Table of Contents
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The Concept of Contract
Introduction
Obligations and the Law
Basic Tools: Appellate Cases
Evolution of the Common Law
The Meaning of the Common Law
How to Analyze an Opinion
Laidlaw v. Organ
The Court's Opinion: Laidlaw v. Organ
Thoughts and Questions on Laidlaw v. Organ
Legal Documents and Instruments
Contracts and Writing
Interpretation as an Essential Element in Contracts
Introduction
The Secret Code
100% Pure Fescue
Restatement 2d Contracts § 202
Standard Form Contracts: Introduction
Which Paradigm?
Contracts of Adhesion
Sara's Laptop
Introduction to the Problem
The Customer Service Rep
The Problem
Norcia v. Samsung Telcoms. Am., LLC
The Court’s Opinion: Norcia v. Samsung Telcoms. Am., LLC
Thoughts and Questions on Norcia v. Samsung Telcoms. Am., LLC and the Sara’s Laptop Problem
Expectation
Introduction
The Aristotle Model
Justification for Contract Remedies
Fuller & Perdue
Aristotle's Equilibrium Theory
Applying the Aristotle Model
Introduction
Bad Policy
Restatement 2d Contracts § 373
What Promises Do We Enforce?
Introduction
The Seal in Anglo American Law
Contract as Bargain
Bargain: The Classic Paradigm
Hamer v. Sidway
The Court's Opinion: Hamer v. Sidway
Thoughts and Questions on Hamer v. Sidway
Measure of Persuasiveness
Testing the Measure of Persuasiveness
Variations of Hamer
Hamer v. Sidway: First Scenario
Hamer v. Sidway: A Variation
Dougherty v. Salt
The Court's Opinion: Dougherty v. Salt
Other Legal Materials
What is the Restatement?
The Law's Response
The Professor's Offer
Defining the Classical Bargain
The Elements of Consideration
The Tent Hypo
Langer v. Superior Steel Corp.
The Court's Opinion: Langer v. Superior Steel Corp.
Thoughts and Questions on Langer v. Superior Steel Corp.
Fiege v. Boehm
Thinking in Different Terms
The Court's Opinion: Fiege v. Boehm
Thoughts and Questions on Fiege v. Boehm
What Does Bargain Exclude?
United States v. Meadors
The Court's Opinion: United States v. Meadors
Thoughts and Questions on United States v. Meadors
Professor Commentary
Colloquium
Professor James Gordley
Other Issues in Bargained For Exchange
The Psychic Hotline
Nominal Consideration
Undercurrents
Fossilization
What is Fossilization?
Thoughts and Questions on Fossilization
Legitimation
The Concept of Legitimation
Examples of Legitimation
The Waning of Consideration
Introduction
The Doctrine of Mutuality
The Start Up
The Traditional Meaning of Mutuality
Introduction
McMichael v. Price
The Modern Meaning of Mutuality
Territorial Dispute
Wood v. Lucy, Lady Duff-Gordon
Thoughts and Questions on Wood v. Lucy, Lady Duff-Gordon
Good Faith
Implication and Imposition
Exclusive Dealing Contracts
Requirement and Output Contracts
UCC Section 2-306
Thoughts and Questions on Requirements and Output Contracts
Personal Satisfaction and Termination Clauses
Background on Personal Satisfaction and Termination Clauses
Omni Group v. Seattle-First National Bank
Omni Group v. Seattle-First National Bank
What is an "Illusory" Promise?
Has the Definition of Illusory Promises Changed?
Modified Contracts
Modification and Extortion
Introduction
Johnny Guitar
Version 1 of Johnny Guitar
Version 2 of Johnny Guitar
Origins of the Legal Duty Rule
Levine v. Blumenthal
The Court's Opinion: Levine v. Blumenthal
Thoughts and Questions on Levine v. Blumenthal
UCC Section 2-209
Restatement (2d) of Contracts Section 89
Professor Commentary
Professor Amy Chua
Formality
Formality, the Restatement, and the UCC
Firm Offers
The Future of Consideration
What Does the Future Hold?
