CONTRACTS, Fall 2006 Prof. Warner 906-5340 rwarner@kentlaw.edu Text: Available in two forms: an electronic casebook, and in xerox in the bookstore. W eb Site: There is a web site—w ww .kentlaw .edu/classe s/rwarner/contacts--for th e course. It offers online lectures and tutorials. Please complete these m aterials before coming to the class on the topic for which they are assigned. Mid-term exam ination: There is one multiple choice, open book midterm exam. The m idterm exam grade w ill count for 10% of your grade. Final examination: Mu ltiple choice a nd essay--op en b ook. The final will count for 90% of your grade. Attendance policy: You are allowed three unexcu sed absen ces. If you have m ore than three unexcused absences, your grade may be reduced by ½ a grade or mo re, dep end ing on the nu mber of ab sences. Timeliness: You will be at class on time, prepared to begin instructio n a t th e time set for the class. Arriving late may coun t as an unex cuse d absence. Participation policy: You will be prepared to answer questions. prepared may a ffect yo ur grade ad versely. Failure to be Office hou rs: I a m typically at the la w school five days a week. Come by any time. I usua lly can make tim e to talk to you. If not, we can arrange another time. You can ca ll or e-m ail me to make sure that I am available. I also try to respond as promptly as possible to e-m ailed questions. What you need to know and be able to do for the exam: Black letter rules You must know , and be able to state accura tely, the b lack letter rules. You must know the purpose behind the rule. These two tasks are sim ply mem ory tasks. The m aterial on the course web site is inten ded to he lp you with th is task. Application of the rules You mu st be able to apply rules to facts to draw a legal conclusion. Th is requires knowledge of the purpose of the rule. That is what guides your app lication to the facts. On e of the main points of class time is to learn how to ap ply rules to facts. Leg al ana lysis You must be able to rea d a complex fact pattern that pres ents various legal questions and determine which rules you need to apply to answer those que stio ns. You must be able to determ ine the logical order in wh ich you sh ould organize your discussion . I. Consideration W hat promises does the law enforce? Tutorial: Consideration 1 and Consideration Overview Dou gh erty v. Sa lt Linder v. Mid-Continent Understanding the bargain theory: Tutorial: Consideration 2 Nominal consideration: Schn ell v. Nell Illusory promises: Tutorial: Consideration 3 Wickham v. Burton Coal The implied promise solution: Tutorial Consideration 4 Laclede Ga s Co. v. Am oco Wood v. Lucy, Lady Duff-Gordon UCC 2-306 The pre-existing duty rule: Tutorial: Consideration 5 Gray v. Martino 2 De Cicco v. Schweizer Lingenfelder v. Wainwright Angel v. Murray UCC 2-209 Th is material will not be covered in class; you are responsible for learning it on you r own using th e reso urce s on the w eb site. Giv ing up a leg al cla im Tutorial: Consideration 6 Newm an & Snell's State Bank v. Hunter Springstead v. Nees Mullen v. Hawkins Past consideration consideration: and moral obligation Tutorial: Consideration 7 Jones v. Jones Mills v. Wym an Web b v . McG ow in Harrington v. Taylor This concludes the material not covere d in class. Consideration as a lega l detrim ent or benefit: Hamm er v. Sidway 3 as Devecmon v. Shaw II. Interpretation Tutorial: Interpretation Objective intent Embry v. Hargadine Hypothetical Intent Spau lding v. M orse Trade Usage Berwick & Sm ith Co. v. Salem Press Implied promises UCC 2-314 UCC 2-315 III. Remedies The expectation measure: Tutorial: Rem edies 1 Hawkins v. McGee Tutorial: Rem edies 2 Rockingham County v. Luten Bridge Parker v. 20th Century Fox Foreseeability doctrine: Tutorial: Remedies 16 Ha dley v. Bax en da le 4 UCC 2-715(2) Buyer's remedies under the UCC: Tutorial: Rem