Preface |
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Casebook Correlation Chart |
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Capsule Summary |
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Chapter 1 |
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I. |
MEANING OF “CONTRACT” |
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A. |
Definition |
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II. |
VOID, VOIDABLE AND UNENFORCEABLE CONTRACTS |
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III. |
ECONOMIC ANALYSIS OF CONTRACT LAW |
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IV. |
SOURCES OF CONTRACT LAW |
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Chapter 2 |
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I. |
INTENT TO CONTRACT |
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A. |
Mutual assent |
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B. |
Objective theory of contracts |
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C. |
Intent to create legal relations |
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D. |
Intent to memorialize agreement in writing |
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II. |
OFFER AND ACCEPTANCE GENERALLY |
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A. |
Requirement of offer and acceptance |
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B. |
Restatement definition |
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C. |
Promise contained in offer |
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D. |
Offer creates power of acceptance |
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1. |
Options |
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III. |
VALIDITY OF PARTICULAR KINDS OF OFFERS |
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A. |
Offer made in jest |
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B. |
Offer distinguished from expression of opinion |
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C. |
Preliminary negotiations distinguished from offers |
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D. |
Price quotations distinguished from offers |
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E. |
Advertisements as offers |
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F. |
Offers at auctions |
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G. |
Invitations to bid |
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H. |
Seller’s response to inquiry |
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I. |
Indefinite offers |
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J. |
Offers proposing a series of contracts |
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Quiz Yourself on |
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IV. |
THE ACCEPTANCE |
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A. |
Acceptance defined |
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B. |
Who may accept the offer |
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C. |
Must be in response to an offer |
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D. |
Offeree usually required to know of the offer |
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E. |
Method of acceptance |
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1. |
Can suspend mailbox rule |
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2. |
Mode of acceptance where not specified in offer |
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3. |
Acceptance of unilateral contract |
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4. |
Acceptance of bilateral contract |
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5. |
Where offer invites either promise or performance |
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6. |
Acceptance by silence |
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7. |
Notice of acceptance of unilateral contract |
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Quiz Yourself on |
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V. |
ACCEPTANCE VARYING FROM OFFER |
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A. |
Problem generally |
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B. |
Common-law view |
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1. |
Injustice |
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C. |
Liberal UCC view |
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1. |
“Battle of the forms” |
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2. |
Role of § 2-207 |
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3. |
Text of § 2-207 |
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4. |
Summary |
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D. |
Detailed discussion |
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E. |
Acceptance expressly conditional on assent to changes |
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F. |
Additional term in acceptance |
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1. |
Contract formed |
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2. |
Proposal for addition to the contract |
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3. |
At least one party not merchant |
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4. |
Both parties merchants |
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5. |
Recap of how additional terms are handled |
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6. |
Additional term in first document but not second |
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G. |
Different (conflicting) terms in documents |
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H. |
Response diverges too much to be acceptance |
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I. |
Contract by parties’ conduct |
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J. |
Confirmation of oral agreement |
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K. |
“Terms to follow” contracts (a/k/a “rolling” contracts) |
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L. |
Negotiations not involving standardized forms |
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M. |
