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REMEDIES Basic K Damages Expectancy: gains prevented Reliance: losses caused Restitution: restoration of benefit conferred Buyers Damages:

es: K market price C/L: time and place to be delivered (Acme ills! issouri "urnace) #CC $%&'(): Antic* Repu+: co,er or +amages* -iming. #CC $%&/)0: time and place of tender #CC $%&/(%: cover allowed & encouraged! #CC $%&/(1: time buyer learned of breach! #CC $%&/%1: +amages at time learned of repudiation! 2E3 R#LE (Cosden): +amages at comlly reasonable time a4ter learned of repudiation. Construction Contracts cost of completion (pu9lic 9l+g) market value consi+er: proportionate costs: pu9lic interest: unique (7no6n) su9;ecti,e ,alue: 6ill4ul 9reac8 Restatement %+ $1<': dimunition in market value =R reasona9le cost o4 completing per4ormance or reme+ying +e4ects i4 not +isproportionate to loss Groves v. John Wonder (9uil+er re4use+ to le,el lan+) (cost o4 completion) Peevyhouse (=7la8oma stripminers) Laurin (+im* in ,alue ina+equate! ga,e gra,el) Plante v. Jaco s (+iminis8e+ ,alue > clearly separa9le +e4ects) Hawkins (expectancy) Sullivan (reliance) Cotnam v. Wisdom (quantum meruit)

Acme Mills (+amages 5 )) Missouri Furnace (co,er at your o6n ris7 68en installment K)

liqui+ate+ +amages

Restatement %+ $1?'

#CC $%&/(0

City o! "ye (not en4orcea9le)

2= penalty must relate to actual damages anticipated/anticipatable pro9a9le 8arm

LD only in amt reasona9le: anticipated =R actual loss A2D diff. of proof of loss

REMEDIES same as restatement > @inconvenience or nonfeasibility of otherwise obtaining an adequate remedyA

#ockey (sleaBy no la6suit agt) Muldoon (no intl penalty) Grenier (engineer letter: LD 8a+ @penalA 9ut not a penalty clause! +amages escalate+ 9ut not penalty! B#- coul+ not create matl 9reac8) "ockin$ham County (9ri+ge) %un$e: cant run up +amages in 9a+ 4ait8 (p* <C C3) Lein$an$ (su9tract ,aria9le costs) &ersar$e (exp* capacity 5 no ,ar* costs)

ex ante ,* ex post perspecti,e policy o4 encouraging 9etting mitigation +uty to ta7e ordinary prudent action construction 5 stop per4orming 68en 9reac8 (get costs > exp* pro4it) employment 5 compara9le employment 2atural an+ Consequentials arise naturally (incidentals) special circumstances (7no6n E communicate+) Restatement %+ $1?( () reas <ca9le as probable consequences! %) <ca9le i4: arises in: or+inary course o4 e,ents! specl circumstances reqr reas to 7no6 1) court may limit damages as justice requires #CC $%&/(? (Buyers) () inci+entals %) consequentials F reason to 7no6/coul+ not reas* 9e pre,ente+ t8roug8 co,er or ot8er6ise (Gers* E prop* in;ury)

Parker (D8irley cLaine) Hadley (mill part 9ro7e) 'ictoria Laundry (reas <ca9le 9ut not unusually lucrati,e Ks) Lamkins (tactit agt: tractor)

2e6 Business Rule C/L no proof no damages 9ut 2=- an a9solute rule reliance may 9e an alternati,e reliance $C) F +amages !"#$ %& '(")"!% *!+,-%*#" $ (1C: can 9e limited as necy to pre,ent in;ustice! allo6s estoppel 4or plea+ing D="

#CC $%&/)0 sellers +amages: 2ot necy to a reco,ery to s8o6 a 8istory o4 earnings: i4 ne6 ,enture in,ol,e+*

Freund (9oo7 +eal) Fera (9oo7 an+ 9ottle s8op: got reco,ery) (em)sey (lost pro4its too speculati,e) Ho!!man v. "ed *wl (no lost pro4its) (em)sey (lost pro4its too speculati,e) Geremias (insurance 5 reliance plus) Al ert and Son (33HH ru99er)

REMEDIES usually not expectancy (9ut see Geremia+ $1<C: expen+itures ma+e in preparation of performance less any loss 6oul+ 8a,e su44ere+ i4 K per4+! & can 9e essential or inci+ental & 9ur+en on 9reac8ing party to s8o6 ot8ers losses

Dellers Damages consi+er: ine.haustible supply (lost ,olume seller) ,s* lack of capacity Hadley issue: 68o 8as 9etter grip on costs o4 9reac8.

REMEDIES #CC $%&/)0 () K market price at time an+ place o4 ten+er: plus inci+entals: minus sa,ings L!S" #!L$ME SELLER %) #2LEDD: @inadequate to put seller in as goo+ a position as per4ormance 6oul+ 8a,e +oneA: t8en: %rofit &incl reas overhead) 4rom 4ull per4ormance: plus inci+entals o44set 9y costs E cre+its not necy to s8o6 a 8istory o4 earnings: esp* i4 ne6 ,enture* #CC $%&/(': 9uyer E spec per4 unique chattels ot8er proper circumstances (damages diff to calculate not remediable)

