Problems in Contract Law : Cases and Materials

by Knapp, Charles L.; Crystal, Nathan M.; Prince, Harry G.

• ISBN13: 9780735500280
• ISBN10: 0735500282
• Edition: 4th
• Format: Hardcover
• Copyright: 1999-06-01
• Publisher: Wolters Kluwer

Summary

PROBLEMS IN CONTRACT LAW: Cases and Materials has always bee a favorite of first-time Contracts teachers. By combining contemporary theory and problems with more traditional cases and notes, this successful casebook has become the choice of wide range of profesors. This eagerly-awaited revision introduces new co-author H.G. Prince and a host of new material while it retains the intellectual integrity of previous editions. This extremely teachable casebook draws praise for its: exceptionally engaging problems that mesh with cases, notes, and questions to hold student interest integration of contemporary contract theory such as feminist, law and economics, and other viewpoints. balanced structure and organization that allows the book to be comprehensive, without overwhelming students companion Rules Supplement outstanding Teacher's Manual, with sample syllabi, teaching points keyed to specific pages, answers to many of the problems, and questions keyed to case summaries To keep the book fresh and current, this Fourth Edition features: updated problems, cases, and references expanded coverage of promissory estoppel greater discussion of Alternative Dispute Resolution as it relates to contract law. For your next Contracts course, consider the book that is firmly positioned where scholarship meets practice: PROBLEMS IN CONTRACT LAW: Cases and Materials, Fourth Edition.

Author Biography

Charles L. Knapp is Distinguished Professor of Law, University of California, Hastings College of the Law; and Max E. Greenberg Professor Emeritus of Contract Law, New York University School of Law.

Table of Contents

Preface	xxiii
Acknowledgments	xxvii
An Introduction to the Study of Contract Law	1	(40)
Contract Law in the First-Year Law Curriculum	2	(2)
The Sources of Contract Law	4	(7)
Judicial Opinions	4	(2)
Statutory Law	6	(2)
The Restatements	8	(1)
Legal Commentary	9	(1)
International Commercial Law	10	(1)
The Perspective of Contract Theory	11	(4)
The Lawyering Perspective	15	(2)
Contract Law Through Case Study: An Example	17	(24)
Rollins, Inc. v. Foster	18	(10)
Notes and Questions	28	(7)
Problem 1-1	35	(3)
Selected Bibliography	38	(3)
The Classical System of Contract Law: Mutual Assent and Bargained-for Exchange	41	(98)
Mutual Assent	42	(53)
The Objective Theory of Contract	42	(1)
Ray v. William G. Eurice & Bros., Inc.	43	(8)
Notes and Questions	51	(2)
Park 100 Investors, Inc. v. Kartes	53	(4)
Notes and Questions	57	(1)
Offer and Acceptance: Bilateral Contracts	58	(1)
Lonergan v. Scolnick	59	(3)
Notes and Questions	62	(2)
Normile v. Miller	64	(7)
Notes and Questions	71	(1)
Offer and Acceptance: Unilateral Contracts	72	(2)
Petterson v. Pattberg	74	(4)
Notes and Questions	78	(2)
Cook v. Coldwell Banker/Frank Laiben Realty Co.	80	(3)
Notes and Questions	83	(2)
Duldulao v. Saint Mary of Nazareth Hospital Center	85	(5)
Notes and Questions	90	(2)
Problem 2-1	92	(1)
Comment: Remedies for Breach of Contract	93	(2)
Enforcing Exchange Transactions: The Doctrine of Consideration	95	(44)
Hamer v. Sidway	96	(4)
Notes and Questions	100	(1)
Comment: History of the Consideration Doctrine	101	(2)