Electronic commerce, and its effect on contract formation |
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N. |
Modern view of divergences in non-UCC cases |
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Quiz Yourself on |
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VI. |
DURATION OF THE POWER OF ACCEPTANCE |
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A. |
Determining whether the acceptance is timely |
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B. |
“Continuing offers” implied |
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C. |
Four ways of terminating offer |
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D. |
Offer terminated by offeree’s rejection |
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E. |
Counter-offer terminates power to accept |
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F. |
Lapse of time |
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G. |
Revocation |
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1. |
Effective upon receipt |
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2. |
Lost revocation |
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3. |
What constitutes receipt of revocation |
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4. |
Indirect communication of revocation |
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5. |
Revocation of general offer |
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H. |
Death or incapacity of offeror or offeree |
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I. |
Supervening illegality |
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J. |
Irrevocable offers |
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1. |
Exceptions |
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2. |
The standard option contract |
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3. |
“Firm offers” under the UCC |
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4. |
Part performance or detrimental reliance |
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K. |
Temporary irrevocability caused by part performance or detrimental reliance |
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VII. |
WHEN ACCEPTANCE BECOMES EFFECTIVE |
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A. |
Introduction |
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B. |
General “mailbox” rule |
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C. |
Misdirection of acceptance |
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D. |
Acceptance lost in transmission |
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E. |
Where offeree sends both acceptance and rejection |
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F. |
Acceptance of option contracts |
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G. |
Effective date of revocation of offer |
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Quiz Yourself on |
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VIII. |
INDEFINITENESS |
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A. |
Problem of indefiniteness generally |
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B. |
Modern view more liberal |
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C. |
Necessary terms |
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1. |
Court may supply missing term |
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2. |
Implication of reasonable terms, generally |
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3. |
Implied obligation of good faith |
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4. |
Trade usage or other external evidence |
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5. |
Need for an intent to contract |
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6. |
Agreement to agree |
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7. |
Contracts where terms are left to one party’s specifications |
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8. |
Indefiniteness cured by part performance |
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IX. |
MISUNDERSTANDING |
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Quiz Yourself on |
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Exam Tips on |
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Chapter 3 |
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I. |
INTRODUCTION |
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A. |
Consideration as a requirement for a contract |
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B. |
Purpose of consideration doctrine |
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C. |
Definition |
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D. |
Two kinds of problems |
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II. |
THE BARGAIN ELEMENT—GIFT PROMISES |
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A. |
The bargain element generally |
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1. |
“Bargain” defined |
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B. |
Ordinary gift cases |
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1. |
Bargains vs. conditional gifts |
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2. |
Test for distinguishing bargains from pre-conditions |
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3. |
Non-economic benefits |
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4. |
Business context does not negate donative intent |
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5. |
Absence of overt bargaining not fatal |
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C. |
Sham and nominal consideration |
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D. |
Importance of whether recited consideration was actually paid |
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E. |
Promisee must be aware of promise |
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F. |
Consideration doctrine not applicable to executed gifts |
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III. |
THE BARGAIN ELEMENT—“PAST CONSIDERATION” |
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A. |
“Past consideration” not sufficient |
