CONTRACTS OUTLINE
RESTATEMENTS....................................................................................................................................... 2
UCC............................................................................................................................................................... 4
REMEDIES.................................................................................................................................................. 4
DAMAGES............................................................................................................................................. 4
Expectation Damages........................................................................................................................4
Diminution of Value v. Cost to Repair....................................................................................... 4
Reduction of Damages & Mitigation......................................................................................... 5
Consequences for Breach Not Included in K, & Special / Consequential Damages..................6
New Business Rule & Proving Damages................................................................................... 6
Mental Distress........................................................................................................................... 7
Reliance Damages.............................................................................................................................7
Restitution / Quantum Meruit / Quasi Contract................................................................................ 7
Disgorgement.................................................................................................................................... 8
Liquidated Damages......................................................................................................................... 8
SPECIFIC PERFORMANCE..................................................................................................................9
LEGALLY ENFORCEABLE PROMISES............................................................................................. 10
BARGAINED-FOR EXCHANGE / CONSIDERATION.................................................................... 10
PROMISES GROUNDED IN THE PAST............................................................................................10
PROMISSORY ESTOPPEL..................................................................................................................10
THE AGREEMENT PROCESS...............................................................................................................12
MUTUAL ASSENT, OFFER & ACCEPTANCE, LIMITED & INDEFINITE PROMISES........ 12
Meeting of the Minds............................................................................................................... 12
Counteroffers............................................................................................................................ 12
Mail Rule.................................................................................................................................. 13
Advertisements as Offers..........................................................................................................13
Preliminary Agreements........................................................................................................... 13
Contract Terms......................................................................................................................... 14
Contracts w/out Bargaining.............................................................................................................14
How to Terminate Offers (Restatement Sec. 36)......................................................................14
Battle of the Forms & Additional Terms.................................................................................. 15
Silence & Acceptance...............................................................................................................16
Implied-in-Fact K v. Implied in Law K....................................................................................16
IDENTIFYING THE BARGAIN............................................................................................................. 16
THE EFFECTS OF WRITING............................................................................................................. 16
Parole Evidence Rule...................................................................................................................... 16
INTERPRETING PROMISES.............................................................................................................. 18
NONDISCLOSURES, MISTAKES, & WARRANTIES...................................................................... 18
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, Mutual Mistakes..............................................................................................................................18
Unilateral Mistakes......................................................................................................................... 19
Misrepresentation............................................................................................................................19
Warranty.......................................................................................................................................... 20
PERFORMANCE & BREACH................................................................................................................21
INTERDEPENDENCE OF PROMISES...............................................................................................21
CONDITIONS.......................................................................................................................................22
BREACH & WAIVER.......................................................................................................................... 23
CHANGED CIRCUMSTANCES......................................................................................................... 24
Impossibility & Frustration of Purpose...........................................................................................24
POLICING THE BARGAIN.................................................................................................................... 26
DURESS & COERCIVE RENEGOTIATION......................................................................................26
RESTATEMENTS
§ 17–Requirement of a Bargain
§ 18–Manifestation of Mutual Assent
§ 19–Conduct as Manifestation of Assent
§ 20–Effect of Misunderstanding
§ 21–Intention to be Legally Bound
§ 22–Mode of Assent; Offer and Acceptance
§ 24–Offer Defined
§ 29–To Whom an Offer is Addressed
