10
Professor Robert Butkin
University of Tulsa College of Law
M-F, 10.00 am-11.55 am (Room 2442)
Office: 233
Phone: o) 918.631.2443
c) 918.361.2420
Contracts Syllabus
Summer 2017
Abbreviations:
KCP = Knapp, Crystal & Prince, Problems in Contract Law: Cases and Materials (8th ed. 2016)
R2d = Restatement (Second) of Contracts, reprinted in Knapp, Crystal & Prince, Rules of Contract Law (2015-2016)
UCC = Uniform Commercial Code, reprinted in Knapp, Crystal & Prince, Rules of Contract Law
CISG = Convention on Contracts for the International Sale of Goods, reprinted in Knapp, Crystal & Prince, Rules of Contract Law
TWEN= Course Page on Westlaw TWEN page
I. Introduction
KCP pp. 1-17
Leonard v. PepsiCo, Inc. (handout)
R2d ''1, 17, 22, 24, 26, 33
UCC '' 1-103, 2-102, 2-105(1)
CISG, Articles 1, 2, 10
II. Classical Basis of Contractual Obligation
A. Intention to be Bound: The Objective Theory of Contract
Raffles v. Wichelhaus (handout)
Raffles v. Wichelhaus reading hints (handout)
KCP pp. 29-41, 618-621. 622 n.2
Ray v. William G. Eurice & Bros., Inc.
Park 100 Investors, Inc., vs. Kartes
R2d '201
B. Offer and Acceptance
1. Bilateral Contracts
KCP pp. 43-46, 51-60
Lonergan v. Scolnick
Normile v. Miller
Comment: Remedies for Breach of Contract
R2d §§17, 22, 24, 25, 40, 50(1), 60, 63(a), 36 (1), 38, 39, 43, 59
Handout on the Mailbox Rule
Contract Element Chart
2. Unilateral Contacts
KCP pp. 60-75
Cook v. Coldwell Banker/Frank Laiben Realty Co.
Sateriale v. R.J. Reynolds Tobacco Co.
Comment: Remedies for Breach of Contract
Comparison of bilateral contracts to unilateral contracts (handout)
R2d §§ 22, 24-25, 45, 50
C. Consideration
Introduction: Enforcing Promises (TWEN)
1. What Is Consideration?
KCP pp. 98-102, 111-113 (note 6 only)
Hamer v. Sidway
R2d §§ 71, 79
2. What Isn’t Consideration?
KCP pp. 113-136
Dougherty v. Salt
Dohrmann v. Swaney
Plowman v. Indian Refining Co.
Comment: The Lawyers Role in Counseling for Legal Effect
Comment: The Power of Agents to Bind Their Principals
D. Contract Formation under Article 2 of the Uniform Commercial Code
1. Mutual Assent under the Uniform Commercial Code
KCP pp. 144-150, pp. 155-157
Jannusch v. Naffziger
Comment: Introduction to the CISG
Uniform Commercial Code, Editors’ Note, Statutory Supplement, pp. 1-9
UCC §§ 2-204, 2-206, 2-305, 1-103 (b)
R2d §§ 22, 33, 50
CISG Arts. (1)(a), (2), (6), 10, 14, 18, 23, 24
2. Irrevocability by Statute under Article 2 of the UCC
Introduction to special rules for “merchants” under Article 2
UCC §§ 2-205, 2-104 (1), 1-205, 1-201 (37) and (43)
R2d § 25
3. Qualified Acceptance: The Battle of the Forms
KCP pp. 159-178
Princess Cruises Inc. v. General Electric Co.
Brown Machine, Inc. v. Hercules, Inc
R2d §§ 58, 59, 36, 50
UCC §§ 2-24. 2-2-5. 2-206, 2-207
Handout: Solving UCC §2-207 Problems (TWEN)
Problem Set on Contract Formation under Article 2 (TWEN)
E. Electronic and “Layered” Contracting
KCP, pp. 188-207
Hines v. Overstock.com
DeFontes v. Dell, Inc.
III. Liability in the Absence of a Bargained-For Exchange: Reliance on Gratuitous Promises, Unaccepted Offers, and the Principle of Restitution
A. Protection of Promisee Reliance: The Doctrine of Promissory Estoppel
1. Promises Within the Family
KCP, pp. 213-222
Harvey v. Dow
R2d § 90 (1)
2. Charitable Subscriptions
KCP, pp. 222-232
King v. Trustees of Boston University
Problem 3-1
R2d § 90 (2)
3. Promises in Commercial Context
KCP, pp. 232-240
Katz v. Danny Dare, Inc.