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B. |
Pre-existing debt |
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C. |
Promise to pay for past services received |
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Quiz Yourself on |
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IV. |
THE “DETRIMENT” ELEMENT GENERALLY |
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A. |
The “detriment” aspect of consideration |
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B. |
“Detriment” idea summarized |
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C. |
Consideration may be either promise or performance |
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D. |
Where issue arises |
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E. |
Court will not inquire into “adequacy” of the detriment |
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1. |
Minor effort or other thing of non-monetary value |
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2. |
Equity courts have different rule |
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3. |
Inadequacy of consideration as evidence of fraud, duress, unconscionability, etc. |
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V. |
THE PRE-EXISTING DUTY RULE |
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A. |
The pre-existing duty rule generally |
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B. |
General pre-existing duty rule in two party cases |
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1. |
Promise to modify |
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2. |
Deterring hold-up behavior |
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3. |
Construction contracts |
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4. |
Restatement view |
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5. |
The “unforeseen circumstances” exception |
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6. |
Promissory estoppel |
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7. |
Where extra duties assumed |
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8. |
Duty owed to third person rather than to promisor |
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9. |
Some states have rejected rule |
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10. |
Rewards and bonuses |
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C. |
Agreements to accept part payment of debt in satisfaction of whole |
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D. |
Extension agreements |
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E. |
Settlement of other kinds of suits |
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F. |
The “three party” pre-existing duty cases |
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Quiz Yourself on |
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VI. |
MUTUALITY OF CONSIDERATION |
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A. |
Requirement that each side furnish consideration |
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B. |
Consideration in bilateral contracts |
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C. |
“Mutuality of obligation” |
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VII. |
ILLUSORY, ALTERNATIVE, AND IMPLIED PROMISES |
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A. |
Introduction |
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B. |
Illusory promises |
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1. |
Reservation of right to change mind |
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C. |
Alternative promises |
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D. |
Right to terminate agreement |
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E. |
Other kinds of implied promises |
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VIII. |
REQUIREMENTS AND OUTPUT CONTRACTS |
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A. |
Requirements and output contracts |
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B. |
UCC approach |
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C. |
Requirements and output contracts distinguished from continuing offers |
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Quiz Yourself on |
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IX. |
MISCELLANEOUS CONSIDERATION PROBLEMS |
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A. |
Conditional promises |
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1. |
Conditions outside of the promisor’s control |
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2. |
Where condition is within partial control of the promisor |
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3. |
Promisee’s discretion |
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B. |
Voidable and unenforceable promises |
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C. |
Forging a good unilateral contract out of a bad bilateral one |
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1. |
Non-competition clause |
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Quiz Yourself on |
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Exam Tips on |
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Chapter 4 |
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I. |
INTRODUCTION |
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II. |
PROMISES TO PAY PAST DEBTS |
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A. |
Promises to pay past debts that are no longer legally enforceable |
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B. |
“Moral consideration” |
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C. |
Scope of promisor’s duty |
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III. |
PROMISE TO PAY FOR BENEFITS RECEIVED |
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A. |
Promise to pay for benefits received generally |
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1. |
Where services were requested, and rendered with an expectation of payment |
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2. |
Benefits previously received but not requested |
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Quiz Yourself on |
