Contracts : a contemporary approach / by Christina L. Kunz and Carol L. Chomsky.
2010
KF801.A7 K864 2010 (Map It)
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Items
Details
Author
Title
Contracts : a contemporary approach / by Christina L. Kunz and Carol L. Chomsky.
Published
St. Paul, MN : West, [2010]
Copyright
©2010
Call Number
KF801.A7 K864 2010
ISBN
9780314189967
0314189963
0314189963
Description
xlvi, 1,145 pages : illustrations ; 27 cm.
System Control No.
(OCoLC)607977469
Bibliography, etc. Note
Includes bibliographical references and index.
Series
Record Appears in
Added Author
Table of Contents
Acknowledgments and Illustration Credits
v
Summary Table of Contents
ix
Detailed Table of Contents
xv
Table of Cases
xxix
Table of Restatement, UCC, CISG, and Unidroit Provisions
xxxix
ch. 1
Introduction
1
[§] 1
Overview
1
[§] 2
Sources of Contract Law and Authority
4
[§] 2.1
Judicial Opinions
5
2.2.
Restatements of the Law
5
2.3.
Statutory Law
7
[§] 2.4
International Commercial Law and the CISG
8
[§] 3
Features of this Book
9
ch. 2
Consideration
13
[§] 1
Introduction
14
[§] 2
Consideration as Benefit or Detriment
16
Appeal of Clark
16
Dougherty v. Salt
21
Food for Thought: Why is Consideration Required?
23
Hamer v. Sidway (I)
23
Homer v. Sidway (II)
29
[§] 3
Consideration as Bargain
33
Baehr v. Penn-O-Tex Oil Corporation
33
United States v. Meadors
37
Restatement (Second) [§][§] 71, 81
46
Tomczak v. Koochiching County Highway Department
48
Pennsy Supply, Inc. v. American Ash Recycling Corporation
52
FYI: Scope of Article 2 and the CISG
60
Problems
61
[§] 5
Refining the Requirement of Consideration
62
Batsakis v. Demotsis
62
Schnell v. Nell
66
Dyer v. National By-Products, Inc
69
Food for Thought: Disputed Claim as Consideration
75
Vassilkovska v. Woodfield Nissan, Inc
76
Practice Pointer: Illusory Promises and the Special Problem of Termination Clauses
84
Problems
86
[§] 6
Contract Modification and the Pre-Existing Duty Rule
87
Birdsall v. Saucier
89
Angel v. Murray
95
Restatement (Second) [§][§] 73, 89
102
UCC [§] 2-209
102
CISG Art. 29
103
FYI: Waiver
104
Problems
104
7.
Stretching the Limits of Consideration Doctrine
105
Lawrence v. Ingham County Health Department Family Planning/Pre-Natal Clinic
106
Food for Thought: Contractual Liability in Doctor-Patient Relationships
113
[§] 8
Review Exercise: Consideration
114
ch. 3
Alternatives to Consideration
117
[§] 1
Introduction
118
FYI: An Introduction to Contract Damages
118
[§] 2
Promissory Estoppel
120
Restatement [§] 90
123
Restatement (Second) [§] 90
123
Food for Thought: Unpublished Opinions
124
Conrad v. Fields
126
FYI: History of Equity
131
Hayes v. Plantations Steel Company
133
Ramone v. Lang
138
In re Field's Estate
148
Food for Thought: The Future of Promissory Estoppel
153
[§] 3
Promise for Benefit Already Received
154
Drake v. Bell
154
Webb v. McGowin
158
Restatement (Second) [§][§] 82, 83, 85, 86, 93
164
Problems
166
[§] 4
Liability for Restitution
169
Nursing Care Services, Inc. v. Dobos
171
In re Estate of Cleveland v. Gorden
174
Lucent Technologies, Inc., v. Mid-West Electronics, Inc
179
Brady v. State of Alaska
187
Problems
193
ch. 4
Manifestation of Mutual Assent
197
[§] 1
Introduction
199
[§] 2
Should Mutual Assent Be Judged Objectively or Subjectively?