Baehr v. Penn-O-Tex Oil Corp.	103	(3)
Notes and Questions	106	(6)
Dougherty v. Salt	112	(1)
Notes and Questions	113	(2)
Comment: The Lawyer's Role in Counseling for Legal Effect	115	(3)
Plowman v. Indian Refining Co.	118	(5)
Notes and Questions	123	(4)
Comment: The Power of Agents to Bind Their Principals	127	(2)
Batsakis v. Demotsis	129	(3)
Notes and Questions	132	(5)
Problem 2-2	137	(2)
Obligation in the Absence of Exchange: Promissory Estoppel and Restitution	139	(102)
Promissory Estoppel: Protection of Unbargained-for Reliance	140	(52)
Promises Within the Family	141	(1)
Kirksey v. Kirksey	142	(1)
Notes and Questions	143	(1)
Greiner v. Greiner	143	(4)
Notes and Questions	147	(1)
Wright v. Newman	148	(5)
Notes and Questions	153	(2)
Charitable Subscriptions	155	(1)
Allegheny College v. National Chautauqua County Bank	155	(7)
Notes and Questions	162	(2)
King v. Trustees of Boston University	164	(6)
Notes and Questions	170	(3)
Problem 3-1	173	(1)
Promises in a Commercial Context	174	(1)
Katz v. Danny Dare, Inc.	175	(5)
Notes and Questions	180	(2)
Shoemaker v. Commonwealth Bank	182	(4)
Notes and Questions	186	(3)
Comment: The Status and Future of Promissory Estoppel	189	(3)
Restitution: Liability for Benefits Received	192	(49)
Restitution in the Absence of a Promise	194	(1)
Glenn v. Savage	194	(2)
Notes and Questions	196	(3)
Commerce Partnership 8098 Limited Partnership v. Equity Contracting Co.	199	(5)
Notes and Questions	204	(3)
Watts v. Watts	207	(10)
Notes and Questions	217	(4)
Promissory Restitution	221	(1)
Mills v. Wyman	222	(3)
Notes and Questions	225	(3)
Webb v. McGowin	228	(4)
Notes and Questions	232	(5)
Problem 3-2	237	(1)
Problem 3-3	238	(3)
Obligation in the Absence of Complete Agreement	241	(112)
Limiting the Obligor's Power to Revoke: The Effect of Pre-Acceptance Reliance	242	(32)
James Baird Co. v. Gimbel Bros., Inc.	243	(2)
Notes and Questions	245	(1)
Drennan v. Star Paving Co.	246	(5)
Notes and Questions	251	(4)
Comment: Contract Law and Business Practice	255	(3)
Berryman v. Kmoch	258	(5)
Notes and Questions	263	(2)
Pop's Comes, Inc. v. Resorts International Hotel, Inc.	265	(7)
Notes and Questions	272	(2)
Irrevocability by Statute: The ``Firm Offer''	274	(11)
Mid-South Packers, Inc. v. Shoney's, Inc.	275	(4)
Notes and Questions	279	(3)
Problem 4-1	282	(1)
Problem 4-2	283	(2)
Qualified Acceptance: The ``Battle of Forms''	285	(38)
Poel v. Brunswick-Balke-Collender Co.	287	(4)
Notes and Questions	291	(3)
Problem 4-3	294	(1)
Problem 4-4	295	(1)
Brown Machine, Inc. v. Hercules, Inc.	296	(6)
Notes and Questions	302	(4)
Dale R. Horning Co. v. Falconer Glass Industries, Inc.	306	(9)
Notes and Questions	315	(6)
Problem 4-5	321	(1)
Proposed Revised §§2-205 and 2-207 (3/99 Draft)	321	(2)
Postponed Bargaining: The ``Agreement to Agree''	323	(30)
Walker v. Keith	324	(6)
Notes and Questions	330	(3)
Quake Construction, Inc. v. American Airlines, Inc.	333	(8)
Notes and Questions	341	(5)
Comment: The Pennzoil/Texaco Case	346	(5)
Problem 4-6	351	(2)
The Statute of Frauds	353	(66)
General Principles: Scope and Application	356	(36)
Crabtree v. Elizabeth Arden Sales Corp.	357	(5)
Notes and Questions	362	(4)
Winternitz v. Summit Hills Joint Venture	366	(7)
Notes and Questions	373	(2)
Comment: The Historical Development of Law and Equity	375	(2)
Alaska Democratic Party v. Rice	377	(7)
Notes and Questions	384	(5)
Problem 5-1	389	(3)