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IV. |
OTHER CONTRACTS BINDING WITHOUT CONSIDERATION |
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A. |
Promise to perform a voidable duty |
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B. |
Modification of contracts |
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1. |
Contracts containing a “no oral modification” clause |
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2. |
Good faith and unconscionability in modifications |
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C. |
Option contracts |
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1. |
Restatement |
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2. |
Offers which induce reliance |
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3. |
Firm offers under the UCC |
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D. |
Guaranties |
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E. |
Contracts under seal |
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Quiz Yourself on |
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V. |
PROMISSORY ESTOPPEL |
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A. |
Introduction |
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1. |
Other applications |
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B. |
Restatement definition |
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C. |
Unbargained-for reliance |
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D. |
Promises to make gifts |
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1. |
Intra-family promises |
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2. |
Oral promises to convey land |
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E. |
Charitable subscriptions |
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F. |
Gratuitous bailments and agencies |
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G. |
Promises to pay pensions |
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H. |
Offers by sub-contractors |
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I. |
Promise to perform business service |
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1. |
Promise to obtain insurance |
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2. |
Promise to make a loan |
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J. |
At-will jobs and other at-will relationships |
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K. |
Duty to bargain in good faith |
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L. |
Theories of recovery |
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M. |
Promissory estoppel under the UCC |
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Quiz Yourself on |
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Exam Tips on |
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Chapter 5 |
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I. |
NATURE OF MISTAKE GENERALLY |
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II. |
GENERAL RULE ON MISTAKE |
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III. |
MUTUAL MISTAKE |
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A. |
Restatement position |
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B. |
Restatement’s three requirements |
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C. |
Meaning of “basic assumption” |
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D. |
Material effect on agreed exchange |
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E. |
Allocation of risk |
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1. |
Agreement of the parties |
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2. |
Conscious ignorance |
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3. |
Allocation by court |
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F. |
Relation to breach of warranty |
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G. |
Misunderstanding |
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Quiz Yourself on |
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IV. |
UNILATERAL MISTAKE |
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A. |
The problem generally |
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B. |
Traditional rule |
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C. |
Modern view |
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Quiz Yourself on |
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V. |
DEFENSES AND REMEDIES |
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A. |
Negligence usually not a defense |
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1. |
Failure to act in good faith |
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2. |
Failure to read writing |
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B. |
Remedies |
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1. |
Avoidance |
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2. |
Reliance damages |
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3. |
Adjustment of contract as substitute for avoidance |
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VI. |
REFORMATION AS REMEDY FOR ERROR IN EXPRESSION |
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Quiz Yourself on |
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Exam Tips on |
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Chapter 6 |
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I. |
THE PAROL EVIDENCE RULE GENERALLY |
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A. |
How the rule applies |
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II. |
TOTAL AND PARTIAL INTEGRATION |
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A. |
The concept of “integration” |
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B. |
“Partial” vs. “total” integrations |
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C. |
Statement of the parol evidence rule |
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D. |
Contemporaneous and subsequent expressions |
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E. |
The UCC’s parol evidence rule |