B. Liability in the Absence of Acceptance: Option Contracts, Offeree Reliance, and Statutory Limitations on Revocation
1. The Option Contract as a Limitation on Offeror’s Power to Revoke Limiting: What is an Option Contract and When are They Enforceable?
KCP, pp. 251-259, 280-281
Berryman v. Kmoch
R2d §§ 87
UCC § 2-205
2. Offeree’s Reliance on an Unaccepted Offer as a Limitation on Revocability
KCP, pp. 260-278
James Baird v. Gimbel Bros., Inc.
Drennan v. Star Paving Co.
Pop’s Cones v. Resorts International Hotel, Inc.
R2d, § 87
Background Materials on Public Contracting (handout)
3. Review Problems: Contract Formation and Irrevocability of Offers
KCP, pp. 157-158, Problem 2-4
KCP, pp. 281-282, Problem 3-3
C. Liability for Benefits Received: The Principle of Restitution
1. Restitution in the Absence of a Promise
KCP, pp. 282-294
Credit Bureau Enterprises v. Pelo
Restatement of the Law of Restitution §1 (including comment) (TWEN)
2. Restitution as a Basis of Recovery when a Contract is Unenforceable
R2d, §§ 14, 376
3. Promissory Restitution: The Material Benefit Rule
KCP pp. 313-325, 327
Mills v. Wyman
Webb v. McGowan
Problem 3-5
R2d '' 82, 83, 86
IV. Statute of Frauds: Required Formality
A. General Principles
1. Scope of the Statute; Sufficiency of the Writing
KCP pp. 333-344
Crabtree v. Elizabeth Arden Sales Corp.
R2d '' 110, 130-134
2. Exceptions Based on Reliance
KCP pp. 355-364
Alaska Democratic Party v. Rice
Problem 4-1
R2d '' 129, 139
3. The Sale of Goods and the Statute of Frauds
KCP pp. 366-367
Buffaloe v. Hart
Problem 4-2
UCC '' 2-201, 1-201(37) & (43)
Discussion Problems on the UCC Statute of Frauds (TWEN)
V. The Meaning of the Agreement: Principles of Interpretation and the Parol Evidence Rule
A. Principles of Interpretation
1. General Principles
KCP, pp. 381-393
Joyner v. Adams
R2d '' 201-204, 206-207, 222-223
UCC '' 1-303
2. Contracts of Adhesion/ The Doctrine of Reasonable Expectations
KCP, pp. 401-412
C&J Fertilizer, Inc. v. Allied Mutual Insurance Co.
R2d ' 211
B. The Parol Evidence Rule
1. The Common Law Rule
KCP, pp. 412-421
Thompson v. Libby
R2d '' 209-211, 213-217
2. The UCC Rule and the Importance of Trade Usage
KCP, pp. 450-465
Hurst v. W.J. Lake and Co. (TWEN)
Nanakuli Paving & Rock Co. v. Shell Oil Co.
Problem 5-1
UCC '' 2-202, 1-303
VI. Supplementing the Agreement
A. Reasons for Implied Terms
KCP, pp. 471-475
Wood v. Lucy, Lady Duff-Gordon
R2d, § 204
UCC '' 1-103 (a), 2-305, 2-306, 2-308, 2-309
B. Implied Obligation of Good Faith
KCP, pp. 460-463 (portion of Nanakuli dealing with good faith argument), 479-480 (notes 1 and 2), 481-484, 496-498, 503-513
Locke v. Warner Bros., Inc.
Comment: Requirements and Output Contracts
R2d ' 205
UCC '' 1-201 (20), 1-302, 1-304, 2-103(1) (b), 2-306(1)
Pre-revised UCC §§1-201 (19) (TWEN)
C. Warranties
KCP, pp. 530-550
Bayliner Marine Corp. v. Crow
Speight v. Walters Development Co.
Problem 6-3
UCC '' 2-313, 2-314, 2-315, 2-316
Handout: UCC Warranties (TWEN)
VII. Avoiding Enforcement: Incapacity, Bargaining Misconduct, Unconscionability and Public Policy
A. Minority and Mental Incapacity
Review Halbman v. Lemke, the case you read for Foundations of Legal Study
R2d '' 14-16
UCC ' 1-103 (b)
B. Duress and Undue Influence
KCP, pp. 574-584
Totem Marine Tug & Barge v. Alyeska Pipeline
R2d '' 174, 175 (1), 176-177
C. Misrepresentation and Nondisclosure
KCP, pp. 592-618
Syester v. Banta
Stechshulte v. Jennings
Comment on Lawyers= Professional Ethics
R2d '' 161-164, 168-169, 173
D. Unconscionability
KCP, pp. 622-623 (note D only), 644-661
Quicken Loans v. Brown
Comment: Mandatory Arbitration and Unconscionability
Comment: Consumer Protection Legislation
Handout on Unconscionability: TWEN
UCC ' 2-302
R2d ' 208
E. Public Policy
1. Covenants in Restraint of Competition
KCP, pp. 661-675
Valley Specialists v. Farber
R2d '' 178, 181, 187-188
Handout: Policing Doctrines (TWEN)
2. Public Policy in the Family Context
KCP pp. 675-694, 696-697
In Re Baby
Problem 7-4
R2d §§ 175-177
VIII. Mistake
A. Mutual Mistake
KCP pp. 702-712
Lenawee County Board of Health v.Messerly
B. Unilateral Mistake
KCP, pp. 712-724
DePrince v. Starboard Cruise Services
R2d §§ 151-154
IX. Changed Circumstances between Contract Formation and Time of Performance: When is Performance under a Contract excused?