201
Lucy v. Zehmer
201
Food for Thought: Two Ships Named "Peerless" and the Absence of Objective Meaning
210
[§] 3
Assent to Indefinite or Incomplete Agreements
211
Quake Construction v. American Airlines
212
FYI: The Pennzoil Case
221
Academy Chicago Publishers v. Cheever
222
B. Lewis Productions, Inc. v. Angelou
228
Food for Thought: Indefinite or Incomplete Agreements
239
Sun Printing & Publishing Ass'n v. Remington Paper & Power Co
242
Food for Thought: The Impact of Jurisprudential Philosophy
249
Problems
250
[§] 4
Mutual Assent by Offer and Acceptance
251
[§] 4.1
Defining "Offer"
252
[§] 4.1.1
Distinguishing Offers from Preliminary Negotiations
253
[§] 4.1.2
Advertisements and Rewards
257
Lefkowitz v. Great Minneapolis Surplus Store
257
Leonard v. Pepsico, Inc
261
[§] 4.1.3
Price Quotations
276
Nordyne, Inc. v. International Controls & Measurements Corp
276
[§] 4.1.4
The Bidding Process: RFPs, RFBs, and RFQs
281
Problems: Was an Offer Made?
284
[§] 4.2
Defining "Acceptance"
286
[§] 4.2.1
Distinguishing between Acceptance and Counter-offer
287
Restatement (Second) [§][§] 39, 50
287
CISG Art. 19; UNIDROIT Art. 2.1.11
288
Ardente v. Horan
289
Problems: Acceptance or Counter-offer?
292
[§] 4.2.2
The Mirror Image Rule
292
Rhode Island Dept. of Transp. v. Providence & Worcester R.R.
294
Problem: Applying the Mirror Image Rule
300
[§] 4.2.3
UCC Article 2 Abandons the Mirror Image Rule
301
[§] 4.2.3.1
Contract Formation under UCC [§] 2-207
303
UCC [§] 2-207. Additional Terms in Acceptance
303
Problem: Putting UCC [§] 2-207 into a Flowchart
306
C. Itoh & Co. v. The Jordan International Co. [Part 1]
307
Problems: Contract Formation under [§] 2-207
312
[§] 4.2.3.2
Contract Terms under UCC [§] 2-207
314
UCC [§] 2-207. Additional Terms in Acceptance
314
C. Itoh & Co. v. The Jordan International Co. [Part 2]
317
Problem: Refining the Flowchart of UCC [§] 2-207
320
Problems: Contracts and Their Terms under UCC [§] 2-207
320
CISG Art 19; UNIDROIT Arts. 2.1.11, 2.1.20, 2.1.22
322
[§] 4.2.3.3
Contract Confirmations under UCC [§] 2-207
323
UCC [§] 2-207. Additional Terms in Acceptance or Confirmation
323
Food for Thought: Which UCC Sections Should be Applied by Analogy?
324
[§] 4.2.4
Which Manner of Acceptance is Effective?
325
UCC [§] 2-206
326
Restatement (Second) [§] 30
326
CISG Art. 18; UNIDROIT Arts. 2.1, 2.1.6
326
[§] 4.2.4.1
Acceptance by Promise or by Performance: Bilateral and Unilateral Contracts
327
Restatement (Second) [§] 32, 62
329
Restatement (Second) [§] 45
330
[§] 4.2.4.2
Acceptance by Conduct or by Inaction
331
Restatement (Second) [§] 69
331
CISG Art. 18, UNIDROIT Art. 2.1.6
332
Houston Dairy, Inc. v. John Hancock Mutual Life Ins. Co
333
FYI: Unsolicited Merchandise and Negative Options
337
Problems: Acceptance by Silence or Inaction
339
[§] 4.2.4.3
Electronic Offer and Acceptance
340
Problems: Acceptance in Electronic Agreements
341
[§] 4.2.5
Time of Effectiveness of Acceptance: The Mailbox Rule
342
Restatement (Second) [§][§] 63, 66
342
UETA [§] 15
343
Problems: The Mailbox Rule
344
Food for Thought: Should Electronic Communications be Governed by the Mailbox Rule?