Professor Colloquium
Practitioner Perspective
Revisiting Defining the Classical Bargain
Beyond Consideration
The Dangers of Categorization
Restitution
Introduction
Background on Restitution
Gigi
The Historical Role of Restitution
Restitution and Quasi Contracts
Glenn v. Savage
Cotnam v. Wisdom
Thoughts and Questions on Glenn v. Savage and Cotnam v. Wisdom
The Elements of Restitution
Introduction
Restitution as an Independent Cause of Action
Restitution as a Contract Remedy
Components of a Restitution Claim
Enrichment
Injustice
The Effect of a Contract
The Effect of an Unenforceable Contract
Special Items
Adrienne Davis
Slave Policies: New York Times Article
Promissory Restitution (Moral Obligation)
Introduction
Past Consideration
Mills v. Wyman
Webb v. McGowin
Restatement (2d) of Contracts Section 86
Thoughts and Questions on MIlls v. Wyman and Webb v. McGowin
Promissory Estoppel
Introduction
The Restoration of Reliance
Introduction
The Emergence of Promissory Estoppel
The Good, the Bad, and the BMW
Ricketts v. Scothern
Thoughts and Questions on Ricketts v. Scothern
Elements of Promissory Estoppel
The Restatements
Reliance Under the Restatements
The First Restatement of Contracts Section 90
The Restatement (2d) of Contracts Section 90
Reliance Elements
Other Restatement Provisions
Thoughts and Questions on Promissory Estoppel
It's Yours
Feinberg v. Pfeiffer Co.
Thoughts and Questions on Feinberg v. Pfeiffer Co.
At-Will Employment
Forrer v. Sears, Roebuck & Co.
Grouse v. Group Help Plan, Inc.
Thoughts and Questions on Forrer v. Sears, Roebuck & Co. and Grouse v. Group Health Plan, Inc.
Other Dimensions
Professor Commentary on Justice and Fairness
Professor James Gordley
Honorable Frank Easterbrook
Professor James Gordley
Hoffman v. Red Owl Stores, Inc.
The Court's Opinion: Hoffman v. Red Owl Stores, Inc.
Thoughts and Questions on Hoffman v. Red Owl Stores, Inc.
Professor Amy Chua
Colloquium
Contracts and Public Policy
Freedom of Contract
Contracts and Illegality
The Notion of Illegality
Introduction
Other Thoughts on Illegality
Holland v. Morse Diesel International, Inc.
The Court's Opinion: Holland v. Morse Diesel International, Inc.
Thoughts and Questions on Holland v. Morse Diesel International, Inc.
Who Can Contract
The Issue of Capacity
Halbman v. Lemke
The Court's Opinion: Halbman v. Lemke
Thoughts and Questions on Halbman v. Lemke
Unequal Bargains
Jennifer's Mom
Batsakis v. Demotsis
The Court's Opinion: Batsakis v. Demotsis
Thoughts and Questions on Batsakis v. Demotsis
How Absolute is the No Inquiry Rule?
More on Unequal Bargains
Beyond the Doctrine
Do we save businesses from major mistakes?
Contracts and Social Choice
The Frozen Embryo Dilemma
Kass v. Kass
The Court's Opinion: Kass v. Kass
AZ v. BZ
The Court's Opinion: AZ v. BZ
Thoughts and Questions
Professor Commentary
Professor Stanley Hauerwas
Professor Dorianne Lambelet Coleman
Srobona Chatterjee, MD
Beyond the Doctrine
Talk of the Nation
Professor Commentary
Colloquium on Freedom of Contract
Markets and Globalization
The Objective Theory
Introduction
The Subjective Objective Dichotomy
The Subjective Theory
100% Pure Fescue
The Secret Code
Raffles v. Wichelhaus
The Court's Opinion: Raffles v. Wichelhaus
Thoughts and Questions on Raffles v. Wichelhaus
The Objective Theory
Embry v. Hargardine McKittrick Dry Goods Co.
The Court's Opinion: Embry v. Hargardine McKittrick Dry Goods Co.
Variations on Embry
Lucy v. Zehmer
The Court's Opinion: Lucy v. Zehmer
A Modern Version Lucy v. Zehmer
Thoughts and Questions on Lucy v. Zehmer
Professor Commentary
Professor Walter Brueggemann
Issues in Cognition
Puffery in Advertising
Limitations on Cognition
Readings on Human Cognition
Information and Disappointment
Information and Contract Formation
What Degree of Honesty is Required
Information and Selling
Fraud and Intentional Misrepresentation
The Issue of Fraud
Vokes v. Arthur Murray, Inc.
The Court's Opinion: Vokes v. Arthur Murray, Inc.
