T
T
T
Purchase Individual Subscription: Audio Opinions $59, click here | STUDENT SPECIAL - Audio Opinions and Trial Video $99, click here

Be a student rep and get free access. Click here for more information.

Contracts

Dawson, Henderson, Harvey
7th Edition
ISBN: 1566625904
Page Case Name Citation Court Audio
3 Hawkins v. McGee 84 N.H. 114, 146 A. 641 Supreme Court of New Hampshire, 1929 Download
12 Groves v. John Wunder Co. 205 Minn. 163, 286 N.W. 235. Supreme Court of Minnesota, 1939 Download
23 Acme Mills & Elevator Co. v. Johnson 141 Ky. 718, 133 S.W. 784 Court of Appeals of Kentucky, 1911 Download
38 Louise Caroline Nursing Home, Inc. v. Dix Constr. Corp. 362 Mass. 306, 285 N.E.2d 904 Supreme Judicial Court of Massachusetts, 1972 Download
41 Rockingham County v. Luten Bridge Co. 35 F.2d 301. United States Court of Appeals, Fourth Circuit, 1929. Download
47 Parker v. Twentieth Century-Fox Film Corp. 3 Cal.3d 176, 89 Cal.Rptr. 737, 474 P.2d 689 Supreme Court of California, 1970 Download
56 Missouri Furnace Co. v. Cochran 8 F. 463 United States Circuit Court, W.D. Pennsylvania, 1881 Download
64 Neri v. Retail Marine Corp. 30 N.Y.2d 393, 334 N.Y.S.2d 165, 285, N.E.2d 311 Court of Appeals of New York, 1972 Download
69 Hadley v. Baxendale 9 Exch. 341. Court of Exchequer, 1854. Download
77 Valentine v. General American Credit, Inc. 420 Mich. 256, 362 N.W.2d 628 Supreme Court of Michigan, 1984 Download
82 Freund v. Washington Square Press, Inc. 34 N.Y.2d 379, 357 N.Y.S.2d 857, 314 N.E.2d 419 Court of Appeals of New York, 1974 Download
89 Chicago Coliseum v. Dempsey 265 Ill.App. 542 Appellate Court of Illinois, First District, 1932 Download
100 Boone v. Coe 153 Ky. 233, 154 S.W. 900 Court of Appeals of Kentucky, 1913 Download
103 United States v. Algernon Blair, Inc. 479 F.2d 638 United States Court of Appeals, Fourth Circuit, 1973 Download
115 Britton v. Turner 6 N.H. 481 Supreme Court of New Hampshire, 1834 Download
121 Pinches v. Swedish Evangelical Lutheran Church 55 Conn. 183, 10 A. 264 Supreme Court of Errors of Connecticut, 1887 Download
125 Vines v. Orchard Hills, Inc. 181 Conn. 501, 435 A.2d 1022 Supreme Court of Connecticut, 1980 Download
133 City of Rye v. Public Service Mut. Ins. Co. 34 N.Y.2d 470, 358 N.Y.S.2d 391, 315 N.E.2d 458 Court of Appeals of New York, 1974 Download
144 Fretwell v. Protection Alarm Co. 764 P.2d 149 Supreme Court of Oklahoma, 1988 Download
151 Van Wagner Advertising Corp. v. S & M Enterprises 67 N.Y.2d 186, 501 N.Y.S.2d 628, 492 N.E.2d 756 Court of Appeals of New York, 1986 Download
162 Laclede Gas Co. v. Amoco Oil Co. 522 F.2d 33 United States Court of Appeals, Eight Circuit, 1975 Download
170 Fitzpatrick v. Michael 177 Md. 248, 9 A.2d 639 Court of Appeals of Maryland, 1939 Download
180 Northern Delaware Indus. Dev. Corp. v. E.W. Bliss Co. 245 A.2d 431 Court of Chancery of Delaware, 1968 Download
192 Congregation Kadimah Toras-Moshe v. DeLeo 405 Mass. 365, 540 N.E.2d 691 Supreme Judicial Court of Massachusetts, 1989 Download
204 Hamer v. Sidway 124 N.Y. 538, 27 N.E. 256 Court of Appeals of New York, 1891 Download
210 Fischer v. Union Trust Co. 138 Mich. 612, 101 N.W. 852 Supreme Court of Michigan, 1904 Download
214 Batsakis v. Demotsis 226 S.W.2d 673 Court of Civil Appeals of Texas, 1949 Download
219 Duncan v. Black 324 S.W.2d 483 Court of Appeals of Missouri, 1959 Download
223 Martin v. Little, Brown & Co. 304 Pa.Super. 424, 450 A.2d 984 Superior Court of Pennsylvania, 1981 Download
230 Mills v. Wyman 20 Mass. (3 Pick.) 207 Supreme Judicial Court of Massachusetts, 1825 Download
235 Webb v. McGowin 27 Ala.App. 82, 168 So.196 Court of Appeals of Alabama, 1935 Download