346
[§] 4.2.6
Must the Offeree Notify the Offeror of Acceptance?
347
UCC [§] 2-206
348
Problem: Notification of Acceptance
348
[§] 4.3
Terminating the Power of Acceptance
349
Restatement (Second) [§][§] 35, 36
349
[§] 4.3.1
Death or Incapacity of Offeror or Offeree
350
Problem: Death of Offeror
350
[§] 4.3.2
Lapse of Offer
351
Restatement (Second) [§] 41
351
CISG Art. 18, 21; UNIDROIT Arts. 2.1.7, 2.1.8, 2.1.9
351
[§] 4.3.3
Rejection by the Offeree
352
Restatement (Second) [§][§] 38, 39
353
[§] 4.3.4
Revocation by the Offeror
354
Restatement (Second) [§][§] 42, 43, 46
354
Problems: Terminating the Power of Acceptance
355
[§] 4.3.4.1
Which Offers are Irrevocable?
356
Pavel Enterprises, Inc. v. A.S. Johnson Co
358
Practice Pointer: Bid Bonds
372
Food for Thought: Making Bids Irrevocable
373
Problems: Irrevocable Offers
373
[§] 5
Review Exercise: Manifestation of Mutual Assent
374
ch. 5
Defenses to Contract Enforcement
377
[§] 1
Introduction
379
2.
Defenses Related to Defects in Mutual Assent
380
[§] 2.1
Mistake
381
2.1.1.
Mutual Mistake
381
Wood v. Boynton
381
Lenawee Cnty Bd. of Health v. Messerly
386
[§] 2.1.2
Unilateral Mistake
395
Wil-Fred's Inc. v. Metropolitan Sanitary District
395
Restatement (Second) [§][§] 153, 154
405
Problems
406
[§] 2.2
Misrepresentation
407
UNIDROIT [§] 3.8
408
Barrer v. Women's National Bank
409
Restatement (Second) [§] 162
421
Kannavos v. Annino
422
FYI: Unfair or Deceptive Acts or Practices (UDAP)
428
Problems
429
[§] 2.3
Duress and Undue Influence
430
[§] 2.3.1
Duress
430
Restatement (Second) [§][§] 174, 175, 176
431
UNIDROIT Art. 3.9
432
Holler v. Holler
432
Food for Thought: A Distinguishable Case?
437
Totem Marine Tug & Barge, Inc. v. Alyeska Pipeline Service Co.
438
Food for Thought: Expansion of the Duress Defense?
447
[§] 2.3.2
Undue Influence
448
Restatement (Second) [§] 177
448
Odorizzi v. Bloomfield School District
448
[§] 2.4
Unconscionability
457
Williams v. Walker-Thomas Furniture Co
458
[§] 2.4.1
Codincations of the Unconscionability Defense
466
UCC [§] 2-302
468
Restatement (Second) [§] 208
468
UNIDROIT Art. 3.10
469
[§] 2.4.2
Substantive and Procedural Unconscionability
470
Sitogum Holdings, Inc. v. Ropes
470
American Software, Inc. v. Ali
480
In re RealNetworks, Inc., Privacy Litigation
486
Food for Thought: Agreements to Arbitrate and Varying Unconscionability Standards
490
Problem
493
Food for Thought: Regulatory Alternatives to Unconscionability
494
[§] 3
Defenses Based on Lack of Capacity to Contract
496
Restatement (Second) [§] 12
497
[§] 3.1
Infancy Resulting in Incapacity
497
Restatement (Second) [§] 14
497
Webster Street Partnership, Ltd. v. Sheridan
499
Halbman v. Lemke
506
[§] 3.2
Mental Illness or Defect
512
Restatement (Second) [§] 15
514
Ortelere v. Teachers' Retirement Board
515
[§] 3.3
Intoxication
525
Restatement (Second) [§] 16
525
[§] 4
Violation of Public Policy
525
Restatement (Second) [§] 178
527
Tunkl v. Regents of the University of California
528
Johnson v. Calvert
535
FYI: Surrogacy Contracts in Flux
553
ch. 6
Statute of Frauds
555
[§] 1
Introduction
556
[§] 2
Manner and Effect of Invoking the Statute of Frauds
560
[§] 3
Is the Contract within the Class of Contracts Covered by the Statute of Frauds?