Thoughts and Questions on Vokes v. Arthur Murray Inc
A Different Perspective on Vokes
Intent to Deceive
A Note on Intent in Fraud
Misrepresentation Without Fraud
A Better Engine
Norton v. Poplos
The Court's Opinion: Norton v. Poplos
Thoughts and Questions on Norton v. Poplos
Contracting Out of One's Own Misrepresentations
Special Items
The Law's Preoccupation With Fault
Warranties
Discussing the Sale
The Meaning of Warranty
Warranties and the UCC
UCC Warranties
Thoughts and Questions on UCC Warranties
What Must be Disclosed
Laidlaw v. Organ
The Court's Opinion: Laidlaw v. Organ
Thoughts and Questions on Laidlaw v. Organ
Caveat Emptor
Notes on the Doctrine of Caveat Emptor
Theories of Disclosure
Hill v. Jones
Richey v. Patrick
The Court's Opinion: Richey v. Patrick
Thoughts and Questions on Richey v. Patrick
Documents Relating to Disclosure
North Carolina Real Estate Contract
General Real Estate Disclosure Form
Article What Health Problems Do Meth Labs Cause
Dave Ramsey Excerpt
Massachusetts Psychologically Impacted Properties Statute
Puzzles and Problems
The Violin Puzzle
Value Enhancing Information
Repeat Sellers
Is Disclosure Logically Compelled?
Professor Commentary
Professor Richard A Epstein
Professor James Gordley
Beyond the Doctrine
Attorney Deborah Hylton
Good Faith
Introduction
Preliminary Questions
Lake City Beer
Carmichael v. Adirondack Bottled Gas Corp.
The Court's Opinion: Carmichael v. Adirondack Bottled Gas Corp
Hardly the Time
Market Street Associates v. Frey
The Court's Opinion: Market Street Associates v. Frey
Honorable Richard Posner
The Content of the Duty of Good Faith
The Scope of the Duty
Understanding the Concept
Professor James Gordley
Employment at Will Contracts
Problems in Termination
Take this Job
Fortune v. the National Cash Register Co
The Court's Opinion: Fortune v. National Cash Register Co.
Thoughts and Questions on At Will Employment
Policy Issues
Professor Richard A Epstein
A Comparative Law Perspective
Mutual Mistake
The Yard Sale
Beachcomber Coins, Inc. v. Boskett
The Court's Opinion: Beachcomber Coins, Inc. v. Boskett
Thoughts and Questions on Beachcomber Coins, Inc. v. Boskett
Lenawee County Board of Health v. Messerly
The Court's Opinion: Lenawee County Board of Health v. Messerly
Thought and Questions on Lenawee County Board of Health v. Messerly
When is the Risk Allocated?
Changed Circumstances
Uncertainty
Impossibility and Impracticability
Stranded
Taylor v. Caldwell
The Court's Opinion: Taylor v. Caldwell
Thoughts and Questions on Taylor v. Caldwell
Canadian Industrial Alcohol Company, Ltd. v. Dunbar Molasses Co.
The Court's Opinion: Canadian Industrial Alcohol Company, Ltd. v. Dunbar Molasses Co.
Thoughts and Questions on Canadian Industrial Alcohol Co. v. Dunbar Molasses Co.
The UCC Provisions
The Problem of Increased Costs
Frustration of Purpose
The Company Picnic
7200 Scottsdale Rd. General Partners v. Kuhn Farm Machinery
The Court's Opinion: 7200 Scottsdale Rd. General Partners v. Kuhn Farm Machinery
Thoughts and Questions on 7200 Scottsdale Rd. General Partners v. Kuhn Farm Machinery
Revisiting Jennifer's Mom
Offer and Acceptance
Introduction
Preliminary Issues
The Classical Paradigm
Tell Ya What I Can Do
Offer
Introduction
What is an Offer?