The Sale of Goods Statute of Frauds: UCC §2-201	392	(27)
Buffaloe v. Hart	393	(5)
Notes and Questions	398	(4)
Bazak International Corp. v. Mast Industries, Inc.	402	(11)
Notes and Questions	413	(4)
Problem 5-2	417	(2)
The Meaning of the Agreement: Principles of Interpretation and the Parol Evidence Rule	419	(96)
Principles of Interpretation	420	(38)
Joyner v. Adams	423	(4)
Notes and Questions	427	(4)
Frigaliment Importing Co. v. B.N.S. International Sales Corp.	431	(6)
Notes and Questions	437	(6)
C & J Fertilizer, Inc. v. Allied Mutual Insurance Co.	443	(9)
Notes and Questions	452	(6)
The Parol Evidence Rule	458	(57)
Thompson v. Libby	461	(2)
Notes and Questions	463	(5)
Taylor v. State Farm Mutual Automobile Insurance Co.	468	(11)
Notes and Questions	479	(7)
Sherrodd, Inc. v. Morrison-Knudsen Co.	486	(5)
Notes and Questions	491	(3)
Nanakuli Paving & Rock Co. v. Shell Oil Co.	494	(13)
Notes and Questions	507	(2)
Problem 6-1	509	(2)
Problem 6-2	511	(4)
Supplementing the Agreement: The Obligation of Good Faith and Other Implied Terms	515	(80)
The Rationale for Implied Terms	515	(13)
Wood v. Lucy, Lady Duff-Gordon	516	(2)
Notes and Questions	518	(2)
Leibel v. Raynor Manufacturing Co.	520	(4)
Notes and Questions	524	(4)
Implied Warranties	528	(13)
Caceci v. Di Canio Construction Corp.	531	(4)
Notes and Questions	535	(6)
The Implied Obligation of Good Faith	541	(54)
Empire Gas Corp. v. American Bakeries Co.	544	(8)
Notes and Questions	552	(5)
Locke v. Warner Bros., Inc.	557	(8)
Notes and Questions	565	(4)
Comment: Lender Liability	569	(2)
E. I. DuPont de Nemours & Co. v. Pressman	571	(10)
Notes and Questions	581	(6)
Problem 7-1	587	(1)
Problem 7-2	588	(7)
Avoiding Enforcement: Incapacity, Bargaining Misconduct, Unconscionability, and Public Policy	595	(150)
Minority and Mental Incapacity	596	(22)
Problem 8-1	597	(1)
Dodson v. Shrader	597	(4)
Notes and Questions	601	(4)
Hauer v. Union State Bank of Wautoma	605	(9)
Notes and Questions	614	(4)
Duress and Undue Influence	618	(21)
Totem Marine Tug & Barge, Inc. v. Alyeska Pipeline Service Co.	619	(7)
Notes and Questions	626	(5)
Odorizzi v. Bloomfield School District	631	(7)
Notes and Questions	638	(1)
Misrepresentation and Nondisclosure	639	(28)
Syester v. Banta	641	(8)
Notes and Questions	649	(3)
Hill v. Jones	652	(7)
Notes and Questions	659	(6)
Comment: Lawyers' Professional Ethics	665	(2)
Unconscionability	667	(37)
Williams v. Walker-Thomas Furniture Co.	669	(5)
Notes and Questions	674	(6)
Comment: Consumer Protection Legislation	680	(3)
American Software, Inc. v. Ali	683	(5)
Notes and Questions	688	(2)
Piantes v. Pepperidge Farm, Inc.	690	(9)
Notes and Questions	699	(5)
Public Policy	704	(41)
Borelli v. Brusseau	705	(7)
Notes and Questions	712	(3)
Problem 8-2	715	(1)
Karlin v. Weinberg	716	(9)
Notes and Questions	725	(5)
R. R. v. M. H. & another	730	(7)
Notes and Questions	737	(4)
Problem 8-3	741	(1)
Problem 8-4	742	(3)
Justification for Nonperformance: Mistake, Changed Circumstances, and Contractual Modifications	745	(84)
Mistake	746	(24)
Lanawee County Board of Health v. Messerly	747	(7)
Notes and Questions	754	(4)
Wil-Fred's, Inc. v. Metropolitan Sanitary District	758	(7)
Notes and Questions	765	(5)
Changed Circumstances, Impracticability, and Frustration	770	(28)
Karl Wendt Farm Equipment Co. v. International Harveste Co.	773	(10)
Notes and Questions	783	(6)
Harriscom Svenska, AB v. Harris Corp.	789	(4)