,eri (Retail arine: loss o4 ( gross margin)*

Dpeci4ic Ger4ormance personal services 5 +i44icult (9ut neg in;unction may 9e appropriate) 68en no ec. substitute avail* extraor+inary needs taken into account (no co,er) presumption w/land (9ut not +ispositi,e) (Dee Ian 3ag) not when damages adequate cant stip* in K 9ut is e,i+ence in;unction easier to get 4or HG unusual reme+ies: constructi,e trust 8ol+ property in trust (equita9le reme+y) 9uyer or+ere+ to per4orm vendors lien: 9uyer 8a+ +uty to resell to 1+ party (*s orne)

'an Wa$ner (9ill9oar+! no DG) Curtice %ros (tomatoes! DG) Manchester (airy (+airy coop: in;*) Sun v. Microso!t (HG presume+ unique)

%racken ury v. Hod$kin (mean mom F constructi,e trust) *s orne (G8D rip o44)

C/L a+8esi,e contract may 9e unconscionable am9iguity latent ,s* patent @meeting of mindsA req+ omniscent 1+ party +etermines intent reme+y 5 ,oi+ E restitution

Restatement

'!RM("I!) I) *E)ER(L &+Mutual (ssent,#CC

Cases

Rest* $%) () 2o K i4 parties attach materially diff meanings A2D: a) neither 7no6s/reason to 7no6 meaning o4 ot8er party! 9) each %arty 7no6s/reason to 7no6 ot8ers meaning /0 innocent partys meaning

"a!!les ( @GeerlessA)

+isclaimer E o9;ecti,e intent @4or persons untutore+ in K la6: clarity is essentialA ( cDonal+)

Restatement %+ $%( @mani4estation o4 intention t8at a promise s8all not a44ect legal relations may pre,ent 4ormationA

Mc(onald v. Mo il Coal (employee 8an+9oo7 create+ K 9/c +isclaimer so inconspicuous it 6as li7e a su9;ecti,e reser,ation ) Mundy (limite+ lia9ility 4or prop t8e4t up8el+) Weis- (AD HD +isclaimer) "ichards (tort car case: not a+equately 9argaine+ o,er)

4orm contracts @e,en a casual reading would sufficeA ( un+y)! stan+ar+ is average reader signposting require+ reasonable e.pectations t8e rule dickered deal ,s* supplementary boiler plate (Lle6ellyn) gap&4illers t8e more terms left open t8e less li7ely a K F 9ut courts 6ill

Rest* %+ $%((: 7no6 genlly applica9le 4orm K! interprete+ as treating t8ose similarly situate+ ali7e B#- i4 one party reas to 9elie,e ot8er party 6oul+ not 8a,e agree+ F t8eres an out*

price 5 reas price at time o4 +eli,ery ( $%&1)?)

up8ol+ 9asic agt* o4 parties: an+ 4in+ terms implie+ i4 not express*

'!RM("I!) I) *E)ER(L &+Mutual (ssent,place 1 sellers place of business ($%& 1)0) time 4or s8ipment 5 reas. time after K ($%&1)C) time for payment 5 $%&1()

general mutual assent objective intent - su9;* intent is e,i+ence (Ka9il F 8eli)

general $11: +e4inite $11 (%): +e4inite if reas basis for remedy E ct. can determine breach2 $11 (1): 4act terms are left open may s8o6 lac7 o4 intent to K $%) F o9;ecti,e: reasonable intent (not su9;ecti,e) $%< F creates po6er o4 acceptance

$%&%)< "ormation: @may 9e ma+e in manner sufficient to show agreement: H2CL#DH2J conduct 9y 9ot8 parties 68ic8 recogniBes existence o4 KA $%&%)< (1): t8e parties intended to make a K an+ t8ere is a reasonably certain basis for giving an appropriate remedy

&a il (o9;ecti,e mani4* o4 assent F su9;* testimony goes to o9;* intent) Hotchkiss (1+ party omniscent)

K +oes not 8a,e to 9e in 6riting unless t8e 6riting is a con+n prece+ent letter of intent K en4orcea9le i4 it s8o6s t8at t8e 4inal K 6oul+ 8a,e 9een a memorial o4 an agt* alrea+y reac8e+ (Empro) o44er o4 re6ar+ claimant must 8a,e knowledge of offer an+ act w/intent of accepting 68en ren+ering per4ormance .m)ro v. %all M!$ (letter o4 intent not en4orcea9le 9/c contingent on completion o4 +e4inite agt)

'!RM("I!) I) *E)ER(L &+Mutual (ssent, i4 go,t entity o44ers a re6ar+: +oesnt matter 68et8er t8ey 7ne6 (Dee #nilateral K: $<?) #CC $%&%)?: 4irm o44er irre,oca9le i4 merc8ant: sale o4 goo+s: an+ assurance not to re,o7e is in 6riting Cochran (option L 6as M( an+ ne,er gi,en F 9ut 6as still L)

option K o44er becomes irrevocable through 3 @4ictionalA option K (restatement: see unilateral K)! mail9ox rule +oes not apply option K sometimes assigna9le: may create a property rig8t outputs E requirements contracts C/L: unen4orcea9le: no L* (2ot no6)* precontractual o9ligation su9&contractor bid can become binding offer ((rennan) t8roug8 reliance 6/out L K exception to mutuality rule pre&contractual negotiations can create reliance (Ho!!man) $C) unilateral contracts: i4 an+ 68en acceptance by performance! consi+eration 5 act! ol+ rule 5 re,ocation until K complete! mo+* rule 5 not revocable after performance began B#separate out @preparing to per4ormA

#CC $%&1)': =utput: Requirements E Exclusi,e Dealings

,at ,al

(rennan v. Star Pavin$ (clerical error) Ho!!man v. "ed *wl (contrast 6it8 .m)ro E (rennan)

