CONTRACTS : CHECKLIST TYPES OF CONTRACT Bi-lateral K & Unilateral…………………………………………………………………………………………………………………………………………………………………………D1 Requirement K…………………………………………………………………………………………………………………………………………………………………………………………D1 Output K…………………………………………………………………………………………………………………………………………………………………………………………………….D1 IS THERE A VALID CONTRACT FORMATION? Offer: ……………………………………………………………………………………………………………………………………………………………………………………………………………1 Reasonably Certain Terms Invite Power of Acceptance Is it a Preliminary Proposal? Option K: Non-Merchants…………………………………………………………………………………………………………………………………………………………………………2 Option K: Merchants "Firm Offer"………………………………………………………………………………………………………………………………………….………………3 Define Merchant Advertisements as Offers: ………………………………………………………………………………………………………………………………………………………………………3 Narrow the Market Acceptance: …………………………………………………………………………………………………………………………………………………………………………….…………………4 Common Law-Mirror Image Rule Exceptions to Mirror Image Mailbox Rule Silence as Acceptance Acceptance by Performance (Unilateral K) Termination of Power of Acceptance: ……………………………………………………………………………………………………………………………….…………………6 Rejection Counter-Offer Revocation Lapse of time Offer & Acceptance Based on Forms "Battle of Forms":……………………………………………………………………………………………………………………6 See Chart Also ESSENTIAL AGREEMENT BETWEEN PARTIES? Objective Manifestation of Intent by offeror? ………………………………………………………………………………………………………………..………………….8 Did the offeree subjectively believe a K formed? IS THERE AN ENFORCEABLE PROMISE? Consideration………………………………………………………………………………………………………………………………………………………………………………………………9 Bargain-for-Exchange No Sham Consideration Pre-Existing Duty Rule What is Not Consideration………………………………………………………………………………………………………………………………………………………….…………10 Conditional Promises Gratuitous Promises Illusory Promises Reliance …………………………………………………………………………………………………………………………………………………………………………………………………….11 Promissory Estoppel/Detrimental Reliance Equitable Estoppel Restitution-Unjust Enrichment Doctrine………………………………………………………………………………………………………………………….…………………12 Implied-in Law Contract Promissory Restitution "Material Benefit Rule"/Pre-Existing Legal Duty Calculating Restitution Damages Statue of Frauds………………………………………………………………………………………………………………………………………………………………………………………14 Under Common law K not to be performed w/in one year K for the sale of interest in land Under UCC Sale of Goods more than $500 Sale of Securities Sale of Personal Property over $5K Is there an Exception WHAT ARE THE TERMS OF THE CONTRACT? Common Law-Principles of Interpretation: ……………………………………………………………………………………………………………………………… ......17 Modified Objective Approach Common Law Good Faith Interpretation Maxims For Sale of Goods K: UCC Gap Fillers……………………………………………………………………………………………………………………………………………………18 Implied Good Faith Implied Terms in Distribution Contracts "Reasonable Efforts" Parole Evidence Rule………………………………………………………………………………………………………………………………………………………………………………21 One party attempting to keep evidence pertaining to a K out See Chart Also IS THERE A THIRD-PARTY BENIFICIARY? Intended Beneficiary ……………………………………………………………………………………………………………………………………………………………………………..25 When contract is formed to benefit another party Assignment & Delegation………………………………………………………………………………………………………………………………………………………………………27 ARE THERE REASONS TO AVOID ENFORCING THE K? Status Defenses: Minority………………………………………………………………………………………………………………………………………………………………………………………………………28 Restitution Exceptions Mental Incapacity…………………………………………………………………………………………………………………………………………………………………………………….29 Cognizant & Volitional Tests Intoxication Behavioral Defenses: Duress………………………………………………………………………………………………………………………………………………………………………………………………………..30 Improper or Wrongful threat-can be economic No Reasonable Alternative Undue Influence………………………………………………………………………………………………………………………………………………………………………………………30 Excessive Pressure/Excessive Strength in Bargaining Power Misrepresentation…………………………………………………………………………………………………………………………………………….…………………………………….31 Fraud in the inducement Fraud in the Factum Material Misrepresentation Non-Disclosure…………………………………………………………………………………………………………………………………………………………………………………………32 Substantive Defenses: Unconsciounabilty……………………………………………………………………………………………………………………………………………………………………………………32 Fairness of Terms & Context of Bargain Public Policy………………………………………………………………………………………………………………………………………………………………………………………………33 Violates Social Norms ARE THERE JUSTIFICATIONS FOR NON-PERFORMANCE? Mistake………………………………………………………………………………………………………………………………………………………………………………………………………34 Mutual or Unilateral Impossibility…………………………………………………………………………………………………………………………………………………………………………………………….35 No one can perform Frustration of Purpose……………………………………………………………………………………………………………………………………………………………………………35 The exchange called for has lost value Impracticability ………………………………………………………………………………………………………………………………………………………………………………………36 Performance sufficiently different Modification………………………………………………………………………………………………………………………………………………………………………………………………37 Requires new consideration-pre-existing duty rule HAS A PARTY BREACHED THE AGREEMENT? Material Breach v. Substantial Performance……………………………………………………………………………………………………………..………………………39 If MB is it a total or partial breach? Anticipatory Repudiation ………………………………………………………………………………………………………………………………………………………………………43 Clear Manifestation of an Intent not to perform Adequate Assurance.....................................................................................................................................................44 Where a party is unsure if the other party has repudiated or can perform Express and Constructive Conditions…………………………………………………….……………………………………………………………………………………………46 When failure to do an express conditions releases the other party How Courts Avoid the Strict Effects of express conditions Satisfaction Conditions WHAT ARE THE DAMAGES? Expectation Damages: …………………………………………………………………………………………………………………………………………………………………………..51 Real-Estate Contracts Employment Contracts Construction Contracts UCC Damage Rules Restrictions on Damages Recovery………………………………………………………………………………………………………………………………..……………………52 Forseeability Certainty Causation Mitigating Damages…………………………………………………………………………………………………………………………………………………………………………………53 Employment Contracts UCC Good Faith Reliance Damages……………………………………………………………………………………………………………………………………………………………………………………56 Essential & Incidental Loss Restitution Damages……………………………………………………………………………………………………………………………………………………………………………...57 Specific Performance………………………………………………………………………………………………………………………………………………………………………………57 Non-Recoverable Damages……………………………………………………………………………………………………………………………………………………………………58 Attorney's Fees Punitive Damages Theory of Expectation Damages…………………………………………………………………………………………………………………………………………………………59 Efficient Breach