Contracts 1 Professor Jason Yackee Fall 2015 Day/Time: M & W 4:35-6:35 Room: 2225 Email: jyackee@wisc.edu Office #: 7106 Office hours: Tuesday, 9:00-11:00 or by appointment Course Summary This course offers a first-semester introduction to contract law, mostly from a common-law perspective. We cover issues of contract formation, contract enforcement, contract interpretation, excuses or defenses for breach, and contract damages (remedies). Text Required Casebook: MURRAY, CONTRACTS: CASES AND MATERIALS (7th ed. 2015) (Lexis). I recommend purchasing the less expensive loose-leaf version. There is a more expensive hard cover version available from Lexis as well, and there is also an electronic edition. You will also find it helpful to purchase a “document supplement” that provides excerpts of the key formal sources of contract law (the Article 2 of the Uniform Commercial Code, or UCC, and the Restatement (2nd) of Contracts). I recommend the following document supplement: Contract Law and Theory: Selected Provisions: Restatement of Contracts and Uniform Commercial Code (2013) by Robert E. Scott and Jody S. Kraus (LexisNexis). Please note: it is perfectly fine to purchase the 2007 version of the supplement if it is cheaper. Evaluation Your grade will depend entirely upon a closed-book end-of-semester exam, though I may make a handful of adjustments in final grades based upon outstanding class participation. I will not lower grades for poor participation. We will talk more about the exam in class. Class Participation I do not keep formal track of class participation. However, I do call on students sometimes (“cold calling”). If you don’t know how to respond to a question, try your best, and if you are really stuck, just tell me and we will move on. Your inability to respond to questions will not impact your grade. However, a willingness to try your best to participate helps make the class more rewarding and interesting for everyone. It also helps you to become more confident and accomplished in discussing and arguing about law in public (a useful skill for a lawyer). Reasonable Accommodation Policy The Law School complies with federal and state law related to students with disabilities. If you need an accommodation, please talk with Mike Hall, Director of Student Life. Attendance The ABA requires you to attend class regularly. Excessive absences may result in a reduction in your grade or a grade of “F” or other consequences. On the other hand, there is no need to notify me in advance (or after the fact) if you occasionally need to miss a class for personal reasons (though you can notify me if you wish). Office Hours Send me an email if you would like to talk in person, and we will set up a time to meet. Or stop by during office hours without setting up an appointment. Assignments You should read the assignments prior to class, as much as possible. Thinking about the readings is also helpful, but not required. Your small section professor may explain the notion of “outlining” to you. You may find outlining helpful for this course. Some days you will find “problems” listed on the syllabus. The day before a particular problem is assigned, I may ask one or more students in the class to prepare an oral and/or written response to the problem, and/or to be especially ready to discuss the problem in class the next day. Or we might take time in class to work in small groups on the problems. These assignments are not graded. We will not do all of the listed problems. Please note that the course schedule is subject to change depending on how quickly or slowly we move through the various topics. Course Schedule 1 2 Day Date WED. 9/2 2nd hour MON. 9/7 2nd hour 3 WED. 9/9 2nd hour 4 MON. 9/14 5 2nd hour WED. 9/16 2nd hour Subject