Restatement $1%: o44er is interprete+ as in,iting o44eree to accept 9y promise or per4ormance: as o44eree c8ooses Rest $<? (option K) option K create+ 68en o44eree 9egins in,ite+ per4ormance! o44erors +uty o4 per4ormance is con+l on completion o4 t8e

#CC $%&%)' @in,ites acceptance in any manner reasona9le*A

%racken ury v. Hod$kin (+aug8ter E son 6ent to ta7e care o4 mom 5 en4orcea9le unilateral K) (avis v. Jaco y (suici+al man as7e+ 4or promise) F presumption o4 9ilateral

'!RM("I!) I) *E)ER(L &+Mutual (ssent,per4ormance! Ncontract 7ept open 68en o44eree 9egins per4ormance: 9ut o44eror +oesnt 8a,e to per4orm until its complete+O

I)"ER.RE"("I!) 4our&corner ,s* contextual to up8ol+ 9asic agt* o4 t8e parties oral evidence always available to interpret a +ocument: t8oug8 inadmisssable if completely integrated! i4 agt am9iguous: parol e,i+ence to clarify intent! parol e,i+ence a+missa9le to s8o6 special usage in the trade! $(&%)?: also uses: in or+er: as 9asis 4or interpretation: () e.press terms! usage of trade! course of dealing Jose)h Martin (eli (rene6al term +i+ not contain 4ormula 4or +etermining rent: agt to agree not en4orc*) May v. May *il %urner Cor). 01meaning o4 agt o4 t8e parties is to 9e +etermine+ 9y t8e language t8ey use an+ t8eir actions: rea+ E interprete+ in lig8t o4 commercial practices an+ ot8er surroun+ing circumstancesA) PG / . (-raynor: totality o4 circumstances) @reasona9ly suscepti9leA Lansin$ (4our&corners)

course o4 +ealing (can gi,e meaning)

!''ER +!b/ective intent, C/L +istinguis8 =""ER 4rom ad & invitation to deal Restatement general $11: definite $11 (%): +e4inite i4 reas basis for remedy E ct* can +etermine 9reac8! $11 (1): 4act terms are left open may show lack of intent to K $%) F objective4 reasonable intent (not su9;ecti,e) $%< F creates power of acceptance o44eror is master of the offer (+etermines) substance o4 exc8ange: i+entity o4 o44eree %rocedure: i+enti4ies time: place: mo+e o4 acceptance o44er ,s* a+ language lac7 o4 quantity not speci4ically a++resse+ (eg: 4irst come 4irst ser,e+ 5 4irst K) may9e not a price i+enti4y reme+ies o44er le4t open 9y mista7e reasonable 4or o44eree to t8in7 it 6as still goo+. Le!kowit- (unusual F coats) #CC co,ere+ 9y 4ormation: $%&%)< $%&%)< "ormation: @may 9e ma+e in manner sufficient to show agreement: H2CL#DH2J conduct 9y 9ot8 parties 68ic8 recogniBes existence o4 KA $%&%)< (1): t8e parties intended to make a K an+ t8ere is a reasonably certain basis for giving an appropriate remedy Shar) ((C1C) (@o44er 68ic8 may 9e sign* is also a promise*A) Cases Moulton v. &ershaw (lac7e+ quantity! in,itation)! (Dalt)

Co au$h

!''ER +!b/ective intent, time limit on reasona9le 9elie4 C!)D$C" C!)CL$DI)* ( 0(R*(I) agreement up 4ront F +etaile+ agreement to 4ollo6 (68en t8eres an out) ProC( v. 2eiden er$ (s8rin76rap +i+ a+8ere F 2=- $%&%)/) Hill v. Gateway (terms 9in+ing a4ter purc8ase 9/c coul+ return F 2=- $%& %)/) (co+i4ie+ in #CH-A $%&%)C) Livin$stone v. .vans (o44er E resuscitation F lan+! C/L) 3daho Power (pro,iso +i+ not apply to @superse+es all pre,ious agreementsA) Ste)4Saver v. Wyse ($%&%)/: 9ox&top 6as material alteration)

C/L: mirror image rule C/L4 last shot rule o+ern rule: more fle1ible loo7 to con+uct (Ko9e Bryant)

#CC $%&%)<: "ormation: in any manner sufft to show agreement (all gap&4illers) $CC 234356 0attle of the 'orms %) pro,iso (e.plicit & precise) 1) a++l terms. btwn merchants 5 K #2LEDD: a) my terms only in o44er 9) matlly alter it =R c) notification of objection 6/in reasona9le time <) conduct is sufficient to esta9lis8 K* (terms t8at 6ritings agree > gap 4illers) +i44 terms 5 7noc7 out a++l terms 5 proposal: in 9t6n merc8ants: or 4all out un+er #2LEDD

general (unilateral or 9ilateral)

Rest* $1%: o44er is interprete+ as in,iting o44eree to accept by promise or performance as offeree chooses

#CC $%&%)' @in,ites acceptance in any manner reasonable.5

(avis v. Jaco y4 presumption of bilateral (suici+al)

C!)D$C" C!)CL$DI)* ( 0(R*(I) ail9ox rule Rest %+*$ '1 acceptance valid when sent 9ut option K valid when recd (option K o4ten limite+ time) #CH-A $%)1&< F e6mail when recd #CC $(&%)(: o44er can 9e accepte+ 9y any reas means! i4 unreas: still ,ali+ 68en +ispatc8e+ i4 rec+ no later t8an reas means

termination o4 po6er o4 acceptance

Rest* %+ $1' re,ocation re;ection or counter&o44er lapse o4 time +eat8 or incapacity (9ut option K may 9e 9in+ing on +ece+ents estate) non&occurrence o4 con+n o4 acceptance