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Quiz Yourself on |
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III. |
THE ROLES OF THE JUDGE AND JURY |
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A. |
Preliminary determinations made by judge |
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B. |
Conflicting views on how judges decide |
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C. |
Deciding whether a writing is an integration, and whether particular terms contradict or supplement it |
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Quiz Yourself on |
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IV. |
SITUATIONS IN WHICH THE PAROL EVIDENCE RULE DOES NOT APPLY |
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A. |
Rule does not bar a showing of fraud, mistake or other voidability |
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B. |
Existence of a condition |
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C. |
Collateral agreement supported by separate consideration |
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D. |
Subsequent transactions |
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E. |
Interpretation |
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Quiz Yourself on |
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V. |
INTERPRETATION |
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A. |
Interpretation generally |
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B. |
Maxims of interpretation |
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1. |
Primary purpose rule |
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2. |
All terms made reasonable, lawful and effective |
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3. |
Construction against the draftsman |
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4. |
Negotiated terms control standard terms |
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C. |
One party knows or should know of the other’s meaning |
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VI. |
TRADE USAGE, COURSE OF PERFORMANCE, AND COURSE OF DEALING |
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A. |
Common-law use of “custom” |
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B. |
Modern tendency exemplified by UCC |
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C. |
Effect on the parol evidence rule |
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D. |
Allowable to add or subtract from the agreement |
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E. |
Priorities |
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VII. |
OMITTED TERMS SUPPLIED BY COURT |
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A. |
Court may supply term |
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B. |
Restatement rule |
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Quiz Yourself on |
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Exam Tips on |
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Chapter 7 |
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I. |
INTRODUCTION |
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II. |
CLASSIFICATION OF CONDITIONS |
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A. |
Precedent/Subsequent distinction |
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B. |
Express and constructive conditions |
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III. |
DISTINCTION BETWEEN CONDITIONS AND PROMISES |
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A. |
Importance of distinction |
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Quiz Yourself on |
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IV. |
EXPRESS CONDITIONS |
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A. |
Strict compliance |
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1. |
Avoidance of forfeiture |
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2. |
Interpreted in light of parties’ intentions |
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B. |
Satisfaction of a party |
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C. |
Satisfaction of a third person |
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Quiz Yourself on |
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V. |
CONSTRUCTIVE CONDITIONS |
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A. |
Use of constructive conditions in bilateral contracts |
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B. |
Order of performance |
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1. |
Periodic payments or other alternating performance |
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2. |
Where no order of performance agreed upon |
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C. |
Independent vs. dependent promises |
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D. |
Divisible contracts |
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Quiz Yourself on |
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VI. |
SUBSTANTIAL PERFORMANCE |
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A. |
Doctrine of substantial performance |
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1. |
Relation to material breach |
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2. |
Consequences of non-material breach |
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B. |
Suspension followed by discharge |
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C. |
Factors determining whether a breach is material |
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D. |
Material breach in contracts for the sale of goods |
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Quiz Yourself on |
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VII. |
EXCUSE OF CONDITIONS |
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A. |
Introduction |
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B. |
Hindrance or wrongful prevention |
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C. |
Intent to forego the benefit of the condition (“waiver”) |
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Quiz Yourself on |
||||||||
VIII. |
REPUDIATION AND PROSPECTIVE INABILITY TO PERFORM AS FAILURES OF CONSTRUCTIVE CONDITIONS |
