Contract Law: Rules, Cases and Problems

Welcome to Contract Law
	A. What Is Contract Law?
	B. Origins of Contract Law
	C. Law and Equity
	D. The Restatement of Contracts
	E. The Uniform Commercial Code
	F. Why Does Contract Law Exist?
	G. Subjective Meeting of the Minds versus Objective Mutual Assent
	H. Samuel Williston: Legal Objectivism
	I. Arthur Linton Corbin: Realist and Subjectivist
	J. Reflections on Contract Law
MODULE I. Contract Foundations
	Chapter 1. What Is a Contract?
		RULES
			A. Contract
			B. Promise
			C. Agreements and Bargains
			D. Contracts-at-Law and Contracts-at-Equity
			E. Reflections on Contracts, Promises, Agreements, and Bargains
		CASES
			Steinberg v. Chicago Med. Sch., 69 Ill. 2d 320 (1977)
			Pappas v. Bever, 219 N.W.2d 720 (Iowa 1974)
		PROBLEMS
			Problem 1.1. Contract, Agreement, or Bargain?
			Problem 1.2. The Monster and the Beast
			Problem 1.3. Harassment in Hawaii
			Problem 1.4. Lifelong Employment
	Chapter 2. Who Can Contract?
		RULES
			A. Guardianship
			B. Infancy
			C. Mental Illness
			D. Intoxication
			E. Reflections on Capacity to Contract
		CASES
			Webster St. P'ship, Ltd. v. Sheridan, 220 Neb. 9 (1985)
			Est. of McGovern v. Com. State Employees' Ret. Bd., 512 Pa. 377 (1986)
		PROBLEMS
			Problem 2.1. The Infant and the Lemon
			Problem 2.2. Bipolar Disorder & Contractual Capacity
			Problem 2.3. The Italian Gambler
MODULE II. Mutual Assent
	Chapter 3. Bargains
		RULES
			A. Contracts-at-Law
			B. Formal Contracts
			C. Contracts-at-Equity
			D. Manifestation of Mutual Assent
			E. Misunderstanding: Failure of Mutual Assent
			F. Reflections on Mutual Assent
		CASES
			Lucy v. Zehmer, 196 Va. 493 (1954)
			Raffles v. Wichelhaus, 2 EWHC Exch J19 (1864) (?Peerless?)
		PROBLEMS
			Problem 3.1. Can Machines Form Mutual Assent?
			Problem 3.2. Misunderstanding the Triangle
	Chapter 4. Offers
		RULES
			A. Preliminary Negotiations
			B. Certainty
			C. Advertisements as Offers
			D. Catalogs as Offers
			E. Bids and Price Quotes as Offers
			F. Offers for Rewards
			G. Reflections on the Offer
		CASES
			Lefkowitz v. Great Minn. Surplus Store, Inc., 251 Minn. 188 (1957)
			Leonard v. Pepsico, Inc., 88 F. Supp. 2d 116 (S.D.N.Y. 1999)
			Acad. Chicago Publishers v. Cheever, 144 Ill. 2d 24 (1991)
		PROBLEMS
			Problem 4.1. Lexus Advertisement
			Problem 4.2. Volvo Advertisement
			Problem 4.3. Definite Commission
	Chapter 5. Termination of the Offer
		RULES
			A. Rejection
			B. Counter-Offer
			C. Lapse of Time
			D. Revocation
			E. Revocation of General Offer
			F. Irrevocability
			G. Death or Incapacity of the Offeror or Offeree
			H. Reflection on Duration of the Offer
		CASES
			Smaligo v. Fireman?s Fund Ins. Co., 432 Pa. 133 (1968)
			Yaros v. Trustees of U. of Pa., 742 A.2d 1118 (Pa. Super. Ct. 1999)
		PROBLEMS
			Problem 5.1. The Prisoners? Rejection and the Master Plan
			Problem 5.2. A MINI Lapse
			Problem 5.3. Docked Out Settlement
	Chapter 6. Acceptance
		RULES
			A. Acceptance Under the Common Law: The Mirror Image Rule
			B. Acceptance Under the UCC: Battle of the Forms
			C. The Mailbox Rule
			D. Reflections on Acceptance
		CASES
			State Dep?t of Transp. V. Providence & Worcester R. Co., 674 A.2d 1239 (R.I. 1996) (?P & W RR?)