#nsolicite+ merc8an+ise usually a gi4t: 9y statute

C!)SIDER("I!) C/L agreement to agree agreement to agree not 9y itsel4 en4orcea9le course o4 +ealing can gi,e meaning to terms Restatement/#CC $(&%)?: annual rene6als mig8t ripen into a course o4 +ealings 9y 68ic8 it mig8t 9e possi9le to gi,e meaning to an ot8er6ise uncertain term* Cases Jose)h Martin (eli (rene6al term +i+ not contain 4ormula 4or +etermining rent: agt to agree not en4orc*) & May v. May *il %urner Cor)* (@meaning o4 agt o4 t8e parties is to 9e +etermine+ 9y t8e language t8ey use an+ t8eir actions: rea+ E interprete+ in lig8t o4 commercial practices an+ ot8er surroun+ing circumstancesA)

em%loyment 7 reliance reliance +oes not su9stitute 4or L: must 9e some 9ene4it to emp: +etriment not enoug8 ("orrer) reliance not out o4 D=" (Dtearns) reliance estops D=" E +amages =K (Seymour5 Ca)tain o! (etectives+ en4orcea9le promises ,s* unen4orcea9le +onati,e promises illlusory promises gratuitous promises reliance general mutually interlocking obligations - +etriment/9ene4it - 9argaine+ 4or exc8ange 4ore9earance o4 a legal rig8t (Pamer) mere ina+equacy o4 L 2=- a +e4ense 9ut: nominal not enoug8 (D8nell) $$/(: /% $/(((): must be bargained for2 $/((%): 9argain 5 sought for in e.change! $ /((1): per4ormance a) an act ot8er t8an a promise 9) a forebearance c0 creation modification or destruction of a legal relation &adimah v. (eLeo (i4 in 6riting: 6oul+ 8a,e 9een en4orcea9le)

Hamer (9asic principle) (2ep8e6) Alle$heny (4lexi9le: non&gi4t: 9in+ing) Fischer (nominal F lo,e not enu4) (retarte+ +aug8ter) Schnell v. ,ell (( L inten+e+ nominal) %atsakis (mere ina+equacy F Jree7)

C!)SIDER("I!) illusory promises @*ll do it if * want toA mutuality principle: 9ot8 parties must 9e 9oun+ or neit8er 6ill 9e 9oun+* $// are 2=- consi+eration i4 choice o4 alt per4* unless: a) eac8 is L 9) =ne i4 L an+ su9stantial possi9ility ot8er alternati,es 6ill 9e eliminate+ see also: $%&1)' (implie+ promise) $%&1)C: Successive .erformances: in+e4inite Ks are valid for a reasonable time! 9ut can 9e terminate+ at any time unless ot8er6ise in K* implie+ promise @instinct 6it8 an o9ligation: imper4ectly expresse+A $%&1)' requires 9est e44orts rat8er t8an reasona9le e44orts: 68en an exclusi,e +ealing: output: requirements Wood v. Lucy5 Lady (u!! (reas* e44orts implie+) (avis v. Gen. Foods (illusory promise F recipe) ,at. ,al* (rolling o44er an+ acceptance pro,i+e+ terms 4or illusory contracts) 'ranchise dealings: term coul+ 9e termination 6it8 () +ays notice (Corenswet) (see p*(< C3: p %( "R)

implie+ promise in la6 4or non6prof. volunteer )! nee+ 4or su9sequent agt* entitle+ to restitution 4or per4ormance legal +uty rule promise to per4orm an act t8at t8e promisor 8as a pre&existing legal +uty to per4orm is 2=consi+eration e,en i4 9argaine+ 4or! can still re+uce +e9ts 9y agreeing to +o somet8ing you are not legally 9oun+ to +o (hawk horse robe)

Cotnam v. Wisdom (+octor 8elping patient entitle+ to 4*m*,*)

C!)SIDER("I!) promises 9ase+ on past contracts D=L 9an7ruptcy minors &Q courts 6ill en4orce 6/out ne6 L promises groun+e+ in t8e past moral +uty 2=- nec* en4orcea9le $$ 0% an+ 01 promises to pay 9arre+ +e9t enforceable without 3 9an7ruptcy must 9e e.press promise Rest* %+ $0' Mills v. Wyman (no L 4or sic7 son)! ne6 promise 4or 9ene4it pre,iously rec+ 9in+ing to e.tent necy to prevent injustice B#- 2=-: i4 a gi4t: or ,alue +isproportionate to 9ene4it reliance can substitute for 3 can 9e use+ to support 3 (Alleg8eny: Jeremia) can 9e ta7en out o4 statute o4 4rau+s (unless employment: see 9elo6) () e.pect to induce %) does induce 1) injustice cannot be avoided Rest* $(1C promise is enforceable des%ite S!' $/< honest &( reasonable belief claim is in fact doubtful 4ore9earing party believes lawsuit may be successful execution o4 a written instrument is consi+eration e,en i4 t8e party asserting t8e claim 9elie,es in,ali+* Rest* $C) reasonable detrimental reliance "icketts (quit ;o9) (yes L) &irksey (tra+l: no L 4or 6oman 68om mo,e+ to li,e 6/9rot8er in la6) We v. McGowan (L @su++en tort li7e KA)

settlement o4 a +ispute+ claim unenforceable claim !&% 3 (Duncan F s8arecroppers) @you can ma7e a mountain out o4 a mole8ill 9ut not a mole8ill out o4 not8ing*A 9ut: postponement o4 la6suit is ( ilitary College)