Notes and Questions	793	(3)
Problem 9-1	796	(2)
Problem 9-2	798	(1)
Modification	798	(31)
Problem 9-3	798	(2)
Alaska Packers' Association v. Domenico	800	(4)
Notes and Questions	804	(5)
Kelsey-Hayes Co. v. Galtaco Redlaw Castings Corp.	809	(5)
Notes and Questions	814	(3)
Brookside Farms v. Mama Rizzo's, Inc.	817	(8)
Notes and Questions	825	(4)
Rights and Duties of Third Parties	829	(50)
Rights of Third Parties as Contract Beneficiaries	829	(26)
Grigerik v. Sharpe	833	(7)
Notes and Questions	840	(5)
Zigas v. Superior Court	845	(7)
Notes and Questions	852	(3)
Assignment and Delegation of Contractual Rights and Duties	855	(24)
Herzog v. Irace	858	(3)
Notes and Questions	861	(4)
Sally Beauty Co. v. Nexxus Products Co.	865	(10)
Notes and Questions	875	(3)
Problem 10-1	878	(1)
Consequences of Nonperformance: Material Breach, Anticipatory Repudiation, and Express Conditions	879	(80)
Material Breach	881	(22)
Jacob & Youngs, Inc. v. Kent	881	(5)
Notes and Questions	886	(5)
Comment: The Doctrine of Constructive Conditions	891	(4)
Sackett v. Spindler	895	(4)
Notes and Questions	899	(4)
Anticipatory Repudiation	903	(20)
Truman L. Flatt & Sons Co. v. Schupf	903	(7)
Notes and Questions	910	(3)
Hornell Brewing Co. v. Spry	913	(6)
Notes and Questions	919	(4)
Express Conditions	923	(36)
Oppenheimer & Co. v. Oppenheim, Appel, Dixon & Co.	924	(8)
Notes and Questions	932	(7)
J. N. A. Realty Corp. v. Cross Bay Chelsea, Inc.	939	(6)
Notes and Questions	945	(2)
Morin Building Products Co. v. Baystone Construction, Inc.	947	(4)
Notes and Questions	951	(3)
Problem 11-1	954	(2)
Problem 11-2	956	(1)
Problem 11-3	957	(2)
Expectation Damages: Principles and Limitations	959	(134)
Computing the Value of Plaintiff's Expectation	962	(26)
Turner v. Benson	966	(5)
Notes and Questions	971	(4)
Handicapped Children's Education Board v. Lukaszewski	975	(4)
Notes and Questions	979	(1)
American Standard, Inc. v. Schectman	980	(4)
Notes and Questions	984	(4)
Restrictions on the Recovery of Expectation Damages: Foreseability, Certainty, and Causation	988	(21)
Hadley v. Baxendale	989	(2)
Notes and Questions	991	(4)
Florafax International, Inc. v. GTE Market Resources, Inc.	995	(9)
Notes and Questions	1004	(5)
Restrictions on the Recovery of Expectation Damages: Mitigation of Damages	1009	(22)
Rockingham County v. Luten Bridge Co.	1010	(3)
Notes and Questions	1013	(1)
Boehm v. American Broadcasting Co.	1014	(4)
Notes and Questions	1018	(5)
Jetz Service Co. v. Salina Properties	1023	(5)
Notes and Questions	1028	(3)
Nonrecoverable Damages: Items Commonly Excluded from Plaintiff's Damages for Breach of Contract	1031	(40)
Preferred Mutual Insuance Co. v. Gamache	1032	(5)
Notes and Questions	1037	(5)
Gaglidari v. Denny's Restaurants, Inc.	1042	(8)
Notes and Questions	1050	(3)
Freeman & Mills, Inc. v. Belcher Oil Co.	1053	(10)
Notes and Questions	1063	(6)
Problem 12-1	1069	(2)
Justifications for the Expectation Damage Rule	1071	(22)
Protecting the Expectation Interest Under a Wholly Executory Contract	1071	(7)
Encouraging Breach of Contract: The Theory of ``Efficient Breach''	1078	(7)
Roth v. Speck	1085	(3)
Notes and Questions	1088	(3)
Problem 12-2	1091	(2)
Alternatives to Expectation Damages: Reliance and Restitutionary Damages, Specific Performance, and Agreed Remedies	1093	(116)
Reliance Damages	1093	(22)
Wartzman v. Hightower Productions, Ltd.	1093	(8)