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A. |
General effect of prospective breach |
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B. |
Insolvency or financial inability |
|||||||
C. |
Right to adequate assurance of performance |
|||||||
Quiz Yourself on |
||||||||
Exam Tips on |
||||||||
Chapter 8 |
||||||||
I. |
TOTAL AND PARTIAL BREACH |
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II. |
ANTICIPATORY REPUDIATION GENERALLY |
|||||||
A. |
A recap |
|||||||
1. |
Hochster v. De La Tour |
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B. |
Hochster accepted |
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C. |
What constitutes a repudiation |
|||||||
1. |
Traditional view |
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2. |
Modern view |
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3. |
Promisor’s statement |
|||||||
4. |
Voluntary acts rendering performance impossible |
|||||||
5. |
Prospective inability to perform |
|||||||
6. |
Insolvency |
|||||||
7. |
Threatened breach must be material |
|||||||
Quiz Yourself on |
||||||||
III. |
OTHER ASPECTS OF REPUDIATION |
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A. |
Repudiation after repudiator’s performance has fallen due |
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1. |
Same application |
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B. |
Retraction of repudiation |
|||||||
C. |
The repudiatee’s option to sue or continue the contract |
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D. |
Repudiatee’s inability to perform |
|||||||
E. |
Repudiatee owes no remaining duties |
|||||||
1. |
Payment of money |
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F. |
Damages for repudiation under UCC |
|||||||
1. |
When does buyer learn of breach |
|||||||
G. |
Right to demand assurances of performance |
|||||||
Quiz Yourself on |
||||||||
Exam Tips on |
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Chapter 9 |
||||||||
I. |
INTRODUCTION |
|||||||
II. |
SURETYSHIP AGREEMENTS |
|||||||
A. |
General rule |
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1. |
Purpose of rule |
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2. |
Applies to defaults as well as debts |
|||||||
3. |
Other person must be liable |
|||||||
4. |
Promise must be made to creditor |
|||||||
B. |
The main purpose rule |
|||||||
C. |
Memorandum requirement |
|||||||
Quiz Yourself on |
||||||||
III. |
THE MARRIAGE PROVISION |
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IV. |
THE LAND CONTRACT PROVISION |
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A. |
Contracts to transfer and buy land |
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B. |
Interests in land |
|||||||
C. |
Effect of vendor’s performance or vendee’s reliance |
|||||||
1. |
Conveyance by vendor |
|||||||
2. |
Vendee’s detrimental reliance |
|||||||
Quiz Yourself on |
||||||||
V. |
THE ONE-YEAR PROVISION |
|||||||
A. |
General rule |
|||||||
1. |
Time runs from making of the contract |
|||||||
B. |
Performance must be impossible within the one-year period |
|||||||
1. |
Contingency judged from time of contract’s execution |
|||||||
2. |
Impossibility or other excuse for non-performance |
|||||||
C. |
Alternative performances |
|||||||
1. |
Termination clauses |
|||||||
D. |
Full performance on one side |
|||||||
E. |
One-year provision applies to all contracts |
|||||||
Quiz Yourself on |
||||||||
VI. |
CONTRACT FOR THE SALE OF GOODS |
|||||||
A. |
Goods versus other property under the UCC |
|||||||
B. |
General rule as to goods |
|||||||
1. |
Contracts combining services and goods |
|||||||
2. |
Exceptions to the UCC Statute |
|||||||
Quiz Yourself on |
||||||||
VII. |
SATISFACTION OF THE STATUTE BY A MEMORANDUM |
|||||||
A. |
Requirement |
|||||||
B. |
What memorandum must contain |
|||||||
C. |
Signature |
|||||||
D. |
UCC memorandum requirements |
|||||||
1. |
Error or omission |
|||||||
2. |
Confirmation from one merchant to another |
|||||||
VIII. |
EFFECT OF NON-COMPLIANCE |
|||||||
A. |
Effect where only part of the contract is within the Statute |
|||||||
IX. |
ORAL RESCISSION AND MODIFICATION |
|||||||
A. |
Oral rescission |
|||||||
B. |
Modification |
|||||||
1. |
Modified contract viewed as if it were original contract |
|||||||
2. |
Effect of unenforceability |
|||||||
3. |
Reliance on oral modification |
|||||||
C. |
No-oral-rescission-or-modification clauses |
|||||||
X. |
RESTITUTION, RELIANCE AND ESTOPPEL |
|||||||
A. |
Remedies generally |
|||||||
B. |
Quasi-contractual recovery |
|||||||
1. |
Not limited by contract price |
|||||||
2. |
Plaintiff must not be in material default |
|||||||
3. |
Reliance damages |
|||||||
C. |
Promissory estoppel |
|||||||
1. |
Traditional estoppel grounds |
|||||||
2. |
Grounds broadened |
|||||||
3. |
Limit still imposed on doctrine |
|||||||
Quiz Yourself on |
||||||||
Exam Tips on |
||||||||
Chapter 10 |
||||||||
I. |
INTRODUCTION |
|||||||
A. |
Recovery on and off the contract |
|||||||
1. |
Suit “on the contract” |
|||||||
2. |
Suit in “quasi-contract” |
|||||||
B. |
Law/equity distinction |
|||||||
II. |
EQUITABLE REMEDIES |
|||||||
A. |
Equitable relief generally |
|||||||
1. |
Unified system |
|||||||
2. |
Types of equitable relief |
|||||||
B. |
Limitations on the use of equity |
|||||||
1. |
Inadequacy of damages |
|||||||
2. |
Definiteness |
|||||||
3. |
Difficulty of enforcement or supervision |
|||||||
C. |
Land-sale contracts |
|||||||
D. |
Contracts involving personal services |
|||||||
E. |
Sale of goods |
|||||||
Quiz Yourself on |
||||||||
III. |
KINDS OF DAMAGE MEASURES |
|||||||
A. |
Three kinds of interest |
|||||||
IV. |
EXPECTATION DAMAGES |
|||||||
A. |
Expectation interest |
|||||||
1. |
“Benefit of the bargain” |
|||||||
B. |
Usual formula for calculating expectation damages |
|||||||
C. |
Construction contracts |
|||||||
1. |
Builder breaches |
|||||||
2. |
Owner breaches |
|||||||
D. |
Allocation of overhead |
|||||||
E. |
Cost of completion vs. decrease in value |
|||||||
F. |
Requirement of reasonable certainty |
|||||||
1. |
Profits from a new business |
|||||||
2. |
Public whim |
|||||||
3. |
Cost of completion unknown |