(uncan v. %lack

.(R!L E#IDE)CE R$LE %olicy %revent fraudulent undermining of written agreement8 and u%hold what %arties I) '(C" agreed to9 9asic parol e,i+ence rule: Rest $%(1 Hatley (relaxe+ parol e,i+ence: rea+ in a time&limit on 9uy&out clause) 68en an agt 8as 9een reduced to 9in+ing int* agt* +isc8arges writing t8at parties intend to be inconsistent prior agts! Mitchell (strict: ice 8ouse) their final agt: e,i+ence o4 addl 9in+ing completely integrate+ agt previous !&% admissable to +isc8arges agts* 6/in its scope* vary terms consistent a++l terms Rest* $%(' agt not completely integrate+ i4 it omits consistent addl agreed term which is4 agree+ to 4or separate consi+eration! suc8 a term as in t8e circumstances mig8t naturally 9e omitte+ 4rom t8e 6riting* consi+er @in lig8t o4 all t8e circumstancesA

integrate+ 6riting

parol term a+missa9le. 70 collateral %) +oes not contradict e.press or implied 1) not ordinarily e.pressed in 6riting

Rest $%)C K6riting is 4inal expression o4 one or more terms! judge decides 68et8er integrate+ 9e4ore +etermining parol e,i+ence! %resum%tion: @face of the instrument5 (t8en a++l e,i+*) Rest $%(1: 9in+ing integrate+ agt* +isc8arges prior agts to t8e extent it is inconsistent2 9in+ing +isc8arges agts w/in its scope

#CC $%&%)%: 6ritten terms may not 9e contra+icte+ 9y e,i+ence o4 prior/contemporaneous agt* B#- may 9e explaine+ or supplemente+: a) course o4 +ealing or usage o4 tra+e 9) e,i+ence o4 consistent a++l term

.(R!L E#IDE)CE R$LE %olicy %revent fraudulent undermining of written agreement8 and u%hold what %arties I) '(C" agreed to9 Rest $%(<: EIHDE2CE o4 prior or unless 6riting is completely contemporaneous agts E negotiations integrate+ 5 admissable KK course o4 per4ormance 5 9est in+ication o4 68at K means 6riting is not integrated! integrate+ agt* is completely or See also $(&%)?* partially integrated! to show meaning 68et8er or not $(&%)?: also uses: in or+er: as 9asis integrate+! 4or interpretation: illegality fraud duress mistake e.press terms! duress lack of 3 or other usage of trade! invalidating cause! course of dealing groun+ for recission8 reformation8 s%ec9 %erformance8 or other remedy9

M!DI'IC("I!)/)!#("I!)/:(I#ER 7 RELE(SE &Revisions of Contractual DutyC/L Accor+ E Datis4action unliqui+ate+ 9ona 4i+e ten+ere+ 4or entire +ispute Restatement #CC #CC $(&%)/: (per4ormance 68ile reser,ing rig8ts +oesnt apply to A E D) #CC $1&1(( +isc8arge an existing +ispute+ claim (4or less t8an 4ull amt): () goo+ 4ait8: conspicuously stating to terminate+! %) 9ona 4i+e +ispute 1) cas8e+ Executory Accor+ (c6: p <?) C/L: no e44ect mo+ern rule: in e44ect 68en in 6riting E signe+ lots o4 exceptions: i4 9reac8e+: t8en ot8er party may reinstate original claim mo+i4ication o4 a K nee+s a++l consi+eration to 9e 9in+ing legal +uty rule in mo+* context L req+ to 4orm K an+ escape 4rom unper4orme+ K! K cannot 9e mo+i4ie+ 6/out L (except $%&%)C)! K +uty o6e+ is 2=- L 4or ne6 promise 9y party (Le,ine)! t8reatene+ 9reac8 2ot nec* +uress! or+inary +e4ense to Ks are Restatement %+ $/0(: until per4ormance o4 accor+: org* +uty suspen+e+ unless t8ere is 9reac8: 68ic8 may +isc8arge +uty to accept in satis4action Cases Marton "emodelin$ (@ol+ c8ec7 tric7A: 6or7e+ +espite 6or+s o4 reser,ation) School Lines (+i+nt 6or7 F no 9ona 4i+e +ispute: liqui+ate+)

$%&%)C: () mo+i4ication nee+s no L %) no oral mo+s clause must 9e signe+ 9y ot8er party (an+ t8en is ,ali+) 1) D=" satis4ie+ i4 mo+ 6/in it! <) else: can 9e a 6ai,er ?) 6ai,er can 9e retracte+ 6/reas notice unless un;ust 9/c matl reliance

Levine (+epression lease & legal +uty rule +i+ not allo6 mo+) Alaska Packers (ec* +uress) Austin 3nstruments (ec* +uress)

M!DI'IC("I!)/)!#("I!)/:(I#ER 7 RELE(SE &Revisions of Contractual Duty+e4enses to mo+s as 6ell 2on&6ai,ea9le con+itions cant 6ai,e sel4 into promise 4or a gi4t 2o,ation: parties can rescin+ a K 9y mutual assent: ne6 promises are L 4or eac8 ot8er: - no +uress - clear in+ication o4 intent Release genl release can preclu+e a44irmati,e +e4enses! i4 9ase+ on current issues genl release 4or 4uture claims may 9e too 9roa+ analyBe un+er A E D: also un+er settlement o4 +ou9t4ul claim t8eories to support su9sequent oral agreements (68en no oral mo+ clause): () estoppel %) oral no,ation E su9stitution 1) recission o4 6ritten agt 9y an oral agt <) 6ai,er o4 a pro,ision o4 a 6ritten K ?) oral in+epen+ent collateral K