244 Kirksey v. Kirksey 8 Ala. 131 Supreme Court of Alabama, 1845 Download
247 Allegheny College v. National Chautauqua County Bank 246 N.Y. 369, 159 N.E. 173 Court of Appeals of New York, 1927 Download
259 East Providence Credit Union v. Geremia 103 R.I. 597, 239 A.2d 725 Supreme Court of Rhode Island, 1968 Download
264 Seavy v. Drake 62 N.H. 393 Supreme Court of New Hampshire, 1882 Download
271 Forrer v. Sears, Roebuck & Co. 36 Wis.2d 388, 153 N.W.2d 587 Supreme Court of Wisconsin, 1967 Download
275 Stearns v. Emery-Waterhouse Co. 596 A.2d 72 Supreme Judicial Court of Maine, 1991 Download
278 Goodman v. Dicker 169 F.2d 684 United States Court of Appeals, District of Columbia, 1948 Download
286 Levine v. Blumenthal 117 N.J.L. 23, 186 A. 457 Supreme Court of New Jersey, 1936 Download
295 Obering v. Swain-Roach Lumber Co. 86 Ind.App. 632, 155 N.E. 712 Appellate Court of Indiana, 1927 Download
298 Wood v. Lucy, Lady Duff-Gordon 222 N.Y. 88, 118 N.E. 214 Court of Appeals of New York, 1917 Download
302 Omni Group, Inc. v. Seattle-First Nat'l Bank 32 Wash.App. 22, 645 P.2d 727 Court of Appeals of Washington, 1982 Download
308 Feld v. Henry S. Levy & Sons, Inc. 37 N.Y.2d 466, 373 N.Y.S.2d 102, 335 N.E.2d 320 Court of Appeals of New York, 1975 Download
316 Sheets v. Teddy's Frosted Foods, Inc. 179 Conn. 471, 427 A.2d 385 Supreme Court of Connecticut, 1980 Download
325 Embry v. Hargadine, McKittrick Dry Goods Co. 127 Mo.App. 383, 105 S.W. 777 Court of Appeals, Missouri, 1907 Download
329 Kabil Developments Corp. v. Mignot 279 Or. 151, 566 P.2d 505 Supreme Court of Oregon, 1977 Download
334 McDonald v. Mobil Coal Producing, Inc. 820 P.2d 986. Supreme Court of Wyoming, 1991 Download
343 Moulton v. Kershaw 59 Wis. 316, 18 N.W. 172 Supreme Court of Wisconsin, 1884 Download
346 Joseph Martin, Jr. Delicatessen v. Schumacher 52 N.Y.2d 105, 436 N.Y.S.2d 247, 417 N.E.2d 541 Court of Appeals of New York, 1981 Download
352 Empro Mfg. Co. v. Ball-Co Mfg., Inc. 870 F.2d 423 United States Court of Appeals, Seventh Circuit, 1989 Download
355 Wheeler v. White 398 S.W.2d 93 Supreme Court of Texas, 1965 Download
358 Raffles v. Wichelhaus 2 Hurlstone & Coltman 906 Court of Exchequer, 1864 Download
363 Cobaugh v. Klick-Lewis, Inc. 385 Pa.Super. 587, 561 A.2d 1248 Superior Court of Pennsylvania, 1989 Download
369 Allied Steel & Conveyors, Inc. v. Ford Motor Co. 277 F.2d 907 United States Court of Appeals, Sixth Circuit, 1960 Download
372 Davis v. Jacoby 1 Cal.2d 370, 34 P.2d 1026 Supreme Court of California, 1934 Download
378 Petterson v. Pattberg 248 N.Y. 86, 161 N.E. 428 Court of Appeals of New York, 1928 Download
385 Brackenbury v. Hodgkin 116 Me. 399, 102 A. 106 Supreme Judicial Court of Maine, 1917 Download
392 Thomason v. Bescher 176 N.C. 622, 97 S.E. 654 Supreme Court of North Carolina, 1918 Download
395 James Baird Co. v. Gimbel Bros. 64 F.2d 344 United States Court of Appeals, Second Circuit, 1933 Download
399 Drennan v. Star Paving Co. 51 Cal.2d 409, 333 P.2d 757 Supreme Court of California, 1958 Download
409 Hoffman v. Red Owl Stores, Inc. 26 Wis.2d 683, 133 N.W.2d 267 Supreme Court of Wisconsin, 1965 Download
416 Livingston v. Evans [1925] 4 D.L.R. 769 Supreme Court of Alberta, 1925 Download
422 Idaho Power Co. v. Westinghouse Electric Corp. 596 F.2d 924 United States Court of Appeals, Ninth Circuit, 1979 Download
430 ProCD, Inc. v. Zeidenberg 86 F.3d 1447 United States Court of Appeals, Seventh Circuit, 1996 Download
437 Morrison v. Thoelke 155 So.2d 889 District Court of Appeals of Florida, 1963 Download
448 Hobbs v. Massasoit Whip Co. 158 Mass. 194, 33 N.E. 495 Supreme Judicial Court of Massachusetts, 1893 Download