|||||||
4. |
Alternative damage measure chosen |
|||||||
5. |
UCC has liberal certainty requirement |
|||||||
G. |
UCC follows expectation rule |
|||||||
Quiz Yourself on |
||||||||
V. |
RELIANCE DAMAGES |
|||||||
A. |
General function of reliance damages |
|||||||
1. |
Reliance damages as a component of expectation damages |
|||||||
B. |
Reliance damages where profits too speculative |
|||||||
C. |
Promissory estoppel |
|||||||
D. |
Doctor-patient contracts |
|||||||
E. |
Limitations on amount of reliance recovery |
|||||||
1. |
Contract price as limit |
|||||||
2. |
Recovery limited to profits |
|||||||
3. |
Expenditures prior to signing of contract |
|||||||
F. |
Cost to plaintiff, not value to defendant |
|||||||
G. |
Reliance damages under the UCC |
|||||||
VI. |
RESTITUTION |
|||||||
A. |
Restitution generally |
|||||||
1. |
Calculation of value |
|||||||
B. |
Restitution as a remedy for breach of contract |
|||||||
C. |
Restitution not limited to the contract price |
|||||||
1. |
Rationale |
|||||||
2. |
Restitution not available where plaintiff has fully performed |
|||||||
D. |
Restitution in losing contract |
|||||||
E. |
Restitution for the breaching plaintiff |
|||||||
Quiz Yourself on |
||||||||
VII. |
SUBSTANTIAL PERFORMANCE AS A BASIS FOR SUIT ON THE CONTRACT |
|||||||
A. |
Substantial performance generally |
|||||||
B. |
Calculation of defendant’s damages |
|||||||
1. |
Cost of remedying defect |
|||||||
2. |
Where waste involved |
|||||||
C. |
Divisible contracts |
|||||||
VIII. |
SUITS IN QUASI-CONTRACT |
|||||||
A. |
Situations where quasi-contract may be used |
|||||||
B. |
Measure of damages |
|||||||
C. |
Quasi-contract where no contract attempted |
|||||||
1. |
Rationale |
|||||||
2. |
Emergency services supplied |
|||||||
D. |
Unenforceable contracts |
|||||||
E. |
Quasi-contractual recovery by a breaching plaintiff |
|||||||
1. |
Use in construction cases |
|||||||
2. |
Payments made by party in breach |
|||||||
3. |
Limited to pro-rata contract price |
|||||||
4. |
“Willful” default |
|||||||
5. |
UCC allows partial restitution to breaching buyer |
|||||||
F. |
Plaintiff not entitled to contract damages |
|||||||
Quiz Yourself on |
||||||||
IX. |
FORESEEABILITY |
|||||||
A. |
General limits on consequential damages |
|||||||
B. |
Hadley v. Baxendale |
|||||||
C. |
Universally followed |
|||||||
1. |
Nomenclature used by courts |
|||||||
2. |
Factors bearing on unforeseeability |
|||||||
3. |
Parties may allocate risks themselves |
|||||||
4. |
Knowledge of consequential damages necessary |
|||||||
5. |
Foreseeability distinguished from certainty |
|||||||
6. |
Time for measuring foreseeability |
|||||||
7. |
UCC rule is liberal |
|||||||
8. |
Buyer who has to pay liquidated damages to third party |
|||||||
X. |
AVOIDABLE DAMAGES |
|||||||
A. |
General rule |
|||||||
1. |
“Duty to mitigate” |
|||||||
B. |
Standard of reasonableness |
|||||||
1. |
Personal service contract |
|||||||
C. |
Sales contracts |
|||||||
1. |
Obligation of aggrieved buyer |
|||||||
2. |
Seller’s duty to mitigate |
|||||||
D. |
Affirmative conduct by plaintiff which increases loss |
|||||||
E. |
Non-exclusive contracts |
|||||||
F. |
Losses incurred in avoiding damages |
|||||||
Quiz Yourself on |
||||||||
XI. |
NOMINAL AND PUNITIVE DAMAGES |
|||||||
A. |
Non-compensatory damages |
|||||||
B. |
Nominal damages |
|||||||
C. |
Punitive damages |
|||||||
D. |
Damages for mental suffering |
|||||||
XII. |
LIQUIDATED DAMAGES |
|||||||
A. |
Reason for liquidated damages clauses |
|||||||
B. |
Rules of enforceability |
|||||||
C. |
Policy against penalties |
|||||||
D. |
Reasonableness of amount |
|||||||
E. |
Difficulty of fixing damages |
|||||||
F. |
Damage clause limiting probable recovery |
|||||||
G. |
UCC rules on liquidated damages |
|||||||
H. |
Consequence of unenforceability |
|||||||
Quiz Yourself on |
||||||||
XIII. |
DAMAGES IN SALES CONTRACTS |
|||||||
A. |
Distinction between acceptance and rejection |
|||||||
B. |
Buyer’s damages generally, where goods have not been accepted |
|||||||
1. |
Right of cover |
|||||||
2. |
Contract/market differential |
|||||||
3. |
Consequential and incidental damages |
|||||||
4. |
Specific performance |
|||||||
5. |
Rejection as a remedy |
|||||||
C. |
Seller’s damages for breach |
|||||||
1. |
Resale by seller |
|||||||
2. |
Contract/market differential |
|||||||
3. |
Lost profits |
|||||||
4. |
Seller’s action for the price |
|||||||
5. |
Incidental damages |
|||||||
6. |
No consequential damages |
|||||||
7. |
Liquidated damages |
|||||||
D. |
Damages where the goods are accepted |
|||||||
1. |
Seller’s action for price |
|||||||
2. |
Claim of buyer who has accepted |
|||||||
Quiz Yourself on |
||||||||
Exam Tips on |
||||||||
Chapter 11 |
||||||||
I. |
ASSIGNMENT AND DELEGATION GENERALLY |
|||||||
A. |
Introduction |
|||||||
B. |
Assignment distinguished from delegation |
|||||||
II. |
ASSIGNMENT |
|||||||
A. |
Present transfer |
|||||||
1. |
Significance of distinction |
|||||||
B. |
Assignor’s right extinguished |
|||||||
C. |
UCC rules on assignment |
|||||||
1. |
What assignments are covered by Article 9 |
|||||||
2. |
Where Article 9 does apply |
|||||||
D. |
No writing required absent statute |
|||||||
E. |
Gratuitous assignments |
|||||||
F. |
What rights are assignable |
|||||||
G. |
Contract terms prohibiting assignment |
|||||||
H. |
Rights of the assignee against the obligor |
|||||||
1. |
Significance |
|||||||
2. |
Effect of obligor’s giving performance to assignor |
|||||||
3. |
Modification of the contract by obligor and assignor |
|||||||
4. |
Waiver of defenses by obligor |
|||||||
5. |
Counterclaims, set-offs and recoupment by the obligor |
|||||||
I. |
Rights of successive assignees of the same claim |
|||||||
J. |
Rights of assignee against assignor |
|||||||
Quiz Yourself on |
||||||||
III. |
DELEGATION OF DUTIES |
|||||||
A. |
Delegation generally |
|||||||
B. |
Continued liability of delegator |
|||||||
1. |
Rationale |
|||||||
2. |
Novation |
|||||||
C. |
Non-delegable duties |
|||||||
D. |
The delegate’s liability |
|||||||
1. |
Promise made solely for delegator’s benefit |
|||||||
2. |
“Assumption” |
|||||||
3. |
General “assignment” of the “contract” |
