Contracts Notes
Contracts Notes
9/7/17
William v. Walker Thomas cross collateral portion struck out, struck out offending clause
If someone else (landlord) has not yet signed contract, you can change things that you want.
In Europe if someone breaks promised act in contract, they have to do that act
In USA if someone breaks promised act, they can pay back equivalent in cash
Expectancy plaintiff ex post whole (offset expected costs) (calculated from time of contract),
wouldnt get back doctors fee because you would have paid this even if the surgery was successful.
Would recover lost earnings with respect to the promised nose. (prior nose and
promised nose)
Reliance plaintiff ex ante whole (calculated from time of breach) putting the plaintiff back in
the position they were in prior to bargain.
Injunctions specific performance and negative if you want something specific (sentimental
item)
Punitive damages if there has been tort like (malicious) behavior. Threatened but rarely
awarded in contract arguments. Also called exemplary damages.
Mitigations
In medicine expectancy damages may not be appropriate because outcome is always uncertain. Usually
awards reliance damages.
Cant get pain and suffering from breach of a commercial contract (unless you suffer physical harm)
but cant get money because you were sad that you didnt buy a cool car
Images both threatening to law and treated with great credulity
Can threaten economic and reputational consequences for breach of contract then legal consequences.
Taking to court is usually a last step.
Hadley v. Baxendale - Lost profits are a special loss, and would not be recovered until specified in the
contract
Not concerned with fault in contract, only concerned with promises and breaches
Internalization
You dont have to be at fault to breach a contract, the promise just has to be broken
If a product is known to be sold upon arrival, there is a forseeable probability of a fluctuation in price,
but dont know which way
Two stage test: what occurs naturally from the breach of contract?
Fired employee may have pecuniary loss, but cannot get recovery for emotional distress
Remoteness of damage
Emotional loss
9/12/17
A promise should be formulated in the future tense I will, a commitment to not changing your point of
view
Consideration provide good evidence of agreement, make sure both parties thought carefully about
entering into the contract, seriousness, channeling function allows parties to predict when their
promises are legally enforceable.
First req. in common law is a threshold requirement: promise not enforceable if not responded to.
Contract contraho- drawing together, quid pro quo, exchange of promises, mutual, reciprocal
Something that is legally recognized of value has to pass between the two parties
No requirement of consideration in civil law systems, will enforce a gratuitous promise as long as they
have a reason
Kirksey v. Kirksey
Mean assignment
give can mean legally at face value that it is a gratuity (social promise)
Hamer v Sidway
Reward example: lost pet $100 reward, people dont get paid anything just for looking
He was underage when they agreed, contract doesnt actually happen until he was 21
He may be benefitted by giving up rights, but is a legal detriment because he loses those rights
If you request it, because of your request the court deems it beneficial to you, even if a reasonable
person might not think so (how can you reconcile this with Edwin Farnham Greene?)
Will is not a contract, its a declaration from the testator, gratuity, entirely donative
Custos bonos mores against good morals. Court can choose to enforce based on the social norms.
Bad man theory theory that prediction is the best form of advice
Promissory estoppel equitable device invented 1890s US law. A promise that the promisor should
reasonably expect the promisee to rely on, and they do rely on to their detriment, then enforceable to
the extent necessary to ensure justice.
This is how they could have enforced pension even without the ban on competitive
employment condition
If not stipulated, it is implied that the item is suitable for intended use
Implied promise on both sides, implied contract because there is a commercial contract
Selling something that becomes worthless is not grounds for termination of a contract
Parol evidence rule the presumption that the writing is the entire evidence, not what was said
Unjust enrichment
Pinnels case 1602 monetary debt (special case) cannot be satisfied by a lesser sum than promised on
the day due, unless you vary the circumstances (pay a day early, give a horse as well, etc)
Modification is justified as long as it promises to do the same thing because of different circumstances
Stilk v Myrick Admiralty is very similar to realty if you charter a boat it is a lease not a license
Contract to crew a ship is a promise to do everything that the captain asks you to do
Policy argument if crew demanded more wages when there was a storm, captain would be
forced to agree, but if they dont crew the ship will sink
Hartley v Ponsonby circumstance changes so much that the new contract is enforceable, even though
against the traditional admiralty law
Otiose
Lynyrd Skynrd cant just write under protest when signing to indicate duress
Anaphoric designator
Hold harmless you will indemnify other party, pay for all the other partys costs
Modifications are volitional you dont have to agree
Maher could have tried to get relief through commercial impracticability (cant possibly fulfill the
contract due to unforeseen change of circumstances)