561
Restatement (Second) [§] 110
562
UCC [§] 2-201
562
Think About It: Statute of Frauds One-Year Provision
564
[§] 4
Is there a Writing that Satisfies the Statute of Frauds?
565
[§] 4.1
General Requirements for the Writing
565
Problem: What Kind of Writing is Required? (I)
565
Restatement (Second) [§][§] 131, 133, 134, 136, 137
565
UCC [§][§] 2-201; 1-201(37), (43)
567
Problem: What Kind of Writing is Required? (II)
568
[§] 4.2
Writing or Writings?
569
Owen v. Hendricks
569
Crabtree v. Elizabeth Arden Sales Corporation
573
[§] 4.3
The Statute of Frauds in Electronic Commerce
578
[§] 5
Does the Agreement Fall Within an Exception to the Writing Requirement?
580
[§] 5.1
Contracts for the Sale of Goods
580
UCC [§] 2-201
581
[§] 5.2
Part Performance Exception
582
[§] 5.3
Equitable and Promissory Estoppel
584
Restatement (Second) [§] 139
585
Problems
586
ch. 7
Content and Meaning of the Contract
589
[§] 1
Introduction
591
[§] 2
Interpreting Express Contract Terms
591
[§] 2.1
A Case Study in Interpretation
592
Frigaliment Importing Co. v. B.N.S. International Sales Corp
593
UCC [§] 1-303
599
[§] 2.2
Canons of Construction
600
Klapp v. United Insurance Group Agency
604
[§] 2.3
"Four Corners" vs. Context Approach
615
C. & A. Construction Co. v. Benning Construction Co
616
Pacific Gas & Electric Co. v. G.W. Thomas Drayage & Rigging Co
623
[§] 2.4
Stretching the Limits of Interpretation: Contracts and Commercial Context under the UCC
630
Nanakuli Paving & Rock Co. v. Shell Oil Co
631
[§] 3
The Parol Evidence Rule
639
[§] 3.1
The Effect of the Parol Evidence Rule
640
[§] 3.2
"Exceptions" to the Parol Evidence Rule: When the Parol Evidence Rule Does Not Apply
642
Practice Pointer: Is Course of Performance Evidence Always Admissible?
645
[§] 3.2.1
Collateral Agreements
645
Lee v. Joseph E. Seagram & Sons, Inc
646
[§] 3.3
Is the Written Contract Partially or Completely Integrated?
652
Middletown Concrete Products, Inc. v. Black Clawson Co
653
Sierra Diesel Injection Service, Inc. v. Burroughs Corp., Inc
662
Problems
666
[§] 4
Implied Contract Terms and Provisions
670
[§] 4.1
Terms Implied from the Circumstances
670
Fisher v. Congregation B'nai Yitzhok
672
First National Bank of Lawrence v. Methodist Home for the Aged
676
Wood v. Lacy, Lady Duff-Gordon
682
[§] 4.2
Duty of Good Faith
684
[§] 4.2.1
Application of the Requirement of Good Faith in Performance or Enforcement
686
Market Street Associates Limited Partnership v. Frey
687
[§] 4.2.2
Implied Duty of Good Faith in Requirements and Output Contracts
698
Feld v. Henry S. Levy & Sons, Inc
699
Eastern Air Lines v. Gulf Oil Corporation
702
FYI: Good Faith and "Unreasonably Disproportionate" Quantities
708
[§] 4.2.3
Implied Duty of Good Faith in Exercising Termination Rights
709
Corenswet, Inc. v. Amana Refrigeration, Inc
710
Bak-A-Lum Corporation of America v. Alcoa Building Products, Inc
718
Baker v. Ratzlaff
721
[§] 4.3
Duty of Best Efforts
725
UCC [§] 2-306
726
Bloor v. Falstaff Brewing Corporation
727
[§] 5
Express Conditions
733
[§] 5.1
Identifying and Enforcing Express Conditions
735
Morrison v. Bare
735
Internatio-Rotterdam, Inc. v. River Brand Rice Mills, Inc
742
Peacock Construction Co. v. Modern Air Conditioning, Inc
745
[§] 5.2
Conditions of Satisfaction
748
Hutton v. Monograms Plus, Inc
749
Morin Building Products Company, Inc. v. Baystone Construction, Inc
759
[§] 5.3
Waiver and Excuse of Conditions
763
Burger King Corp. v. Family Dining, Inc
764
ch. 8
Performance, Breach, and Excuse
777
[§] 1
Introduction
779
[§] 2
Categories of Implied Conditions
779
Kingston v. Preston
781
Problems
783
[§] 3
Performance and Breach under the Common Law
784
[§] 3.1
Implied Conditions and Performance Responsibilities
784
Jacob & Youngs v. Kent
785
[§] 3.2
Substantial Performance or Material Breach?
