Contracts

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Contracts II

Spring 2011

LAW 120, Mondays 6:00 – 8:30 pm

F.H. Buckley

Administrative Matters

The class will be an extended conversation about a fundamental institution of private ordering. For the most part, the problems we’ll encounter can be answered by the application of common sense—a proposition I’ll test by asking you to think about the contours of contract law before and during class. Each student is expected to be prepared for every class, and to be ready, willing and able to answer any questions regarding the assigned reading material.

My office is on the 4th Floor, and my phone number is 703-993-8028. Unless a matter requires immediate personal attention, I encourage you to contact me at fbuckley@gmu.edu. If you anticipate that you will be stopping by my office, please drop me an email or let me know after class that you will be coming. If my door is open, feel free to drop in. Which is not to say that I’ll be free to see you immediately, unless you have made arrangements with me in advance.

Grading and Exam

The Final Exam will be on May 5, 2011 at 600 pm. It will be Open Code, which means that you can bring your statutory supplement into the exam room. You will be permitted to annotate it with any notes that you make in it yourself, but you may not add any pages to it. You will not be permitted to bring in any other materials, such as the casebook. Your grade in the class will be based on the final exam. I reserve the right to increase a student’s grade on the basis of exemplary class participation.

Course Materials

Some readings will be posted on my blog, buckleysmix.com (“blog”). Your course materials are Robert E. Scott and Jody S. Kraus, Contract Law and Theory (4 th ed.) (“Scott”); and James E. Byrne,

Restatement 2 nd

Contracts and US UCC Article 2.

First Assignment

The assignment for the first class is Scott 279-313 and 29-41, and related sections of the Restatement and UCC, as listed below. Subsequent readings will be assigned in class.

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Reading Assignments

Contracts II (Spring 2011)

I.

RELATIONAL CONTRACTS

1.

Preliminary Negotiations

Scott 279-99

Restatement §§ 21, 26-27

2.

Indefinite Agreements

Scott 29-41, 299-313

Restatement §§ 33-34, 204-05

UCC §§ 2-103(1)(b), 2-204, 2-206, 2-208, 2-305, 2-308, 2-309

3.

Output, Requirement, Exclusive Dealings

Scott 313-75

UCC §§ 1-201(20), 2-103(1)(b), 2-104(1), 2-204, 2-206, 2-208, 2-305, 2-306,

2-309

4.

Contract Modification

Scott 375-89

Restatement §§ 72, 73, 82, 84-86, 89

UCC §§ 2-209

II.

THE TERMS OF THE CONTRACT

Scott 541-45

2

1.

Identifying the Terms

The Common Law Parole Evidence Rule

Scott 545-56

Rest. §§ 209-18

The UCC Parole Evidence Rule

Scott 557-62

UCC § 2-202

Merger Clauses

Scott 562-78

Rest. § 216 cmt. e, § 209, cmt. b.

2.

Interpreting the Terms

At Common Law

Scott 578-602

Rest. §§ 200-04, 219-23

Under the UCC

Scott 602-18

UCC §§ 1-205, 2-202

III.

CONDITIONS

1.

Implied Conditions

Scott 621-32, 73-84, 632-44

Rest. §§ 224-26, 230, 234, 237-38, 240

UCC § 2-307

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2.

Express Conditions

Scott 632-44

Rest. §§ 224, 226-27, 229-30

IV.

WARRANTIES

1.

Express and Implied Warranties

Scott 659-81

UCC §§ 2-313 – 2-317

2.

Substantial Performance vs. Perfect Tender

Scott 65-72, 682-705

Rest.

§§ 237, 241-42

UCC §§ 1-205, 2-106, 2-503, 2-507, 2-508, 2-601, 2-602, 2-607,

2-608, 2-711

V.

MISTAKE, EXCUSE, FRUSTRATION

1.

Mistake

Scott 709-47

Restatement §§ 151-57

2.

Excuse: Impossibility and Commercial Impraticability

Scott 747-50, 84-93, 750-81

Restatement §§ 261-70

UCC §§ 2-613 -- 2-615, 2-315

3.

Frustration

Scott 781-94

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Restatement §§ 265-66

VI.

BREACH

Scott 795-818

Rest. §§ 250-57, 350

UCC §§ 2-609 – 2-611, 2-702

VII.

REMEDIES

1.

The Contractual Measure of Damages

Scott 93-107, 863-80

Rest. §§ 344, 346-48, 352-53

2.

Specific Performance

Scott 880-89

Rest. §§ 345, 357-67

UCC § 2-(716)

3.

Reliance Damages

Scott 889-902

Rest. §§ 349

4.

Restitution

Scott 902-11

Rest. §§ 370-71, 373-77

5.

Punitive Damages

Scott 912-25

Rest. §§ 353, 355

5

Hersheys Ordered to Pay Obese Americans $135B, at http://www.theonion.com/content/node/28407

6.

Uncertainty

Scott 951-57

7.

Forseeability

Scott 113-19, 957-68

Rest. §§ 351

Crème That Egg!, at http://www.youtube.com/watch?v=vrCb_fNmSTA

8.

Mitigation

Scott 968-79

Rest. § 350

Stephen Crane, In the Desert, at http://poetry.poetryx.com/poems/4666/

9.

Liquidated Damages and Penalties

Scott 979-96

Rest. § 356

UCC § 2-718

Merchant of Venice I.iii, at http://www.zuguide.com/index.php#The-Merchant-of-Venice

VIII.

THIRD PARTY RIGHTS

1.

Contract Beneficiaries

Scott 1001-46

Restatement § 302, 311

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2.

Assignments and Delegation

Scott 1047

Restatement § 321

UCC § 2-210, 2-609

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