contracts michigan fall03

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OUTLINE DETAILS:Author: AnonymousSchool: University of Michigan Law SchoolCourse: Contracts

Year: Fall, 2003Professor: James J. WhiteText: James J. White Coursepack (Fall 2003)Text Authors: James J. White

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CONTRACTS OUTLINE

I. A Roadmap for Contract Law .............................................................................................................II. The Bargain Theory of Contract .........................................................................................................

A. Consideration ..................................................................................................................................B. Reliance ...........................................................................................................................................C. The Restitution Interest ...................................................................................................................

III. Negotiation and the Contract ..............................................................................................................A. The Role of the Courts ....................................................................................................................B. Offer and Acceptance .....................................................................................................................C. Negotiation and Closure .................................................................................................................D. Good Faith in Contract Formation ..................................................................................................E. Problems with Standard Form Contracts ........................................................................................F. The Statute of Frauds ......................................................................................................................

IV. The Content of a Contract ...................................................................................................................

A. The Parol Evidence Rule and Reformation ....................................................................................B. Interpreting the Terms of the Contract ............................................................................................C. Implied Terms and the Implied Covenant of Good Faith ...............................................................D. Express and Implied Warranties .....................................................................................................E. Modifications ..................................................................................................................................

V. Legal Regulation of Contracts ............................................................................................................A. Mistake of Fact ...............................................................................................................................B. Public Policy and Illegality .............................................................................................................C. Unconscionability ...........................................................................................................................

VI. Remedies .............................................................................................................................................A. Expectation Damages ......................................................................................................................

B. Mitigation ........................................................................................................................................C. Reliance Damages ...........................................................................................................................D. Restitution Damages .......................................................................................................................E. Specific Performance ......................................................................................................................F. Liquidated Damages and Agreed Remedies ...................................................................................

VII. Conditions ...........................................................................................................................................A. Express Conditions .........................................................................................................................B. Implied or Constructive Conditions ................................................................................................C. Impossibility, Impracticability, and Frustration ..............................................................................

VIII.Third Party Rights and Responsibilities .............................................................................................A. The Assignment of Rights and Delegation of Responsibilities ......................................................

B. Suretyship and Guaranty Contracts ................................................................................................


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CasesA.Z. v. B.Z., 431 Mass. 150............................................................................................46Alabama Football v. Wright, 452 F.Supp 182.................................................................62Angel v. Murray, 322 A.2d 630.......................................................................................42

Ardente v. Horan, 117 R.I. 254.......................................................................................20Arnold Palmer Golf Co. v. Fuqua Industries, Inc., 541 F.2d 584....................................22Bailey v. West, 105 R.I. 61..............................................................................................17Baker v. Bailey, 240 Mont. 139.......................................................................................32Bank One v. Coates, 125 F.Supp.2d 819.........................................................................48Board of Control of Eastern Michigan University v. Burgess, 45 Mich. App. 183........14Brookside Farms v. Mama Rizzos, Inc, 873 F.Supp 1029.............................................43C & J Fertilizer, Inc. v. Allied Mutual Insurance Co., 227 N.W.2d 169.........................27C.R. Klewin, Inc. v Flagshp Properties, Inc., 220 Conn. 569.........................................29

Carnival Cruise Lines v. Shute, 499 U.S. 585.................................................................26Carpenter v. Chrysler Corp., 853 S.W.2d 346.................................................................40Centronics Corp. v. Genitron Corp., 132 N.H. 133.........................................................38City of Kenai v. Ferguson, 732 P.2d 184........................................................................23City Stores Co. v. Ammerman, 266 F.Supp. 766............................................................54Clouse v. Myers, 753 S.W.2d 316...................................................................................45Cohen v. Cowles Media Company, 479 N.W.2d 387.....................................................16ConAgra, Inc. v. Nierenberg, 301 Mont. 55....................................................................29Contemporary Mission v. Famous Music Corp., 557 F.2d 918......................................64Davis v. Satrom, 383 N.W.2d 831...................................................................................19

Delchi Carrier SpA. v. Rotorex Corp., 71 F.3d 1024........................................................7Donahue v. Federal Express Corp., 753 A.2d 238..........................................................39Empire Gas Corp. v. American Bakeries Co., 840 F.2d 1333.........................................39ePlus Group, Inc. v. Panoramic Comm., 50 UCC 2d 213 (2003)...................................56Fertico Belgium v. Phosphate Chemicals Export Assn, 501 N.Y.S.2d 867...................51Fiege v. Boehm, 210 Md. 352.........................................................................................13Fisher v. Jackson, 142 Conn. 734....................................................................................14Ford Motor Credit Co. v. Russell, 519 N.W.2d 460........................................................18Freund v. Washington Square Press, 34 N.Y.2d 379......................................................49

Gardner Zemke Co. v. Dunham Bush, Inc., 115 N.M. 260.............................................25Hadley v. Baxendale, 9 Exch 341 (1845)........................................................................51Haines v. City of New York, 41 N.Y.2d 769..................................................................37Hamer v. Sidway, 124 N.Y. 538......................................................................................13Hamilton Bancshares, Inc. v. Leroy, 131 Ill. App. 3d 907..............................................21Harrington v. Taylor, 225 N.C. 690.................................................................................15Hill v. Gateway 2000, 105 F.3d 1147..............................................................................27