793
Roberts Contracting Co. v. Valentine-Wooten Road Public Facility Bd
794
Khiterer v. Bell
801
Problems
806
[§] 3.3
Partial or Total Breach?
807
Restatement (Second) [§] 242
808
Sackett v. Spindler
809
[§] 3.4
The Complexities of Adjusting Performance after Breach
815
K & G Construction Co. v. Harris
816
Take Note: Divisible and Severable Contracts
823
[§] 4
Repudiation
826
[§] 4.1
Defining Repudiation (Renunciation)
826
McCloskey & Co. v. Minweld Steel Co
827
[§] 4.2
Anticipatory Repudiation
832
Hochster v. De la Tour
833
UCC [§][§] 2-610, 2-611
837
[§] 4.3
Reasonable Insecurity about Future Performance
837
UCC [§] 2-609
839
Restatement (Second) [§] 251
840
CISG Arts. 71, 72
840
FYI: "Hedge-to-Arrive" Contracts
841
Land O'Lakes, Inc. v. Hanig
844
Problems
851
[§] 5
Performance and Breach under UCC Article 2
852
UCC [§] 2-601
852
UCC [§] 2-608
854
UCC [§] 2-508
855
UCC [§][§] 2-606, 2-607
856
Ramirez v. Autosport
858
Problem
864
[§] 6
Excuse Defenses: Impossibility, Impracticability, and Frustration of Purpose
864
[§] 6.1
Historical Background of the Excuse Defense
865
Taylor v. Caldwell
866
Unke v. Thorpe
869
Krell v. Henry
874
Adbar, L.C. v. New Beginnings C-Star
880
[§] 6.2
Impossibility Broadens into Impracticability
883
Transatlantic Financing Corp. v. United States
884
Northern Ind. Public Service Co. v. Carbon County Coal Co
889
City of Vernon v. City of Los Angeles
896
[§] 6.3
Force Majeure Clauses
905
[§] 6.4
When do Courts Grant Excuse?