Restatement $0C: mo+ 9in+ing i4 a) 4air an+ equita9le: circum not anticipate+ 9) statute allo6s c) ;ustice reqrs/reliance

Schwart-reich (@tore up KA)

"ichards (too 9roa+ E 4uture claims 5 in,ali+) Pickwick (,i+eo)

M!DI'IC("I!)/)!#("I!)/:(I#ER 7 RELE(SE &Revisions of Contractual Duty3ai,er ,s* mo+i4ication 6ai,er 5 one time relinquis8ment! mo+ 5 permanent c8ange 3ai,er: promises to ren+er per4ormance! e,en t8oug8 con+n not occurre+ equita9le concerns (i4 en4orcing 6oul+ result in 4rau+) 3ai,er: no oral mo+i4ication clause or: con+n o4 6riting 6ai,e+ Restatement $%%< 6ai,e+ i4 gi,en () 68en not moot %) in reliance: matl c8ange "aile+ mo+i4ication can 9e a 6ai,er: Dee $%&%)C (<)* Geremia (ins* company 6ai,e+ rig8t to en4orce K)

6niversal %uilders v. Moon Motor Lod$e (stoo+ 9y E 6atc8 5 lia9le)

P."F*"MA,C. / C*,S7"6C73'. C*,(373*,S 0See also8 Modi!ication+ Constructi,e Con+itions (* mutual and independent: can reco,er 4or 9reac8! 9ut not an excuse 4or non&per4ormance (Howard+! dependent & conditional: +isc8arges ot8er party till per4orme+* must 9e: essence i4 not express* (&in$ston)* simultaneous conditions4 68oe,er 8as complie+ can 9ring action 4or +e4ault* Rest $%1<: () presumption of simultaneity* Rest $%10 () i4 simultaneous: both sides have to be ready to %erform to give rise to a breach9 Cohen (lan+ title cura9le: guesse+ 6rong E 9reac8e+)! Ansor$e (lan+ title totally incura9le +i+ equal ma;or 9reac8 o4 constructi,e con+n)* Ca)orale (coul+nt sue 4or 9reac8 unless a9le to ten+er: 9ut +isc8arge+) &in$ston (sil7 ser,ant F security a con+n prece+ent)

%*

1*

+etermine 4rom intent o4 parties* la6 can imply a con+n* Deparate constructi,e con+n 4rom minor co,enant: Cohen* ot8er party +oesnt per4orm constructive cond9n: you are +isc8arge+ 9ut i4 you guess 6rong an+ +ont per4orm yoursel4: you are in 9reac8 practical e44ect: s8o6 up an+ 9e rea+y to per4orm i4 you 6ant to en4orce K* Disc8arge ,s* +amages (Ca)orale) i4 ot8er party cant per4orm: you can 9e +isc8arge+ (i4 its a constructive condition)* i4 you cant per4orm: you cant get +amages (no C=A 4or 9reac8)

P."F*"MA,C. / C*,S7"6C73'. C*,(373*,S 0See also8 Modi!ication+ Cure: Acceptance: Re,ocation: Re;ection C/L: perfect tender rule no6: more 4lexi9le: esp* in goo+s* "ailure o4 t8e ot8er party to 9e rea+y: 6illing E a9le to per4orm +oes 2=- let you o44 t8e 8oo7 Cure earne+: not a rig8t*
C$RE $%&?)0: goo+s may 9e essence o4 t8e +eal 9ut parties may still 9e on t8e 8oo7 4or C#RE* () seller can cure i4 time for performance not exp+ an+ seasonably notify 9uyer e.tension of time poss* i4 seller 8as reasonable grounds to 9elie,e goo+s accepta9le*

%artus (8earing ai+) Cohen (+e4ecti,e title coul+ 9e cure+)

%)

0$;ER<s RI*="S $%&')(: i4 not per4ect 9uyer can re;ect* $%&')%: Re;ection in reasonable time 4or any non&con4ormance* $%&')?: (=pp to cure)* 89*)"( o4 9uyers o9;ection by :9*;,(" to particulari<e. () 9uyer preclu+e+ 4rom relying on +e4ect to ;usti4y re;ection or esta9lis8 9reac8: a) 9) 68ere seller coul+ 8a,e cure+ i4 state+ seasona9ly! 9t6n merc8ants 68en seller ma+e request in 6riting 4or list o4 +e4ects*

$%&')0: Re,ocation: a4ter acceptance: only 68en substantially non6 conforming4 a) on reas assumption t8at +e4ects 6oul+ 9e cured! 9) i4 non&con4ormity not +isco,ere+ 4or reasonable reasons: 6/in reasonable time*

P."F*"MA,C. / C*,S7"6C73'. C*,(373*,S 0See also8 Modi!ication+ Estoppel misrepresentation detrimental reliance 5 +isc8arge Express Con+itions ,s* Co,enant i4 forfeiture: can lea+ to +isc8arge 9ut +oes not ,oi+ K (4or +amages: analyBe reach)* "or4eiting your rig8t to en4orce K against ot8er party* contrast +isc8arge 6/unilateral K 68ere no K 4orme+ i4 con+n not met! genl policy =GG=DED to 4or4eitures Co,enant ,s* Con+ition @mere co,enantA 5 +amages associate+ 6/co,enant 9reac8e+ ,s* con+n 5 4or4eiture (Sun: Howard)! Joo+ 4ait8