			Flender Corp. V. Tippins Intern., Inc., 830 A.2d 1279 (Pa. Super. 2003)
		PROBLEMS
			Problem 6.1. Primo Ladders
			Problem 6.2. An Earnest Letter
			Problem 6.3. Conditional Acceptance of a Court Order
MODULE III. Consideration and Alternatives to Consideration
	Chapter 7. Consideration
		RULES
			A. The Historical Benefit/Detriment Theory
			B. The Modern Bargained-For Exchange Theory
			C. Gratuitous Promises Are Not Supported by Consideration
			D. Conditional Gifts Are Not Consideration
			E. ?Past Consideration? Is Not Consideration
			F. Illusory Promises Are Not Consideration
			G. Nominal Consideration Is Not Consideration
			H. Reflections on Consideration
		CASES
			Hamer v. Sidway, 124 N.Y. 538, 27 N.E. 256 (1891)
			Pennsy Supply, Inc. v. American Ash Recycling Corp., 895 A.2d 595 (Pa. Super. Ct. 2006).
		PROBLEMS
			Problem 7.1. An Aunt?s Promise
			Problem 7.2. Betty and the Benefit
			Problem 7.3. Shifting Sands
	Chapter 8. Promissory Estoppel
		RULES
			A. Theory of Promissory Estoppel
			B. Promise Reasonably Including Action or Forbearance
			C. Reliance on the Promise
			D. Justice Requires Enforcing the Promise
			E. Reflections on Promissory Estoppel
		CASES
			Ricketts v. Scothorn, 57 Neb. 51, 77 N.W. 365 (1898)
			Conrad v. Fields, 2007 WL 2106302 (Minn. Ct. App. 2007)
			Otten v. Otten, 632 S.W.2d 45 (1982)
			Maryland Nat. Bank v. United Jewish Appeal Fed'n of Greater Washington, Inc., 286 Md. 274 (1979)
		PROBLEMS
			Problem 8.1. Escaped Bull
			Problem 8.2. Plantations Steel
	Chapter 9. Promissory Restitution
		RULES
			A. Promise to Pay for Benefit Received
			B. Promise to Correct a Mistake
			C. Promise to Pay for Emergency Services and Necessaries
			D. Promise to Pay for a Past Gift
			E. Promise to Pay for an Unpaid Contract
			F. Promise to Pay for an Unenforceable Contract
			G. Reflections on Promissory Restitution
		CASES
			Mills v. Wyman, 20 Mass. 207 (1825)
			Drake v. Bell, 55 N.Y.S. 945 (App. Div. 1899)
			Webb v. McGowin, 27 Ala. App. 82 (1936)
			Haynes Chem. Corp. v. Staples & Staples, 133 Va. 82 (1922)
			Edson v. Poppe, 124 N.W. 441 (S.D. 1910)
			Muir v. Kane, 55 Wash. 131 (1909)
		PROBLEMS
			Problem 9.1. IRAC Edson
			Problem 9.2. Annihilation of Consideration
MODULE IV. Defenses
	Incapacity
	Chapter 10. The Statute of Frauds
		RULES
			A. Classes of Contracts Requiring Signed Writing (MYLEGS)
			B. Satisfaction of the Statute of Frauds
			C. Exceptions to the Statute of Frauds
			D. Reflections on the Statute of Frauds
		CASES
			McIntosh v. Murphy, 52 Haw. 29, 469 P.2d 177 (1970)
			Stearns v. Emery-Waterhouse Co., 596 A.2d 72, 73 (Me. 1991)
			Sterling v. Taylor, 40 Cal. 4th 757 (2007)
			Howard Const. Co. v. Jeff-Cole Quarries, Inc., 669 S.W.2d 221 (Mo. Ct. App. 1983)
			Crabtree v. Elizabeth Arden Sales Corp., 305 N.Y. 48 (1953)
			Barwick v. Gov't Employee Ins. Co., 2011 Ark. 128 (2011)
		PROBLEMS
			Problem 10.1. Perpetuating Frauds
			Problem 10.2. Frauds Policy
			Problem 10.3. UCC Frauds
			Problem 10.4. Text Signatures
	Chapter 11. Mistake
		RULES
			A. Unilateral Mistake
			B. Mutual Mistake
			C. Mistranscription
			D. Reflections on Mistake
		CASES
			Wood v. Boynton, 64 Wis. 265 (1885)
			DePrince v. Starboard Cruise Services, Inc., 271 So. 3d 11 (Fla. 3d Dist. App. 2018)