Intro to course Intro to remedies 1: expectation Intro to remedies 2: reliance & restitution Intro to validation process Formation: Objective Theory Formation: Interpreting Statements Contemplation of a final Writing Missing terms Negotiations vs. Offers Negotiations vs. offers Murray page # 1-11 11-23 Security Stove (handout); Matheson v. Smiley (hand-out) 25-37 Leonard v. Pepsico (handout); 39-44 44-54 Cases Huntington Beach; Freund Security; Matheson Harris; Miles Homes; Harrington Lucy; Leonard Balfour; Gault; Venture 54-60 Arnold Palmer 60-64 64-73 Arbitron Southworth 73-82 Zanakis-Pico; Maryland Supreme; Interstate Industries BC Tire; Synnex Starlite; Vaskie; Caldwell Chaplin; Farley; Dickinson; Ardente 6 MON. 9/21 2nd hour Offeror vs. Offeree Duration 82-89 90-97 7 WED. 9/23 Termination & Revocation 98-112 Irrevocable & Firm Offers Intro to Acceptance 118-128 Pavel; Dahl 134-146 Silence & Notice 146-160 Simmons; Carbolic Smoke; Empire Corinthian; Vogt; Petersen ProCD 2nd hour 8 MON. 9/28 2nd hour 9 WED. 9/30 Battle of Forms 10 2nd hour MON. 10/5 2nd hour Same Consideration Consideration 172-175; ProCD v. Zeidenberg (handout) Same 197-205 206-219 11 WED. 10/7 Employment at Will 219-227 Knott; Hamer McKinnon; Schnell; Thomas Fisher; Anderson 2nd hour 12 MON. 10/12 2nd hour 13 WED. 10/14 2nd hour 14 MON. 10/19 15 2nd hour WED. 10/21 2nd hour Recitals & Illusory Promises 227-233; 235-238 Requirement & exclusive dealings Pre-existing legal duty rule Promissory Estoppel Pre-Contractual Reliance; Moral obligation UCC & Statute of Frauds Parol Evidence Rule Parol Evidence & UCC Interpretation 238-242 245-256 266-280 281-288; 292-302 307-312; 326-40 357-366; 371-374 392-402 411-421 16 MON. 10/26 Mistake 426-434; 437-444 17 2nd hour WED. 10/28 Same Fraud & Duty to Disclose Same 450-461 Stambovsky case, 169 A.D.2d 254 (1991); Milliken v. Jacono, 60 A. 3d 133 2012 448-451; 457-468 2nd hour 18 MON. 11/2 2nd hour 19 WED. 11/4 2nd hour Intro to unconscionability Unconscionability Unconscionability & arbitration Illegal Contracts Walker-Thomas, at 350 F.2d 445, and lower court opinion at 198 A.2d 914) 193-195; 474-485 496-508 Same 509-520 20 MON. 11/9 Breach & Materiality 560-572; 575-576 21 2nd hour WED. 11/11 Perfect Tender Rule Impossibility, Impracticality, & Force Majeure 577-588 607-619; 626-632 1464-Eight; Centerville; Vanegas Vulcan; Lady DuffGordon Slattery; De Cicco; Angel Allegheny; Feinberg Pop’s Cones; Passante; In re Hatten’s C.R. Klewin; Azevedo Traudt; Ralph’s Smith; Zemco Frigaliment; Raffles Speckel; Anderson; Lanci; First Baptist; Estate Same Stambovsky; Miliken Magliozzi; Germantown Mfg Walker-Thomas Hill; Circuit City; Quillon U.S. Nursing; Fine Foods; Boisen Wilcox; Metro. Creditors Walker; Assoc. Builders; Jacob & Young; Jackson Ramirez; Flatt Taylor; Transatlantic; No. Indiana 2nd hour 22 MON. 11/16 2nd hour 23 WED. 11/18 2nd hour 24 MON. 11/23 2nd hour * WED. 11/25 25 MON. 11/30 Damages: Expectation Interest & Foreseeability Damages: Tort vs. Contract; Certainty limitation Hadley; Cricket Hairy Hand case: Hawkins v. McGee, 84 N.H. 114, 146 A. 641 (N.H. 1929); 658-661 Same Sullivan v. O’Connor, 363 Mass. 579, 296 N.E.2d 183 (1973) + Danzig chapter Damages: Emotional 662 + Chung 618 P.2D Distress 283 (1980) Damages: Mitigation Parker, 3 Cal.3d 176 (1970) Damages: Lost Neri, 30 N.Y.2d 393; Volume Seller (Michael Jordan case) (provided via email) Damages: 668-677 Liquidation No class: Thanksgiving Break Hawkins; The Drews Co. CBS; Anderson; Estate of Frances Walgreen; Ash Park 26 WED. 12/2 2nd hour Damages: Reliance & Restitution Specific Performance Review Review * MON. 12/14 Final Exam 2nd hour 638-642; 652-656 682-685; 693-700 700-710; Ash Park, 2010 WI 44 Sullivan Chung Parker Neri; In re MCI Lind