contracts warner 1

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Mike Hughes’ Contracts Outline Spring 2000 Prof. Wa rner Page 1 of 66 BLACK-LETTER LAW OUTLINE I. Co nsid er at ion A. Bargain Theory 1. Restateme nt (2d) - The promissor makes a promise in order to get a promise or performance in return, and the promissee gives the promise or performance in order to get the promissor’s promise. B. UCC 2-306 – Ou tput, Req uirements, an e!"#usi $e ea#i ngs – Implies a good faith requirement to promote and/or sell with due diligence . C. %re-e!i sting ut y ru#e – Rep# a"e &y UCC 2-20' ( Rest )2* +') a* 1. A pr omise mo dify ing a duty und er a contr act not ful ly perfo rmed on either side is binding if the modification is fair and equitable in view of circumstances not anticipated by the parties when the contract was made, and made in good faith. II. Promissory Estoe! A. If the promissor should have reasonably expected to induce action or forbearance on the part of the promissee or a 3d party, and did induce such action or forbearance, then the promise is enforceable , to the e!tent ne"essary to a$oi inusti"e. III. Interr etatio n A. O&e"ti$e /ntent Test 1. A pr omise is l egally e nforc eable when a reasona ble pers on woul d, under the circumstances, interpret it as a promise. !ntent of promissor is irrelavent." B. ypotheti "a# /ntent Test (Fall-bac test- used when the unforeseen occurs! * 1. #etermine main purpose of the c ont rac t $. #eter mine what ration al parti es woul d have agree d to had they c ontemplated the unforeseen occurrence. %. #etermine the obligations of t he parties. I".Remedies A. 1!pe"tation itigation easure 1. #eter mine th e posit ion the n on-bre acher w ould hav e been in had the contrac t been performed as promised. $. #eter mine the position the properly mitigating non-bre acher w ould be in as a result of the breach. %. #eter mine how muc h & it takes to move from $." t o 1. " B. a# ey Ru#e – " gets damages reasonably foreseeable at time of contract! (#imits expectation/mitigation damages!$ A#4ays As5 1. 'ho has relevant info of the na ture of loss that c ould oc cur( $. 'ho has the control to avoi d suc h losses( C. %roo o 7amages 4ith R1 A8O9AB:1 C1RT A/ 9T; ) #imits expectation/mitigation damages .*

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