			Sherwood v. Walker, 66 Mich. 568 (1887)
		PROBLEMS
			Problem 11.1. A Mistaken Dream
			Problem 11.2. A Foundational Mistake
			Problem 11.3. A Policy Mistake
	Chapter 12. Misrepresentation, Duress & Undue Influence
		RULES
			A. Misrepresentation
			B. Duress
			C. Undue Influence
			D. Reflections on Misrepresentation, Duress, and Undue Influence
		CASES
			Barrer v. Women?s Nat. Bank, 761 F.2d 752 (1985)
			Nigro v. Lee, 63 A.D.3d 1490 (2009)
			Quebodeaux v. Quebodeaux, 102 Ohio App.3d 502 (1995)
		PROBLEMS
			Problem 12.1. Motor Home Misrepresentation
			Problem 12.2. The Blodgetts Under Duress
			Problem 12.3. Undue Bequest
MODULE V. Interpretation
	Chapter 13. Classifying Contractual Evidence
		RULES
			A. Evidence of Contractual Meaning
			B. Conflicting Evidence
			C. Evidence Regarding Circumstances
			D. Hierarchy of Evidence
		CASES
			Frigaliment Importing Co., Ltd., v. B.N.S. Int?l Sales Corp, 190 F. Supp. 116 (S.D.N.Y. 1960)
			N?n?kuli Paving & Rock Co. v. Shell Oil Co., 664 F.2d 772 (9th Cir. 1981)
		PROBLEMS
			Problem 13.1. IRAC Frigaliment
	Chapter 14. Evaluating Intrinsic Contractual Evidence
		RULES
			A. Ambiguity
			B. Semantic Canons
			C. Policy Canons
		CASES
			In re Motors Liquidation Co., 447 B.R. 142 (Bankr. S.D.N.Y. 2011)
		PROBLEMS
			Problem 14.1. Matching the Canons of Construction to Case Applications
			Problem 14.2. Homeowner?s Insurance?
			Problem 14.3. What Is a ?Cartoon??
			Problem 14.4. Meaning of a Comma
			Problem 14.5. Vesting in Retirement
	Chapter 15. The Parol Evidence Rule
		RULES
			A. Excluding Parol (Oral) Evidence
			B. Reflections on Parol Evidence
		CASES
			Gianni v. R. Russel & Co., 281 Pa. 320 (1924)
			UAW?GM Human Res. Ctr. v. KSL Recreation Corp., 228 Mich.App. 498 (1998)
			Sierra Diesel Injection Serv., Inc. v. Burroughs Corp, 874 F.2d 653 (9th Cir. 1989)
		PROBLEMS
			Problem 15.1. Comparing the Common Law and the UCC
			Problem 15.2. Capitol City Liquor Company
			Problem 15.3. Middletown Concrete Products
			Problem 15.4. Corn Delivery
			Problem 15.5. Injury and Indemnity
	Chapter 16. Evaluating Extrinsic Evidence
		RULES
			A. Course of Performance
			B. Course of Dealing
			C. Usage and Trade Usage
			D. Implied Terms of Good Faith and Fair Dealing
			E. Reflections on Interpretation
		CASES
			Wood v. Lucy, Lady Duff-Gordon, 222 N.Y. 88 (1917)
			Fisher v. Congregation B?Nai Yitzhok, 177 Pa.Super. 359 (1955)
			First Nat?l Bank of Lawrence v. Methodist Home for the Aged, 181 Kan. 100 (1957)
		PROBLEMS
			Problem 16.1. Output of Toasted Bread
			Problem 16.2. Requirements for Corrugated Paper Boxes
MODULE VI. Performance and Breach
	Chapter 17. Conditions
		RULES
			A. Conditional Obligations
			B. Classes of Conditions
			C. Promissory Conditions
			D. Express Conditions
			E. Implied Conditions
			F. Conditions of Satisfaction
			G. Non-Occurrence of a Condition
			H. Express and Implied Conditions
			I. Satisfaction of the Obligor as a Condition
			J. Excuse of a Condition to Avoid Forfeiture
			K. Event that Terminates a Duty
			L. Reflections on Conditions
		CASES
			Morrison v. Bare, 2007 WL 4415307 (Ct. App. Ohio 2007)
			Internatio-Rotterdam, Inc. v. River Brand Rice Mills, Inc., 259 F.2d 137 (2d Cir. 1958)
			Morin Building Products Co., Inc. v. Baystone Const, Inc., 717 F.2d 413 (7th Cir. 1983)