§ 32–Invitation of Promise or Performance
§ 33–Certainty
§ 36–Methods of Termination of the Power of Acceptance
§ 45–Option Contract Created by Part Performance or Tender
§ 54–Acceptance by Performance; Necessity of Notification to Offeror
§ 58–Necessity of Acceptance Complying With Terms of Offer
§ 59–Purported Acceptance Which Adds Qualifications
§ 62–Effect of Performance by Offeree Where Offer Invites Either Performance or Promise
§ 63–Time When Acceptance Takes Effect
§ 64–Acceptance by Telephone or Teletype
§ 69–Acceptance by Silence or Exercise of Dominion
§ 71–Requirements of Exchange; Types of Exchange
§ 74–Settlement of Claims
§ 78–Voidable and Unenforceable Promises
§ 79–Adequacy of COnsideration; Mutuality of Obligation
§ 81–Consideration as Motive or Inducing Cause
§ 82–Promise to Pay Indebtedness; Effect on the Statute of Limitations
§ 83–Promise to Pay Indebtedness Discharged in Bankruptcy
§ 86–Promise for Benefit Received
§ 87–Option Contract
2
, § 89–Modification of Executory Contract
§ 90–Promise Reasonably Inducing Action or Forbearance
§ 139–Enforcement by Virtue of Action in Reliance
§ 152–When Mistake of Both Parties Makes a Contract Voidable
§ 153–When Mistake of One Party Makes a Contract Voidable
§ 154–When a Party Bears the Risk of a Mistake
§ 161–When Non-Disclosure Is Equivalent to an Assertion
§ 175–When Duress by Threat Makes a Contract Voidable
§ 205–Duty of Good Faith and Fair Dealing
§ 209–Integrated Agreements
§ 212–Interpretation of Integrated Agreement
§ 211–Standardized Agreements
§ 213–Effect of Integrated Agreement on Prior Agreements (Parole Evidence Rule)
§ 214–Evidence of Prior or Contemporaneous Agreements and Negotiations
§ 216–Consistent Additional Terms
§ 217–Integrated Agreement Subject to Oral Requirement of a Condition
§ 224–Condition Defined
§ 226–How an Event May Be Made a Condition
§ 227–Standards of Preference With Regard to Conditions
§ 228–Satisfaction of the Obligor as a Condition
§ 229–Excuse of a Condition to Avoid Forfeiture
§ 233–Performance at One Time or in Installments
§ 234–Order of Performance
§ 237–Effect on Other Party’s Duties of a Failure to Render Performance
§ 238–Effect on Other Party’s Duties of a Failure Justified by Non-Occurrence of a Condition
§ 240–Past Performance as Agreed Equivalents
§ 245–Effect of a Breach by Non-Performance as Excusing the Non-Occurrence of a Condition
§ 251–When a Failure to Give Assurance May Be Treated as a Repudiation
§ 253–Effect of a Repudiation as a Breach and on Other Party’s Duties
§ 261–Discharge by Supervening Impracticality
§ 263–Destruction, Deterioration or Failure to Come Into Existence of Thing Necessary for Performance
§ 264–Prevention by Governmental Regulation or Order
§ 265–Discharge by Supervening Frustration
§ 268–Effect on Other Party’s Duties of a Prospective Failure Justified by Impracticality or Frustration
§ 269–Temporary Impracticability or Frustration
§ 271–Impracticability as Excuse for Non-Occurrence of a Condition
§ 272–Relief Including Restitution
§ 377–Restitution: Impracticability, Frustration, Non-Occurrence of Condition, Disclaimer by Beneficiary
§ 243–Effect of a Breach by Non-Performance as Giving Rise to a Claim for Damages for Total Breach
§ 250–When a Statement or an Act is a Repudiation
§ 346–Availability of Damages
§ 347–Measure of Damages in General
§ 348–Alternatives to Loss in Value of Performance
§ 349–Damages Based on Reliance Interest
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RESTATEMENTS....................................................................................................................................... 2
UCC............................................................................................................................................................... 4
REMEDIES.................................................................................................................................................. 4
DAMAGES............................................................................................................................................. 4
Expectation Damages........................................................................................................................4
Diminution of Value v. Cost to Repair....................................................................................... 4
Reduction of Damages & Mitigation......................................................................................... 5
Consequences for Breach Not Included in K, & Special / Consequential Damages..................6
New Business Rule & Proving Damages................................................................................... 6
Mental Distress........................................................................................................................... 7
Reliance Damages.............................................................................................................................7
Restitution / Quantum Meruit / Quasi Contract................................................................................ 7
Disgorgement.................................................................................................................................... 8
Liquidated Damages......................................................................................................................... 8
SPECIFIC PERFORMANCE..................................................................................................................9
LEGALLY ENFORCEABLE PROMISES............................................................................................. 10
BARGAINED-FOR EXCHANGE / CONSIDERATION.................................................................... 10
PROMISES GROUNDED IN THE PAST............................................................................................10
PROMISSORY ESTOPPEL..................................................................................................................10
THE AGREEMENT PROCESS...............................................................................................................12
MUTUAL ASSENT, OFFER & ACCEPTANCE, LIMITED & INDEFINITE PROMISES........ 12
Meeting of the Minds............................................................................................................... 12
Counteroffers............................................................................................................................ 12
Mail Rule.................................................................................................................................. 13
Advertisements as Offers..........................................................................................................13
Preliminary Agreements........................................................................................................... 13