A. Impossibility, Impracticability, and Frustration
KCP, pp. 724-743, 754-755
Waddy v. Ribbleman
Problem 8-1
R2d '' 261-265, 272
UCC '' 2-613, 2-614, 6-615
B. Contract Modification
KCP, pp. 755-772
Alaska Packers= Assn v. Domenico
Kelsey-Hayes Co. v. Galtaco Redlaw Castings Corp.
Problem 8-3
R2d '' 73, 89, 205
UCC '§ 2-209, 1-304
X. Breach of Duty
A. Express Conditions
KCP, pp. 785-809
enXco development Corp. v. Northern States Power Co.
J.N.A. Realty Corp. v. Cross Bay Chelsea, Inc
Problem 9-1
R2d §§ 224--229, 245
B. Substantial Performance and Material Breach
KCP, pp. 809-828
Jacob & Youngs, Inc. v. Kent
Comment: The Doctrine of Constructive Conditions
Sackett v. Spindler
UCC=s Perfect Tender Rule
R2d §§ '' 234-35, 237-238, 240-243, 245
UCC ''2-601, 2-608, 2-508
C. Anticipatory Repudiation and Opportunity to Seek Reasonable Assurances
KCP, pp. 828-836, 842-846
Truman L. Flatt & Sons v. Schupf
R2d '' 250, 251, 253, 256
UCC '' 2-609, 2-610, 2-611
Problem 9-2
D. The “Perfect Tender Rule” of UCC Article 2
UCC §§ 2-301, 2-602, 2-612, 2-508, 2-504, 2-718 (1), 2-719
XI. Expectation Damages
A. Introduction to Expectation Damages
KCP, pp. 851-877
Crabby’s, Inc. v. Hamilton
Handicapped Children’s Education Board v. Lukaszewski
American Standard Inc. v. Schechtman
R2d '' 344, 347-348
Problems Presented in Cases 1, 2, 3 in KCP, p. 856
B. Limitations on the Recovery of Expectation Damages
1. Foreseeability
KCP, pp. 877-883
Hadley v. Baxendale
R2d § 351
UCC 2-715(2)
2. Causation and Certainty
KCP pp. 883-895
Florafax International, Inc. v. GTE Market Resources, Inc.
R2d §§ 347, 352
UCC '' 2-710, 2-715, 2-719
3. Mitigation of Damages
KCP, pp. 895-899
Rockingham County v. Luten Bridge
R2d §350
UCC 2-715 (2)
C. Non-Recoverable Damages: Attorneys Fees, Emotional Distress, Punitive Damages
KCP, pp. 919-920, 928-943
Erlich v. Menezes
Comment: Recovery of Punitive Damages for Bad Faith Breach of Contract
Problem 10-1
R2d §§ 353, 355
XII. Alternatives to Expectation Damages
A. Reliance Damages
KCP, pp. 971-988
Wartzman v. Hightower Productions, Ltd.
Walser v. Toyota Motor Sales, U.S.A., Inc
R2d § 349
B. Restitution Damages
KCP 989-993
United States ex rel. Coastal Steel Erectors, Inc. v. Algernon Blair, Inc.
R2d §§ 370-371, 375-377
C. Availability of Specific Performance as an Expectation Remedy
KCP, pp. 1012-1025
City Stores Co. V. Ammerman
R2d §§ 359-367
D. Agreed Remedies: Liquidated Damages and Penalty Clauses
KCP, pp. 1034-1051
Barrie School v. Patch
R2d ' 356
UCC ' 2-718 (1), 2-719
XIII. Buyer’s and Seller’s Remedies under UCC Article 2
KCP, pp. 943-950 (Omit Problems).
Read all UCC Sections cited on pp. 943-950
Prepare Problem Set on Remedies under UCC Article 2 (TWEN)