"No! We Have a Deal!" Version 1
"No! We Have a Deal!" Version 2
Restatement (2d) of Contracts Section 24 and 26
Lonergan v. Skolnick
The Court's Opinion: Lonergan v. Skolnick
A Chronology
Thoughts and Questions on Offers
The Catalogue Order
Dickinson v. Dodds
The Court's Opinion: Dickinson v. Dodds
Thoughts and Questions on Revocation of Offers
Acceptance
Introduction
Issues in Acceptance
Second Thoughts
Restatement (2d)of Contracts Section 32 and A Problem
Restatement (2d) of Contracts Section 33
Restatement (2d) of Contracts Section 50
Restatement (2d) of Contracts Section 51
Restatement (2d) of Contracts Section 53
Restatement (2d) of Contracts Section 54
Restatement (2d) of Contracts Section 56
Restatement (2d) of Contracts Section 58
Restatement (2d) of Contracts Section 59
Restatement (2d) of Contracts Section 60
Restatement (2d) of Contracts Section 61
Restatement (2d) of Contracts Section 62
Restatement (2d) of Contracts Section 63
Restatement (2d) of Contracts Section 65
Restatement (2d) of Contracts Section 67
Restatement (2d) of Contracts Section 68
Restatement (2d) of Contracts Section 69
Acceptance by Promise
Restatement (2d) of Contracts Section 50
UCC Section 2-206
Restatement (2d) of Contracts Sections 63 and 66
Morrison v. Thoelke
The Court's Opinion: Morrison v. Thoelke
Thoughts and Questions on the Mailbox Rule
Arguments about the Mailbox Rule
Restatement (2d) of Contracts Section 69
Acceptance by Performance
Restatement (2d) of Contracts Section 45
Petterson v. Pattberg
The Court's Opinion: Petterson v. Pattberg
Thoughts and Questions on Petterson v. Pattberg
Mutual Assent and Consideration
My First Big Sale
Glover v. Jewish War Veterans
She Got What She Wanted
The Court's Opinion: Glover v. Jewish War Veterans
Thoughts and Questions on Glover v. Jewish War Veterans
Industrial America, Inc. v. Fulton Industries, Inc.
The Court's Opinion: Industrial America, Inc. v. Fulton Industries, Inc.
Thoughts and Questions on Industrial America, Inc. v. Fulton Industries, Inc.
Pragmatic Alternatives
Introduction
Options
Traditional Options
Options Created by Reliance
Restatement (2d) of Contracts Section 25
Restatement (2d) of Contracts Section 45
Restatement (2d) of Contracts Section 87
UCC Section 2-205
Option Alternatives
Qualified Acceptance
Introduction
Overview
The Employee's Input
The Mirror Image Rule
Poel v. Brunswick-Balke-Collender Co. of NY
The Court's Opinion: Poel v. Brunswick-Balke-Collender Co. of NY
Thoughts and Questions on Poel v. Brunswick-Balke-Collender Co. of NY
Professor Commentary
Professor Melvin A. Eisenberg
The Battle of the Forms
UCC Section 2-207
Incomplete Agreements
Introduction
Overview
Pack the Place Out
Joseph Martin Jr. Delicatessen, Inc v. Schumacher
The Court's Opinion: Joseph Martin Jr. Delicatessen, Inc v. Schumacher
Thoughts and Questions on Joseph Martin Jr. Delicatessen, Inc v. Schumacher
Restatement (2d) of Contracts Section 33
UCC Section 2-204
Empro Manufacturing Co., Inc. v. Ball-Co Manufacturing, Inc.
The Court's Opinion: Empro Manufacturing Co., Inc. v. Ball-Co Manufacturing, Inc.
Thoughts and questions on Empro Manufacturing Co., Inc. v. Ball-Co
Professor Commentary
Professor Richard E. Speidel
Professor Girardeau A. Spann
Professor Richard E. Speidel
Bargaining and Power
Introduction
The Issue of Bargaining and Power
If You're Not Happy, We're Not Happy
Form Contracts Cases
Merit Music Service, Inc. v. Sonneborn
The Court's Opinion: Merit Music Service, Inc. v. Sonneborn
Thoughts and Questions on Merit Music Service, Inc. v. Sonneborn
Honorable Richard Posner
Norcia v. Samsung Telecommunications, LLC
Form Contracts: Commentary
The Uses of Form Contracts
Perspective on Form Contracts
Procedural Rights
Professor Paul Carrington
A Better Doctrinal Framework?
Unconscionability
Introduction
Overview
Vamoose
The Equitable Origins
UCC Section 2-302
The UCC and the Modern Doctrine
James v National Financial, LLC
Hanjy v Arvest Bank
Deference to Writings
Introduction
The Statute of Frauds
Historical Origins
The Original Statute of Frauds
CR Klewin, Inc. v. Flagship Properties, Inc.
The Court's Opinion: CR Klewin, Inc. v. Flagship Properties, Inc.
Thoughts and Questions on CR Klewin, Inc. v. Flagship Properties, Inc.