|||||||
E. |
Delegation of non-delegable duties |
|||||||
Quiz Yourself on |
||||||||
IV. |
THIRD PARTY BENEFICIARIES |
|||||||
A. |
Introduction |
|||||||
B. |
Older cases and the First Restatement |
|||||||
C. |
Second Restatement’s abandonment of the two category structure |
|||||||
1. |
“Intended” beneficiaries may recover |
|||||||
2. |
Definition of “intended beneficiary” |
|||||||
3. |
Incidental beneficiaries |
|||||||
4. |
Factors to determine who is “intended” beneficiary |
|||||||
5. |
Beneficiary’s assent or knowledge unnecessary |
|||||||
D. |
Some frequently arising situations |
|||||||
1. |
Public contracts |
|||||||
2. |
Real estate neighbors |
|||||||
3. |
Mortgage assumptions |
|||||||
E. |
Discharge or modification by the original parties |
|||||||
F. |
Defenses against the beneficiary |
|||||||
G. |
Beneficiary versus promisee |
|||||||
H. |
The UCC and third party beneficiaries |
|||||||
Quiz Yourself on |
||||||||
Exam Tips on |
||||||||
Chapter 12 |
||||||||
I. |
INTRODUCTION |
|||||||
II. |
IMPOSSIBILITY OF PERFORMANCE |
|||||||
A. |
Supervening impossibility generally |
|||||||
B. |
Restatement approach |
|||||||
C. |
Destruction or unavailability of the subject matter |
|||||||
1. |
Taylor v. Caldwell |
|||||||
2. |
Determining subject matter of the contract |
|||||||
3. |
General rule |
|||||||
4. |
Contract to build a structure from scratch |
|||||||
5. |
Building renovation |
|||||||
6. |
Contracts for the sale of goods |
|||||||
D. |
Impossibility of intangible but essential mode of performance |
|||||||
1. |
Defective or unrealistic specifications |
|||||||
2. |
Impossibility due to failure of third person |
|||||||
E. |
Death or illness |
|||||||
F. |
Supervening illegality |
|||||||
G. |
Temporary impossibility |
|||||||
III. |
IMPRACTICABILITY |
|||||||
A. |
Impracticability as a kind of impossibility |
|||||||
B. |
UCC in accord with modern view |
|||||||
1. |
What is impracticable under the Code |
|||||||
2. |
Use by buyer |
|||||||
3. |
Allocation of risk by parties |
|||||||
IV. |
FRUSTRATION OF PURPOSE |
|||||||
A. |
Frustration of purpose distinguished from impossibility |
|||||||
B. |
Factors to be considered |
|||||||
C. |
UCC view |
|||||||
Quiz Yourself on |
||||||||
V. |
RESTITUTION AND RELIANCE WHERE THE PARTIES’ OBLIGATIONS HAVE BEEN DISCHARGED |
|||||||
A. |
Shifting the losses |
|||||||
B. |
Return of down payment |
|||||||
C. |
Restitution |
|||||||
Quiz Yourself on |
||||||||
Exam Tips on |
||||||||
Chapter 13 |
||||||||
I. |
ILLEGALITY |
|||||||
A. |
Kinds of illegal contracts |
|||||||
1. |
Gambling contracts |
|||||||
2. |
Contract to buy an illegal business |
|||||||
3. |
Usurious contracts |
|||||||
4. |
Covenants not to compete |
|||||||
5. |
Commercial bribery |
|||||||
6. |
Exculpatory contracts |
|||||||
7. |
Licensing requirements |
|||||||
8. |
Impairment of family relations |
|||||||
B. |
Effects of illegality on contractual recovery |
|||||||
Quiz Yourself on |
||||||||
II. |
DURESS |
|||||||
III. |
MISREPRESENTATION |
|||||||
A. |
Misrepresentation generally |
|||||||
B. |
Elements of proof required |
|||||||
C. |
Concealment and nondisclosure |
|||||||
Quiz Yourself on |
||||||||
IV. |
UNCONSCIONABILITY AND ADHESION CONTRACTS |
|||||||
A. |
Weapons against unfair contracts |
|||||||
B. |
Adhesion contracts |
|||||||
C. |
Unconscionability generally |
|||||||
D. |
The Code view generally |
|||||||
E. |
Varieties of unconscionability |
|||||||
1. |
Procedural unconscionability |
|||||||
2. |
Substantive unconscionability |
|||||||
F. |
Excessive price |
|||||||
G. |
Remedy-meddling |
|||||||
H. |
Remedies for unconscionability |
|||||||
V. |
CAPACITY |
|||||||
A. |
Capacity generally |
|||||||
B. |
Infants |
|||||||
C. |
Mental incompetents |
|||||||
Quiz Yourself on |
||||||||
Exam Tips on |
||||||||
Chapter 14 |
||||||||
I. |
WARRANTIES GENERALLY |
|||||||
A. |
Nature of warranty |
|||||||
B. |
Proving breach of warranty |
|||||||
II. |
EXPRESS WARRANTIES |
|||||||
A. |
Express warranty defined |
|||||||
1. |
Basis of the bargain |
|||||||
2. |
Puffing |
|||||||
3. |
Descriptions |
|||||||
4. |
Sample or model |
|||||||
III. |
IMPLIED WARRANTY OF MERCHANTABILITY |
|||||||
A. |
The warranty of merchantability generally |
|||||||
B. |
Meaning of “merchantable” |
|||||||
C. |
Cigarettes and alcohol |
|||||||
IV. |
WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE |
|||||||
A. |
Warranty of fitness generally |
|||||||
B. |
Conditions |
|||||||
V. |
THE WARRANTY OF TITLE AND AGAINST INFRINGEMENT |
|||||||
VI. |
PRIVITY |
|||||||
VII. |
DISCLAIMERS OF WARRANTY |
|||||||
A. |
Disclaimers generally |
|||||||
B. |
Disclaimers of express warranty |
|||||||
1. |
Description amounting to a warranty |
|||||||
2. |
Oral warranties prior to written contract |
|||||||
C. |
Disclaimers of implied warranty |
|||||||
VIII. |
MODIFYING CONTRACT REMEDIES |
|||||||
A. |
Modification of remedies distinguished from disclaimers |
|||||||
B. |
Code limitations |
|||||||
1. |
“Failure of essential purpose” |
|||||||
2. |
Unconscionability |
|||||||
Quiz Yourself on |
||||||||
Exam Tips on |
||||||||
Chapter 15 |
||||||||
I. |
RESCISSION |
|||||||
A. |
Mutual rescission |
|||||||
B. |
Where fully performed on one side |
|||||||
C. |
Writing not necessary |
|||||||
D. |
Duty to pay for benefits received |
|||||||
E. |
Unilateral rescission |
|||||||
II. |
EXECUTORY ACCORDS AND “ACCORD AND SATISFACTION” |
|||||||
A. |
Executory accord |
|||||||
B. |
Consequence of accord |
|||||||
C. |
Check cashing as an accord and satisfaction |
|||||||
III. |
SUBSTITUTED AGREEMENT |
|||||||
A. |
Substituted agreement distinguished from executory accord |
|||||||
B. |
Consequences of substituted agreement |
|||||||
C. |
Distinguishing between an executory accord and a substituted agreement |
|||||||
D. |
Formal requirements for substituted agreement |
|||||||
IV. |
NOVATION |
|||||||
V. |
ACCOUNT STATED |
|||||||
VI. |
RELEASE AND COVENANT NOT TO SUE |
|||||||
Quiz Yourself on |
||||||||
Exam Tips on |
||||||||
ESSAY EXAM QUESTIONS AND ANSWERS |
||||||||
TABLE OF CASES |
||||||||
TABLE OF UCC REFERENCES |
||||||||
TABLE OF RESTATEMENT REFERENCES |
||||||||
SUBJECT MATTER INDEX |