edies 3 - 4 UCC §2-712 - §715 Seller's remedies under the UCC: Tutorial: Rem edies 5 UCC §2-706, §2-708 The “lost volum e” seller: Tutorial: Rem edies 6 Neri v. Retail Marine Corp. This material will not be covered in class, and will not be on any examination. It is provided for background if you are interested. Overhead and profit: Tutorial: Remedies 7 Vitex v. Caribtex Proving da ma ges w ith "reasonable certainty": Tutorial: Rem edies 8 Freund v. Washington Sq uare Press Rambola v. Cosindas Reliance damages: Tutorial: Rem edies 9 Security Stove v. Am erican Express 5 Beefy Trail v. Beefy King L. Albert & Son Liquidated damages: Tutorial: Remedies 10 Truck Ren t-A-Center v. Puritan Farms Lake River Corp. v. Carborundum Specific performance: Tutorial: Remedies 11 Londo n Buck et Co. v. Stewa rt UCC §2-716 Laclede Ga s Co. v. Am oco UCC §2-709 Cost of completion: Tutorial: Remedies 12 Peevyhouse v. Garland Coal & Mining Co. Jacobs & Young v. Kent City School District of Elmira v. McLane Construction Restitution: Tutorial: Remedies 13 Osteen v. Johnson IV. Problems of performance Sub stantial perform anc e (restitution an d recission ): Tutorial: Remedies 14 6 Kreyer v. Driscoll O. W. Grun Roofing & Construction v. Cope United States v. Alg erno n B lair Oliver v. Cam pb ell UCC §2-601 UCC §2-508 UCC §2-612 Excuse: Tutorial: Remedies 15 Iron Trade P roducts v. W ilkoff K & G Con struction v . Harris Walker & Co. v. Harrison Anticipatory repudiation: Hochster v. De La Tour Ha thaw ay v. Sa bin UCC §2-607 - §2-611 V. Splitting the losses Impracticability: Tutorial: Impracticability and Frustration Ta ylor v. Cald well Transatlantic Financing Corp. v. United States United States v. Wegematic Corp. Frustration: 7 Krell v. Henry Apportioning the losses: UCC 2-615 Albre Ma rble & Tile Co. v. Joh n Bowen C o. Mistake: Mutual mistake: Griffith v. Bymer Sherwood v. Walker Wood v. Boyton Unilateral mistake: Elsinore Union Elem entary School Dist. v. Kastoroff White v. Berenda n M esa W ater Dist. Transcription mistakes, jokes, amb iguities: Travelers Insurance Co. v. Bailey Lucy v. Zehmer Raffles v. Wichelhaus Oswald v. Allen VI. Offer and Acceptance Tutorial: Offer and Acceptance 1 The ma ilbox rule: Ad am s v. Lind sell Lewis v. Browning Lonergan v. Scolnick 8 What counts as an offer and as a revocation: Tutorial: Offer and Acceptance 2 and 3 Lefkowitz v. Great M inneapolis Surplus Store Akers v. Sedberry Dickenson v. Dodds Petterson v. Pattberg Ways of accepting and rejecting: Tutorial: Offer and Acceptance 4 Davis v. Jacoby Klockner v. Green Carhill v. Carbolic Smoke Ball Co. Tutorial: Offer and Acceptance 5 Drennan v. Star Paving Co. Shrink Wrap an d Browse W rap Cases ProCd v. Zeidenberg Specht v. Netscape Promissory Estoppel and Silence As Accep tance: Hoffman v. Red Owl Stores Cole-McIntyre-Norfleet Co. v. Holloway Day v. Caton The Mirror-Imag e Rule and the Battle of Forms: Ardente v. Horan Poel v. Brunswick-Balke-Collender 9 UCC 2-207 Dorton v. Collins & Aikman Corp. Itoh & Co. v. Jordan Int'l Co. VII. W ritten Contra cts Statute of frauds: No reading Parol evidence: The Basic Rule Tutorial: Parol Evidence 1 Mitchel v. Lath UCC 2-202 Scope and Complete Integrations Tutorial: Parol Evidence 2 Lee v. Seagram & Sons Ways Around the rule Tutorial: Parol Evidence 3 Hicks v. Bush Lusk corp. v. Bu rgess Green River Val. Foundation, Inc. v. Foster International Milling Co. v. Hachmeister Dan na n R ealty v. Ha rris Tutorial: Offer and Acceptance/Parol Evidence Review Reasonable expectations: 10 Johnson v. United Investors Life Ins. Co. Gerhardt v. Continental Ins. Co. VIII. Unconscionability and related doctrines Incapacity, duress, and und ue influence: Post v. Jones Unconscionability: Williams v. Walker-Thomas Furniture Co. Henn ingsen v. Bloom field Mo tors UCC 2-302 Toker v. Westerman Exculpatory clauses: Weaver v. American Oil Co. UCC §2-316 UCC §2-719 11