Keeping it Simple
UCC Section 2-201 and Restatement 2d Section 125
Professor Commentary
Professor John C. Weistart
The Parol Evidence Rule
The Delivery Date
Analyzing the Rule
Two Classic Cases
Mitchell v. Lath
Masterson v. Sine
Thoughts and Questions on Mitchell v. Lath and Masterson v. Sine
Contrasting the Two Doctrines
Ambiguity and Interpretation
Introduction
Previous Encounters with Meaning
100% Pure Fescue
The Secret Code
Two Contrasting Cases
Pacific Gas and Electric Company v. G.W. Thomas Drayage & Rigging Company, Inc.
Trident Center v. Connecticut General Life Insurance Company
Thoughts and Questions on Plain Meaning
SCA Promotions, Inc. v Yahoo!, Inc.
Professor Colloquium
Remedies
When is There a Breach?
Anticipatory Repudiation
Hochster v. De La Tour
The Court’s Opinion in Hochster v. De La Tour
Thoughts and Questions on Hochster v. De La Tour
Substantial Performance
The Court’s Opinion in Jacob & Youngs, Inc. v. Kent
Variations on Jacob & Youngs
Version 1
Version 2
Thoughts and Questions on Jacob & Youngs, Inc. v. Kent
Introduction to Remedies
The Problem of Remedies
The Basic Formula
Introduction
Historical Perspective
Questioning the Norm
Commentary
Professor James R. Gordley
Professor Richard E. Speidel
Professor Elizabeth Hayes Patterson
Attorney J. Scott Merrell
The Mechanics of Damages
Calculating Damages
General Damages Problem
The UCC Approach
Seller's Remedies Problem
The Sandal Sale Problem
UCC Provisions
UCC Section 2-703
UCC Section 2-706
UCC Section 2-708
UCC Section 2-709
UCC Section 2-710
Buyer's Remedies Problem
The Robotic Painter Problem
UCC Provisions
UCC Section 2-711
UCC Section 2-712
UCC Section 2-713
UCC Section 2-714
UCC Section 2-715
UCC Section 2-716
UCC Section 2-717
Problems of Measurement
Uncertainty in Damages
The Child Care Dilemma
The Blue Camry
Economic Waste
Peevyhouse v. Garland Coal & Mining Company
Thoughts and Questions on Peevyhouse v. Garland Coal & Mining Company
Lost Volume Sales
Background on the Lost Volume Sales
Memo and a Problem on Lost Volume Issues in Retail Car Sales
Additional Losses
Consequential Damages
Race Day
Hadley v. Baxendale
The Court's Opinion: Hadley v. Baxendale
Thoughts and Questions on Hadley v. Baxendale
Professor James R. Gordley
The UCC Approach
Liquidated Damages
Introduction
Historical Perspective
Wasserman's Inc. and Jo-Ro, Inc. v. Township of Middletown
The Court's Opinion: Wasserman's Inc. and Jo-Ro, Inc. v. Township of Middletown
Thoughts and Questions on Wasserman's Inc. and Jo-Ro, Inc. v. Township of Middletown
Liquidated Damages Under the UCC and the Restatement, Second
Professor Commentary
Professors Broome, Epstein, Speidel, Chua, Baird, Hayes, Patterson, Eisenberg
Equitable Remedies
Introduction
Overview
The Ad Campaign
The Sale of Real Property
Van Wagner Advertising Corp. v. S&M Enterprises et al.
The Court's Opinion: Van Wagner Advertising Corp. v. S&M Enterprises et al.
Thoughts and Questions on Van Wagner Advertising Corp. v. S&M Enterprises et al.
The Next Plane
Covenants Not to Compete
Introduction
Overview
The Plumber's Covenant
Hopper v. All Pet Animal Clinic, Inc.
The Court's Opinion: Hopper v. All Pet Animal Clinic, Inc.
Thoughts and Questions on Hopper v. All Pet Animal Clinic, Inc.
Application Group Inc v Hunter Group Inc
The Court's Opinion: Application Group, Inc. v. Hunter Group, Inc.
Thoughts and Questions on Hopper v. All Pet Animal Clinic, Inc.
Covenants Not to Compete and Low-Wage Employees
Note: Are Covenants Not to Compete Enforceable Against Low-Wage Employees?
Appendix
The Acquisition
The Territorial Dispute (Second Version)
Technology Risks
Bad Policy
Reading Pipe
Keeping It Simple
The Inventory Software
The Suggestion Box
Payment Due
The Rare Book
The Contracts Experience
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