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StatutesMagnussen-Moss.............................................................................................................63Restatement 145.............................................................................................................63Restatement 261.............................................................................................................59

Restatement 346 (1)(a)(ii)..............................................................................................50Restatement 346(1)(a)(i)................................................................................................50Restatement 71(a)..........................................................................................................20Restatement 76...............................................................................................................12Restatement 76(b)..........................................................................................................13Restatement 79...............................................................................................................12Restatement 2d 1............................................................................................................12Restatement 2d 110........................................................................................................28Restatement 2d 131........................................................................................................29

Restatement 2d 139........................................................................................................30Restatement 2d 151........................................................................................................44Restatement 2d 152........................................................................................................44Restatement 2d 153........................................................................................................44Restatement 2d 154........................................................................................................44Restatement 2d 175........................................................................................................13Restatement 2d 20..........................................................................................................20Restatement 2d 202........................................................................................................34Restatement 2d 204........................................................................................................32Restatement 2d 205..................................................................................................23, 38

Restatement 2d 211(3)...................................................................................................27Restatement 2d 217........................................................................................................32Restatement 2d 227(1)...................................................................................................59Restatement 2d 230........................................................................................................37Restatement 2d 237........................................................................................................60Restatement 2d 24..........................................................................................................18Restatement 2d 26 comment (c)....................................................................................19Restatement 2d 30(1).....................................................................................................20Restatement 2d 356........................................................................................................55

Restatement 2d 36..........................................................................................................19Restatement 2d 360........................................................................................................53Restatement 2d 42..........................................................................................................21Restatement 2d 45..........................................................................................................21Restatement 2d 45(1).....................................................................................................21Restatement 2d 45(2).....................................................................................................21Restatement 2d 59..........................................................................................................19


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I.A ROADMAPFORCONTRACT LAW

1.Lucy v. Zehmer, 196 Va. 493 (1954)

a)Facts: allegedly enters a contract with for the sale of land. says they were serious, but says he was clearly only jokingaround. wants specific performance.

b)Issue: Was there a contract, and is it enforceable?

c)Held: The contract was in good faith and specific performancewas awarded. The private intentions of are irrelevant, only themanifested acts.

2.Delchi Carrier SpA. v. Rotorex Corp., 71 F.3d 1024 (1995)

a)Facts: , an Italian company contracted for goods from w/ aletter of credit. The goods upon arrival were not to spec and wasnt able to use the goods. covered with extra expense.

b)Issue: Under the CISG is able to recover damages fornonconforming goods?

c)Result: was entitled to lost profits, foreseeable consequentialdamages. was not entitled to damages for modificationsnecessary for cover.


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Table 1 Topics, Rules, and Keywords

Issue Case Rule Key Terms

Bargain Hamer v. Sidway Forbearance from a legal rightUnconscionability Williams v. Walker-

Thomas2-302

Mutuality Wood v LucyLaclede Gas vAmoco

2-306 IllusoryNo free way outOutput KRequirement KImplied good faith effortAt will employment

ExpectationDamages

Goods: Freund v.Washington Sq.PressServices:Peevyhouse

Buyer: 2-712- 2-716Seller: 703; 704;706; 708; 709Buyer:Cost to completeDiminution in valueSeller: ukp-costavoided

MitigationForeseeability (Hadley v.Baxendale)

SpecificPerformance

Lucy v. ZehmerCity Stores v.Ammerman

Injunction (money insufficient)Unique good- cant be pricedLDC 356; 2-718Penalty

Reliance Reasonable time periodPut in position before K

Restitution Break even rationale

K Interpretation Lucy v ZehmerFrigaliment

20201219,220,221,222,232

Express termsCourse of PerformanceCourse of DealingTrade Usage

Offer 24Acceptance Ardente v Horan

Pavel Enterprises41, 39, 59, 37,302-207

Mail box ruleAuctionsBid chopping/shoppingCounterofferNoticeSilence

Past dealingsBenefit conferred

Parol Evidence Baker v. BaileyMasterson v. Sine

209, 210, 213, 215,2162-2022-209

IntegrationMerger Clause


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Issue Case Rule Key Terms

Mistake Sherwood v Walker (barren cow)Lenawee v Messerly(septic tank)

152, 154,2-313, 2-314, 2-315

WarrantyMutual MistakeAllocation of Risk

UnilateralMistake Lanci v. Met Ins.Co. 153

SubstantialPerformance

Jacob &Young v.Kent (wrong pipes)

2-601 (perfect tender);2-508 (cure); 2-608(revocation ofacceptance); 2-612(installment K)

Implied promise to meetcondition- good faithSubjective and objective standard

ExpressConditions

Howard v. Fed. CropIns. (tobacco crop)

227 (condition v.promise);

Implied promise to meetcondition

Breach and

Response

K & G Construction

co. v. Harris(workmanlikemanner);

241; 242 Material breach

Substantial performance

AnticipatoryBreach

Taylor v. Johnston 253; 236; 2-610; 2-611

Mitigation, cover

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