$%'(: @term speci4ies somet8ing to 9e +one or not +one! promise is create+* pro,ision re4ers to a situation: con+ is create+*A

Howard (to9acco F pre4 4or co,enant) "oyal Glo e (8it&an+&run) Fidelity4Pheni: (@4urt8er 6arrantsA 5 con+t prece+ent)

$(&%)1: =9ligation o4 goo+ 4ait8 note parties can K to +etermine stan+ar+s o4 per4ormance so long as not mani4estly unreasona9ale goo+ 4ait8 5 commercially reasonable

aterial ,s* inor Breac8 material 5 8a,e rt to stop per4orming! minor 5 continue per4orming an+ see7 reme+y in o44set E +amages

P."F*"MA,C. / C*,S7"6C73'. C*,(373*,S 0See also8 Modi!ication+ Rest* $%/? 4actors:


extent per4orme+ 6ill4ul 9reac8 (repu+iation 5 matl) uncertainty o4 4uture per4ormance extent o4 9ene4it o9taine+ extent a+equately compensate+ +egree o4 8ar+s8ip on 9reac8ing party parties agt ma7e somet8ing a matl 9reac8

Re,i,ing a Con+n a4ter 3ai,er temporary

$%&%)C can rescin+ 6/reas notice i4 no detrimental reliance/in;ustice* Groves v. John Wonder 5 no su9stantial per4ormance 68en 4rau+ an+ 6ill4ul 9reac8 (cost o4 completion) Plante v. Jaco s (+iminis8e+ ,alue 4or mis&constructe+ 8ouse > clear sepn o4 +e4ects) Jaco / #oun$ (6rong pipes)

Du9stantial Ger4ormance +etermines ma;or ,s* minor 9reac8! construction 5 no structural defects or workmanlike per4ormance! su9stantial per4ormance 5 no +isc8arge! i4 9reac8 is unintentional an+ trivial 5 su9stantial per4ormance (Jaco / #oun$)! consi+er express con+ns to +e4ine su9stantial per4ormance

3ai,er ,ol* E intentional relinquishment o4 known right Ntypically: in,ites reliance F 9ut reliance can 9e as little as K still existsO* 5 +isc8arge ol+ rule (Clark) 5 express 6ai,er req+*

P."F*"MA,C. / C*,S7"6C73'. C*,(373*,S 0See also8 Modi!ication+ $%&%)0: #ourse of performance can s8o6 6ai,er or mo+i4ication* Dometimes a course o4 per4ormance can ma7e a waiver mature into mod* Gre4 4or 6ai,er i4 unclear (up8ol+ expectations)* Course o4 per4 trumps course o4 +ealing*

Clark v. West (+run7 la6 pro4essor) "oyal4Glo e (insurance & no 6ai,er)

3arranties

$%&1(1: ".press: part o4 t8e basis of the bargain! @mere pu44ery is not enoug8A! $%&1(<: *mplied 6arranty o4 merc8anta9ility: fair average quality* $%&1(?: *mplied 6arranty o4 fitness for a particular purpose* Deller must 7no6 or 8a,e reason to 7no6! 9uyer must rely* $%&1(': =*-#;9*>"(-: AD HD pro9a9ly enoug8* B#-: $%&1(? fitness for a %articular %ur%ose must 9e in writing: E conspicuous* Merchantability +oes 2=- 8a,e to 9e in 6riting: 9ut must 9e spec* mentione+* $%&1(/: Consistency: interpret 6arranties as not con4licting* 3arranties can 9e cumulati,e*

,eilson (so4t6are 4or

D)

P."F*"MA,C. / C*,S7"6C73'. C*,(373*,S 0See also8 Modi!ication+ 3as t8e Con+n Datis4ie+ or Excuse+ @-ime is o4 t8e EssenceA F may 9e too general: or may 9e en4orce+! can 9e excuse+ i4 con+ 2=matl part o4 ag+* xc8ange E impractical (Grenier+* i4 not met: consi+er Liq* Dam* -6o stan+ar+s 4or satis4action o9;ecti,e 5 reasonable man! =R: su9;ecti,e: @fancy taste judgement & sensibilityA applications o4 D=" lan+ goo+s o,er M?)) marriage is consi+eration not per4orma9le in one year suretys8ip (at time o4 K) consequences o4 non&compliance non&complying K 2=- illegal! part&per4orme+ t8en restitution! still a K: 9ut unen4orcea9le! consi+eration 4or anot8er promise! statute speclly plea+e+ to 9e use+! 1+ parties still lia9le 4or inter4erence in oral K! S"("$"E !' 'R($DS %olicy > big value8 %ossibility of fraud8 evidence required #CC $%&%)( () sale o4 goo+s o,er M?)): signed 9y party against whom enforcement is sought %) (octorman (time/lan+: strict E unambiguous) Grenier (letter 4rom engineer) Loyal .rectors (policy o4 progress payments ,s* con+* o4 satis4action)* Fursmidt (laun+ry E ,alet 5 su9;*)

S"("$"E !' 'R($DS %olicy > big value8 %ossibility of fraud8 evidence required

estoppel %art4%erformance (9ut may9e only restitution) .romE (9ut not usually employment)