906
[§] 6.5
Codifications of the Excuse Defense
908
UCC [§][§] 2-615, 2-616
909
Restatement (Second) [§][§] 261, 265, 266
910
UNIDROIT Art. 7.1.7
910
Problem
911
ch. 9
Remedies
915
[§] 1. Overview
917
[§] 2
Remedies at Law (Damages)
918
[§] 2.1
Expectation Damages
920
[§] 2.1.1
Categories of Expectation Damages
921
[§] 2.1.2
Thinking Sensibly About Expectation Damages
922
UNIDROIT Art. 7.4.2
923
Problems: Determining Expectation Damages
923
[§] 2.1.3
Measuring Typical Direct Damages
925
CISG Art. 75; UNIDROIT Art. 7.4.5
927
[§] 2.1.4
Special Problems in Measuring Direct Damages
928
[§] 2.1.4.1
Damages When There is no Market
928
Sackett v. Spindler
928
[§] 2.1.4.2
Damages Resulting from Anticipatory Repudiation
932
Cosden Oil & Chemical Co. v. Karl O. Helm Aktiengesellschaft
933
[§] 2.1.4.3
Owner's Cost to Complete versus Diminution in Value
939
Jacob & Youngs v. Kent
940
Khiterer v. Bell
942
Lyon v. Belosky Construction, Inc
943
Problem: Damages for Incomplete Performance
946
Peevyhouse v. Garland Coal & Mining Co
947
[§] 2.1.4.4
Damages for "Lost Profits" and "Lost Volume"
956
Neri v. Retail Marine Corp
957
Vitex Mfg. Corp. v. Caribtex Corp
961
[§] 2.1.5
Indirect Expectation Damages
966
[§] 2.1.5.1
Incidental Damages
967
UCC [§][§] 2-710, 2-715(1)
967
Problem: Incidental Damages
967
[§] 2.1.5.2
Consequential Damages
968
Hadley v. Baxendale
969
Redgrave v. Boston Symphony Orchestra, Inc
973
Kenford Co. v. County of Erie
985
Think About it: Consequential Damages for New Businesses
988
UCC [§] 2-715(2)
990
CISG Art. 74; UNIDROIT Art. 7.4.4
991
[§] 2.1.6
Mitigation of Damages (Avoidable Damages)
991
CISG Art. 77; UNIDROIT Art 7.4.8
992
Sackett v. Spindler
993
Parker v. Twentieth Century-Fox Film Corp
995
[§] 2.2
Reliance Damages
1003
Security Stove & Mfg. Co. v. American Ry. Express Co
1005
Goodman v. Dicker
1010
[§] 2.3
Restitution Damages
1012
[§] 2.3.1
Damages for the Party Who Materially Breaches
1013
Lancellotti v. Thomas
1014
Think About it: Measuring Restitution Damages
1021
[§] 2.3.2
Damages for the Aggrieved Party in a "Losing" Contract
1022
United States v. Algernon Blair, Inc
1022
[§] 2.4
Agreed and Liquidated Damages
1025
UCC [§] 2-718(1)
1026
Restatement (Second) [§] 356
1026
Wassenaar v. Panos
1027
Food for Thought: The Theory of Efficient Breach
1037
[§] 2.5
Punitive Damages
1039
Romero v. Mervyn's
1040
Boise Dodge, Inc. v. Clark
1045
[§] 3
Equitable Remedies: The "Extraordinary Remedies"
1050
[§] 3.1
Specific Performance
1050
Ammerman v. City Stores Co
1051
Laclede Gas Co. v. Amoco Oil Co
1055
Think About it: CISG Provisions on Specific Performance
1060
CISG Arts. 42 & 62
1061
[§] 3.2
Prohibitory Injunction
1061
American Broadcasting Companies v. Wolf
1062
[§] 3.3
Specific Restitution
1070
ch. 10
Third-Party Rights and Duties
1071
[§] 1
Introduction
1072
[§] 2
Assignment of Rights and Delegation of Duties
1072
[§] 2.1
Common Law Approach
1077
British Waggon Co. v. Lea & Co
1078
Crane Ice Cream v. Terminal Freezing & Heating Co
1082
[§] 2.2
UCC and Restatement Provisions
1089
UCC [§] 2-210
1090
Restatement (Second) [§][§] 317, 318, 322
1090
[§] 2.3
A Contemporary Case
1092
Sally Beauty Co. v. Nexxus Products Co
1092
[§] 3
Third-Party Beneficiaries
1104
[§] 3.1
Common Law Roots of the Doctrine
1107
Lawrence v. Fox
1107
Seaver v. Ransom
1113
[§] 3.2
Third-Party Beneficiaries in the Restatements
1117
Restatement [§] 133
1117
Restatement (Second) [§][§] 302, 304, 315
1118
UNIDROIT Arts. 5.2.1, 5.2.2
1119
[§] 3.3
Contemporary Cases
1119
Cretex Companies v. Construction Leaders, Inc
1120
Martinez v. Socoma Companies, Inc
1128
Restatement (Second) [§] 313
1136
Index
1137