valate ad hoc

23



;. Frstration of ;r#ose

(. estatementa. >22/ elief (nclding estittion 8. >3/ A #art9 Ehose dt9 of #erformance is discharged 89 frstration of

#r#ose or non-occrrence of a condition is entitled to restittion for 8enefit conferred

((. 7CCa. >2-6)4/ +8stitted ;erformance ?reasona8le alternative to a #erformance

that has 8ecome im#ossi8le mst 8e tenderedKacce#ted 8. >2-6)5/ &0cse 89 failre of #res##osed conditions ?commercial

im#ractica8ilit9i. Comment 4/ increased cost alone doesnt e0cse #erformance

nless so heav9 that alters essential natre of k c. >2-6)6/ ;rocedre on notice claiming e0cse

(((. Krell: for V5 to rent room to Eatch coronationJ coronation cancelled de toings illness. 1eld@ #r#ose is frstrated and 8oth #arties are e0cseda. oss lies Ehere it falls Ehen #r#ose is frstrated 8. :o neE V changes hands@ 8t renter doesnt get his doEn #a9ment 8ack

?thogh he didnt seek it

(. 'i$ro#a: &nglish N agrees to #rovide ei#ment to ;olish co.@ Fi8rosa@ andFi8rosa had #t V)@*** doEn #a9ment. Lhen 1itler@ and Fi8rosa sht doEn.1eld@ fll recover9 for V)@*** des#ite N having s#ent V$** 8ilding the stff a. (ndced ;arliament to #ass aE eform ?Frstrated Contracts Act@ Ehich

alloEs N to s8tract his oEn reliance losses from Os restittion 8. +!/

i. Krell: loss lies Ehere it falls ?no 8onceii. 'i$ro#a: restittion ?loss lies Ehere it falls on one 8once

iii. Law &eorm Act: restittion-mins-reliance ?2nd 8once). :!L&/ if no doEn #a9ment@ no reliance damages

. ;olic9/ #ro8lem of deciding Ehats fair Ehere something has ha##ened thatneither #art9 cold #ossi8l9 have antici#ated@ and 9o dont even #retend thatthis #articlar risk has 8een allocated 89 the #arties.a. 7nger arges for s#litting the loss evenl9 8tE the #arties

24



<. 7n=stified :on-;erformance " Lhe ;ro8lem of Forfeitre

(. estatementa. >34/ estittion in favor of #art9 in 8reach

((. 7CC

a. >2-5*$/ +eller entitled to time to cre a defect 8. >2-6*)/ ;erfect Lender le/ 89er ma9 acce#t Ehole@ re=ect Ehole@ or

acce#t #ortions if tender is not e0actl9 as s#ecifiedc. >2-6)2/ B9er ma9 not refse shi#ments Ehose defects do not

s8stantiall9 im#air the vale of the Eholei. Fried/ s8stantial #erformance is not sfficient for deliver9 of

goods ?>2-6*)@ e0ce#t Ehen it is ?other 2 >> here

(((. /#hin#!y: +eller got shirtings to 89er ) da9 lateJ 89er refsed. 1eld@ 89er =stified in refsing the goods.a. ;erfect tender rle/ one da9 late is still late 8. &amire,: cort alloEed 89er to refse metal shi##ed from Erong toEn in

+cotland@ even thogh actal goods Eere e0actl9 right

(. +re#cott: B9er no longer Eants Astralian onions@ and refses them 8Kc thereare 24* crates rather than the 3** agreed. Defect is cased 89 7+ militar9accosting most of the onl9 availa8le shi#. 1eld@ des#ite lack of an9 falt onsellers #art@ #erfect tender rle holds and refsal =stified.a. >2-6)2 changes this rling if decided toda9

. artu#: B9er 8oght hearing aid@ 8t got neEer model. 'anted the oldermodel@ " got fed # and asked for G 8ack. 1eld@ dont have to acce#tre#lacement 8t do have to give seller o##ortnit9 to cre defective shi#menta. >2-5*$ dis#ositive

(. ec! 3 +auli: 'here goods are nieKcstom-made@ 89er mst acce#t themeven if late and then se for damages if desired ?here@ =st 3 da9s.a. +8stantial #erformance sffices for manfactring@ as o##osed to sale of

goods ?e.g.@ 2aco$ 3 4oung#

((. +lante: Minor defects Eere fond in manfactre of a hose@ oEner refses to #a9 8alance of k. Bt oEner Eas living in hose. 1eld@ oEner mst #a9remainder of k #rice less cost of com#leting #erformance.a. ike ec! 3 +auli manfactring k does not alloE 89er to avoid

#a9ment altogether in case of s8stantial #erformancei. !therEise@ 9o have forfeitre/ ma=or loss of G for minor mistake

8. ;olic9/ 9o mst #a9 for an9 8enefit received.

Documents

Contracts - Charles Fried - 2010 Spring - C