#CC $%&%)(: estoppel pro,isions () btwn merchants: signe+ 9y sen+er: rec,r reas to ?now contents: no sig req+: 9ut can re;ect %) K not 6/in ( is en4orcea9le H": a) goo+s s%ec<lly mfd (cant 9e resol+) 9) /udicial admissions c) rec<d goods part per4ormance 5 rest* only ,at ,al F outsi+e statute o4 4rau+s 9/c K came into existence at moment o4 +ealing #CC $%&%)C: 1) i4 mo+i4ie+ E comes 6/in D=": must comply 6/$%&%)(

illusory promises

mo+i4ication ot8er examples o4 D=" copyrig8t (Ialente) 6ills real estate agreements 4or exten+ing D=L etc* signe+ 9y party against 68om en4orce+ su44iciency o4 6riting lan+: +escription o4 lan+: signe+ 9y party against 68om en4orcement soug8t

&o e %ryant

#CC $%&%)(: +oes 2=- nee+ to contain all

S"("$"E !' 'R($DS %olicy > big value8 %ossibility of fraud8 evidence required mat<l terms! terms nee+ 2=- 9e precise! e,i+ence o4 a real transaction quantity must a%%ear: nee+ not 9e accurate 9ut reco,ery limite+ to amount stated

+oes 2=- 8a,e to 9e an integration! single letter to 1+ person 6ill +o! signed 5 some e,+* o4 aut8entication writing: e&mail. ,oice.

(continue+) memo i+enti4ies: %arties reln E to transaction! s%ecific asset or assets 4orming K! %rice i4 agt: terms o4 pay i4 ot8er t8an case on +eli,ery

ISS$ES construction contracts (rennan (su9&contractor reliance) see also reme+ies employee 8an+9oo7s ma;ority rule: only K i4 clear language t8at 6oul+ allo6 a reasonable em%loyee to regar+ 8an+9oo7 as altering at&6ill: an+ t8ere is valid offer 7 acce%tance some cases say 2EIER 9in+ing K (GA) employment notice/at&6ill spec* per4ormance/+amages GromEstop/D=" mitigation (compara9le employment 5 ran7: locale: not nec pay F Dee Gar7er) collateral source rule (+ont +e+uct unemployment) reme+ies 5 neg in;unction may 9e more apt t8an spec per4ormance

6niversity Patents v. &li$man

4ranc8ise () can 4in+ an o,erarc8ing relations8ip e,en i4 only term is

$%&1)C: successi,e per4ormances $(&%)1: goo+ 4ait8 (reas* termination)

Forrer v. Sears (at&6ill)(no GromEstop)(+etrim* mo,e 2=L) Stearns (2o GromEstop 4or D=") Seymour (Grom Estop RED D=") Mc(onald v.Mo il Coal Producin$ 3nc*: employee 8an+9oo7 3AD sai+ to mo+i4y terms o4 employment! +isclaimer 6as inconspicuous (unusual)! also: course o4 con+uct create+ reasona9le reliance* (em)sey (neg in; not en4orcea9le) Wa$ner (opera star 5 neg in;) Harris v. (allas Cow oys (rennan (su9&contractor lia9ility 4or mista7e) Corenswet (4ranc8ise relations8ip coul+ 9e terminate+ 6/out cause 68en K so speci4ie+* Consistent 6/#CC)*

ISS$ES reasona9le notice! %) ina+equate notice is reme+ia9le at la6 9ut not in equity 9y 4or9i++ing termination! 1) unconsciona9ility can require reasona9le termination notice (Corens6et)! <) legislature may a++ress 9y statute (eg: automo9ile manu4acturer relations8ip) lan+ speci4ic per4ormance D=" issues Seavey v. (rake ((00%) (parol gi4t o4 lan+ en4orcea9le +espite D=": en4orcea9le in equity)

"=IRD .(R"; RI*="S ()D !0LI*("I!)S Agency employment (9ot8 agent E employee sue+) Assignment E Delegation a,oi+ maintenance E cham%erty assigning options: not 9arre+ 9y express terms. assignment E successor language in K. statute/pu9lic policy 4or9i+s. in,ol,es personal integrity or s7ill. eg: reliance on cre+it6ort8iness. option is assigna9le absent a showing it is 6/out L: not assigna9le: an+ not accepte+ accor+ing to its terms: not personal in c8aracter +elegation: same rules as assignment 4or personal E o9;ecti,e ser,ices* -8ir+&Garty Bene4iciary Ks C/L: req+ %rivity! mo+ rule: must 9e inten+e+ 1+ party 9ene4iciary: more t8an an inci+ental 9ene4iciary* loan can 9e L 4or promise to pay (La6rence) Rest* $(<C: transfer o4 K rig8t t8at e1tinguishes rig8t in transferor E gi,es to trans4erree* . no agency in Hadley

Cochran (lan+ option K assigne+) Macke (so4t +rin7s not personal)

Rest* $ 1)% () inten+e+ 9ene4* i4 F recognition o4 rig8t in per4* 1+ party appropriate 4or intent o4 parties E eit8er: %) 6ill satis4y o9l* to pay MM to beneficiary! or a) circumstances in+icate promisee intends to gi,e 9ene4it o4 promise+ per4ormance to 1+ party*

$%&1(0: Extension o4 3arranties A: 4amily 8ouse8ol+ (personal in;ury) B: any person (personal in;ury) & . 9ystan+ers C: any person: any in;ury

Lawrence v. Fo: (Polly) %uick / Hennin$sen (torts)

-rust property cause o4 action*

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