		PROBLEMS
			Problem 17.1. Renewal of a Restaurant Lease
			Problem 17.2. Financial Satisfaction
	Discharge by Complete Performance
	Chapter 18. Substantial Performance
		RULES
			A. ?Kingston Covenants?
			B. Exchange of Mutual Promises
			C. Implied Conditions
			D. Benefit of the Bargain
			E. Effect of Performance and Non-Performance
			F. Evaluating Substantial Performance
			G. Evaluating Total Breach
			H. Evaluating Performance and Breach Under UCC
			I. Reflections on Substantial Performance
		CASES
			Kingston v. Preston, 99 Eng. Rep. 437 (K.B. 1773)
			Jacob & Youngs, Inc. v. Kent, 230 N.Y. 239 (1921)
			Khiterer v. Bell, 800 N.Y.S.2d 348 (Civ. Ct. 2005)
		PROBLEMS
			Problem 18.1. Direct Timber Shipment
			Problem 18.2. Sewer System
			Problem 18.3. Newspaper Stock
	Chapter 19. Anticipatory Repudiation
		RULES
			A. What Counts as a Repudiation?
			B. Effect of Repudiation
			C. Retraction of Express Repudiation
			D. Failure to Assure as Implied Repudiation
			E. Reflections on Repudiation
		CASES
			McCloskey & Co. v. Minweld Steel Co., 220 F.2d 101 (3d Cir. 1955)
			Hornell Brewing Co., Inc. v. Spry, 174 Misc.2d 451 (N.Y. 1997)
		PROBLEMS
			Problem 19.1. The Rumored Bankruptcy
			Problem 19.2. Circuit Boards
			Problem 19.3. Graphics Cards I
			Problem 19.4. Graphics Cards II
	Chapter 20. Excuse
		RULES
			A. Impracticability
			B. Frustration of Purpose
			C. UCC Excuses
			D. Reflections on Excuse
		CASES
			Taylor v. Caldwell, 122 E.R. 309 (1863)
			Krell v. Henry, 2 K.B. 740 (1903)
			Transatlantic Financing Corp. v. United States, 363 F.2d 312 (D.C. Cir. 1966)
			Adbar, L.C. v. New Beginnings C-Star, 103 S.W.3d 799 (Mo. Ct. App. 2003)
		PROBLEMS
			Problem 20.1. Super Bowl LV
			Problem 20.2. Lot Number 1285
			Problem 20.3. Excessive Rain
	Chapter 21. Assent
		RULES
			A. The Traditional Pre-Existing Duty Rule
			B. Modern Relaxation of the Pre-Existing Duty Rule
			C. Substitution, Novation, Accord and Satisfaction
			D. Recission and Release
			E. Assignment and Delegation
			F. Conclusion: Modification and Discharge by Assent
		CASES
			Alaska Packers Association v. Domenico et al., 117 F. 99 (9th Cir. 1902)
			Angel v. Murray, 113 R.I. 482 (1974)
			Birdsall v. Saucier, 1992 WL 37731 (Conn. Super. Ct. 1992)
		PROBLEMS
			Problem 21.1. Fair and Reasonable Modification
			Problem 21.2. Accord and Satisfaction
MODULE VII. Remedies
	Chapter 22. Expectation Damages
		RULES
			A. Direct Expectation Damages
			B. Indirect Expectation Damages
			C. Punitive Damages
			D. Liquidated Damages and Penalties
			E. Reflections on Expectation Damages
		CASES
			Peevyhouse v. Garland Coal & Min. Co., 1962 OK 267 (1962)
			Hadley v. Baxendale, 9 Ex Ch 341 (1854)
		PROBLEMS
			Problem 22.1. Dynamo Products
			Problem 22.2. Francis the Plumber
			Problem 22.3. Gateway Packaging
			Problem 22.4. Yugo Motors ? Diminution in Value
			Problem 22.5. The Oysters
	Chapter 23. Alternative Money Damages
		A. Reliance Damages
		B. Punitive Damages
		C. Nominal Damages
		D. Liquidated Damages and Penalties
		E. Reflections on Alternative Money Damages
	Chapter 24. Equitable Remedies
		RULES
			A. Specific Performance
			B. Enforceability of Negative Covenants
			C. Restitution
			D. Reflections on Equitable Remedies
		CASES
			Bauer v. Sawyer, 8 Ill. 2d 351 (1956)
		PROBLEMS
			Problem 24.1. The Ink Factory
			Problem 24.2. Pesky Provisions
	Chapter 25. UCC Damages
		RULES
			A. Buyer?s Breaches
			B. Seller?s Breaches
			C. Incidential and Consequential UCC Damages
		CASES
			N. Am. Foreign Trading Corp. v. Direct Mail Specialist, 697 F. Supp. 163 (S.D.N.Y. 1988)
			Ramirez v. Autosport, 88 N.J. 277 (1982)
		PROBLEMS
			Problem 25.1. Retiring Road Commissioner
			Problem 25.2. Rash Delivery
			Problem 25.3. Cumene Repudiation