Contracts 8.24.05 Alford Notes Summary form last class (8/22) Baby M case: Look for the hierarchy of law. Const. of law is a highest level, then federal law and statutory law is above state law. Contracts are made to try an address every possible outcome. There are many different policies that underlie different cases. The overwhelming policy is autonomy. In order to be completely free you have to have the freedom to bind yourself. And where the real difficulty in contracts is distinguishing where the line is drawn when the government needs to step in. Hawkins v. Mcgee 1929 Dr. Mcgee sued insurance company because he was upset that he was liable. • These are facts from both cases • The (D) attempted to remove the scar for several years When is there an agreement? What is the proper remedy? Why is this not a tort case? -Because they entered into a contract. The contract is about the warranty of the service. The doctor did not fulfill the warranty; by receiving compensation the doctor would be fulfilling the warranty thereby restoring the (P) hands with compensation. The relationship is between torts and contracts are warranty. Issue: the legal question in the case was whether the words could have the meaning imputed to them by the party who founds his case upon a certain interpretation? The court is not saying that there is a contract; it is saying that the jury is instructed that there may be a contract given these instructions. Preferred remedy in contract law is value of full performance or making something whole again. Expectancy is what the (P) expects with no damages. The trial court is saying you need to pay injured party pain and suffering and ill effects of the surgery. Specific Remedies Specific performance Reliance Reliance going backwards Full expectancy Mitigation of damages Why couldn’t he be forced to go to another doctor for another operation? In this case it says that if you could have repaired the hand you would have got the difference between what you got and a perfect hand and the expected mitigation of the costs of the hand in another operation.