Contract Terms......................................................................................................................... 14
Contracts w/out Bargaining.............................................................................................................14
How to Terminate Offers (Restatement Sec. 36)......................................................................14
Battle of the Forms & Additional Terms.................................................................................. 15
Silence & Acceptance...............................................................................................................16
Implied-in-Fact K v. Implied in Law K....................................................................................16
IDENTIFYING THE BARGAIN............................................................................................................. 16
THE EFFECTS OF WRITING............................................................................................................. 16
Parole Evidence Rule...................................................................................................................... 16
INTERPRETING PROMISES.............................................................................................................. 18
NONDISCLOSURES, MISTAKES, & WARRANTIES...................................................................... 18
1
, Mutual Mistakes..............................................................................................................................18
Unilateral Mistakes......................................................................................................................... 19
Misrepresentation............................................................................................................................19
Warranty.......................................................................................................................................... 20
PERFORMANCE & BREACH................................................................................................................21
INTERDEPENDENCE OF PROMISES...............................................................................................21
CONDITIONS.......................................................................................................................................22
BREACH & WAIVER.......................................................................................................................... 23
CHANGED CIRCUMSTANCES......................................................................................................... 24
Impossibility & Frustration of Purpose...........................................................................................24
POLICING THE BARGAIN.................................................................................................................... 26
DURESS & COERCIVE RENEGOTIATION......................................................................................26
RESTATEMENTS
§ 17–Requirement of a Bargain
§ 18–Manifestation of Mutual Assent
§ 19–Conduct as Manifestation of Assent
§ 20–Effect of Misunderstanding
§ 21–Intention to be Legally Bound
§ 22–Mode of Assent; Offer and Acceptance
§ 24–Offer Defined
§ 29–To Whom an Offer is Addressed
§ 32–Invitation of Promise or Performance
§ 33–Certainty
§ 36–Methods of Termination of the Power of Acceptance
§ 45–Option Contract Created by Part Performance or Tender
§ 54–Acceptance by Performance; Necessity of Notification to Offeror
§ 58–Necessity of Acceptance Complying With Terms of Offer
§ 59–Purported Acceptance Which Adds Qualifications
§ 62–Effect of Performance by Offeree Where Offer Invites Either Performance or Promise
§ 63–Time When Acceptance Takes Effect
§ 64–Acceptance by Telephone or Teletype
§ 69–Acceptance by Silence or Exercise of Dominion
§ 71–Requirements of Exchange; Types of Exchange
§ 74–Settlement of Claims
§ 78–Voidable and Unenforceable Promises
§ 79–Adequacy of COnsideration; Mutuality of Obligation
§ 81–Consideration as Motive or Inducing Cause
§ 82–Promise to Pay Indebtedness; Effect on the Statute of Limitations
§ 83–Promise to Pay Indebtedness Discharged in Bankruptcy
§ 86–Promise for Benefit Received
§ 87–Option Contract
2
, § 89–Modification of Executory Contract
§ 90–Promise Reasonably Inducing Action or Forbearance
§ 139–Enforcement by Virtue of Action in Reliance
§ 152–When Mistake of Both Parties Makes a Contract Voidable
§ 153–When Mistake of One Party Makes a Contract Voidable
§ 154–When a Party Bears the Risk of a Mistake
§ 161–When Non-Disclosure Is Equivalent to an Assertion
§ 175–When Duress by Threat Makes a Contract Voidable
§ 205–Duty of Good Faith and Fair Dealing
§ 209–Integrated Agreements
§ 212–Interpretation of Integrated Agreement
§ 211–Standardized Agreements
§ 213–Effect of Integrated Agreement on Prior Agreements (Parole Evidence Rule)
§ 214–Evidence of Prior or Contemporaneous Agreements and Negotiations
§ 216–Consistent Additional Terms
§ 217–Integrated Agreement Subject to Oral Requirement of a Condition
§ 224–Condition Defined
§ 226–How an Event May Be Made a Condition
§ 227–Standards of Preference With Regard to Conditions
§ 228–Satisfaction of the Obligor as a Condition
§ 229–Excuse of a Condition to Avoid Forfeiture
§ 233–Performance at One Time or in Installments
§ 234–Order of Performance
§ 237–Effect on Other Party’s Duties of a Failure to Render Performance
§ 238–Effect on Other Party’s Duties of a Failure Justified by Non-Occurrence of a Condition
§ 240–Past Performance as Agreed Equivalents
§ 245–Effect of a Breach by Non-Performance as Excusing the Non-Occurrence of a Condition
§ 251–When a Failure to Give Assurance May Be Treated as a Repudiation
§ 253–Effect of a Repudiation as a Breach and on Other Party’s Duties
§ 261–Discharge by Supervening Impracticality
§ 263–Destruction, Deterioration or Failure to Come Into Existence of Thing Necessary for Performance
§ 264–Prevention by Governmental Regulation or Order
§ 265–Discharge by Supervening Frustration
§ 268–Effect on Other Party’s Duties of a Prospective Failure Justified by Impracticality or Frustration
§ 269–Temporary Impracticability or Frustration
§ 271–Impracticability as Excuse for Non-Occurrence of a Condition
§ 272–Relief Including Restitution
§ 377–Restitution: Impracticability, Frustration, Non-Occurrence of Condition, Disclaimer by Beneficiary
§ 243–Effect of a Breach by Non-Performance as Giving Rise to a Claim for Damages for Total Breach
§ 250–When a Statement or an Act is a Repudiation
§ 346–Availability of Damages
§ 347–Measure of Damages in General
§ 348–Alternatives to Loss in Value of Performance
§ 349–Damages Based on Reliance Interest
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