Notes and Questions	1101	(3)
Walser v. Toyota Motor Sales, U.S.A., Inc.	1104	(5)
Notes and Questions	1109	(6)
Restitutionary Damages	1115	(28)
United States ex rel. Coastal Steel Erectors, Inc. v. Algernon Blair, Inc.	1116	(2)
Notes and Questions	1118	(2)
Lancellotti v. Thomas	1120	(6)
Notes and Questions	1126	(2)
Ventura v. Titan Sports, Inc.	1128	(10)
Notes and Questions	1138	(4)
Problem 13-1	1142	(1)
Specific Performance	1143	(30)
City Stores Co. v. Ammerman	1146	(8)
Notes and Questions	1154	(5)
American Broadcasting Co. v. Wolf	1159	(9)
Notes and Questions	1168	(5)
Agreed Remedies	1173	(36)
Wasserman's Inc. v. Township of Middletown	1174	(9)
Notes and Questions	1183	(8)
Phillips v. CIGNA Investments, Inc.	1191	(11)
Notes and Questions	1202	(1)
Comment: Commercial Arbitration	1203	(3)
Problem 13-2	1206	(1)
Problem 13-3	1207	(2)
UCC Article 2: Warranties and Remedies	1209	(60)
Warranties of Quality Under the UCC and Related Tort Theories	1210	(20)
Creation of Warranties	1212	(1)
Express Warranties, UCC §2-313	1212	(2)
Implied Warranties of Merchantability, UCC §2-314	1214	(1)
Implied Warranties of Fitness for a Particular Purpose, UCC §2-315	1215	(1)
Implied Warranties of Title, UCC §2-312	1216	(1)
Article 2A Warranties in Leases, UCC §§2A-209 to 2A-213	1216	(1)
Defenses to Actions for Breach of Warranty	1217	(1)
Disclaimers of Warranties	1217	(4)
Lack of ``Privity'' of Contract	1221	(3)
Other Defenses: Plaintiff's Contributory Behavior, Statute of Limitations, and Failure to Give Notice	1224	(1)
Strict Tort Liability for Defective Products	1224	(1)
Background	1224	(2)
Recovery of Economic Loss in Strict Tort	1226	(1)
Recovery of Property Damage in Strict Tort	1227	(1)
Recovery of Economic Loss Under a Negligence Theory	1228	(1)
Problem 14-1	1229	(1)
Buyers' Remedies	1230	(20)
Cancellation	1231	(1)
Rejection: The Perfect Tender Rule	1231	(3)
Acceptance	1234	(1)
Revocation of Acceptance	1235	(1)
Cure	1235	(2)
Installment Contracts	1237	(1)
Damages	1238	(1)
Cover, UCC §2-712	1238	(2)
Market Damages, UCC §2-713	1240	(3)
Damages for Accepted Goods, UCC §2-714	1243	(1)
Incidental and Consequential Damages, UCC §2-715	1244	(3)
Specific Performance	1247	(1)
Other Remedies Available to Buyers	1248	(1)
Problem 14-2	1248	(1)
Problem 14-3	1249	(1)
Problem 14-4	1249	(1)
The Effect of the Federal Magnuson-Moss Act and State Lemon Laws on Buyers' Remedies for Breach of Warranty	1250	(6)
Overview	1250	(1)
Scope of Act	1251	(1)
Substantive Provisions	1252	(1)
Remedies	1253	(1)
Evaluation of the Act	1254	(1)
State Lemon Laws	1255	(1)
Sellers' Remedies	1256	(11)
Cancellation	1256	(1)
Damages	1257	(1)
Resale Damages, UCC §2-706	1257	(1)
Market Damages, UCC §2-708(1)	1258	(2)
Lost Profits, UCC §2-708(2)	1260	(3)
Seller's Action for the Price, UCC §2-709	1263	(2)
Seller's Incidental and Consequential Damages, UCC §2-710	1265	(1)
Other Remedies Available to Sellers	1266	(1)
Problem 14-5	1266	(1)
International Sales Contracts	1267	(2)
Problem 14-6	1268	(1)
Table of Cases	1269	(26)
Table of Uniform Commercial Code Provisions	1295	(4)
Table of Other Uniform and Model Acts	1299	(2)
Table of Provisions from Restatement (Second) of Contracts	1301	(4)
Table of Provisions from Restatement (First) of Contracts	1305	(2)
Table of Provisions from Other Restatements	1307	(2)
Table of Rules of Professional Ethics	1309	(2)
Table of Secondary Authorities	1311	(18)
Index	1329