452 Morone v. Morone 50 N.Y.2d 481, 429 N.Y.S.2d 592, 413 N.E.2d 1154 Court of Appeals of New York, 1980 Download
457 Mitchill v. Lath 247 N.Y. 377, 160 N.E. 646 Court of Appeals of New York, 1928 Download
464 Hatley v. Stafford 284 Or. 523, 588 P.2d 603 Supreme Court of Oregon, 1978 Download
477 Long Island Trust Co. v. International Inst. for Packaging Educ., Ltd. 38 N.Y.2d 493, 381 N.Y.S.2d 445, 344 N.E.2d 377 Court of Appeals of New York, 1976 Download
485 Lipsit v. Leonard 64 N.J. 276, 315 A.2d 25 Supreme Court of New Jersey, 1974 Download
490 LaFazia v. Howe 575 A.2d 182 Supreme Court of Rhode Island, 1990 Download
497 Hoffman v. Chapman 182 Md. 208, 34 A.2d 438 Court of Appeals of Maryland, 1943 Download
504 Pacific Gas & Elec. Co. v. G.W. Thomas Drayage & Rigging Co. 69 Cal.2d 33, 69 Cal.Rptr. 561, 442 P.2d 641 Supreme Court of California, 1968 Download
514 Mundy v. Lumberman's Mut. Cas. Co. 783 F.2d 21 United States Court of Appeals, First Circuit, 1986 Download
520 Henningsen v. Bloomfield Motors, Inc. 32 N.J. 358, 161 A.2d 69 Supreme Court of New Jersey, 1960 Download
527 Richards v. Richards 181 Wis.2d 1007, 513 N.W.2d 118 Supreme Court of Wisconsin, 1994 Download
531 Broemmer v. Abortion Services of Phoenix 173 Ariz. 148, 840 P.2d 1013 Supreme Court of Arizona, 1992 Download
543 Halbman v. Lemke 99 Wis.2d 241, 298 N.W.2d 562 Supreme Court of Wisconsin, 1980 Download
557 Odorizzi v. Bloomfield School Dist. 246 Cal.App.2d 123, 54 Cal.Rptr. 533 California District Court of Appeal, 1966 Download
562 Austin Instrument, Inc. v. Loral Corp. 29 N.Y.2d 124, 324 N.Y.S.2d 22, 272 N.E.2d 533 Court of Appeals of New York, 1971 Download
569 Alaska Packers' Ass'n v. Domenico 117 F. 99 United States Court of Appeals, Ninth Circuit, 1902 Download
573 Brian Constr. & Dev. Co. v. Brighenti 176 Conn. 162, 405 A.2d 72 Supreme Court of Connecticut, 1978 Download
580 Universal Builders, Inc. v. Moon Motor Lodge, Inc. 430 Pa. 550, 244 A.2d 10 Supreme Court of Pennsylvania, 1968 Download
586 Hackley v. Headley 45 Mich. 569, 8 N.W. 511 Supreme Court of Michigan, 1881 Download
590 Marton Remodeling v. Jensen 706 P.2d 607 Supreme Court of Utah, 1985 Download
598 Denney v. Reppert 432 S.W.2d 647 Court of Appeals of Kentucky, 1968 Download
601 Jackson v. Seymour 193 Va. 735, 71 S.E.2d 181 Supreme Court of Appeals of Virginia, 1952 Download
606 Sherwood v. Walker 66 Mich. 568, 33 N.W. 919 Supreme Court of Michigan, 1887 Download
616 Elsinore Union Elementary School Dist. v. Kastorff 54 Cal.2d 380, 6 Cal.Rptr. 1, 353 P.2d 713 Supreme Court of California, 1960 Download
625 Tribe v. Peterson 964 P.2d 1238 Supreme Court of Wyoming, 1998 Download
628 Hinson v. Jefferson 287 N.C. 422, 215 S.E.2d 102 Supreme Court of North Carolina, 1975 Download
635 Johnson v. Healy 176 Conn. 97, 405 A.2d 54 Supreme Court of Connecticut, 1978 Download
640 Cushman v. Kirby 148 Vt. 571, 536 A.2d 550 Supreme Court of Vermont, 1987 Download
648 Taylor v. Caldwell 3 Best & S. 826 King's Bench, 1863 Download
652 Tompkins v. Dudley 25 N.Y. 272 Court of Appeals of New York, 1862 Download
654 Carroll v. Bowersock 100 Kan. 270, 164 P. 143 Supreme Court of Kansas, 1917 Download
663 Kel Kim Corp. v. Central Markets, Inc. 70 N.Y.2d 900, 524 N.Y.S.2d 384, 519 N.E.2d 295 Court of Appeals of New York, 1987 Download
665 Bunge Corp. v. Recker 519 F.2d 449 United States Court of Appeals, Eight Circuit, 1975. Download
669 American Trading & Prod. Corp. v. Shell Int'l Marine, Ltd. 453 F.2d 939 United States Court of Appeals, Second Circuit, 1972 Download
675 Krell v. Henry 2 K.B. 740 Court of Appeal, 1903 Download
681 Lloyd v. Murphy 25 Cal.2d 48, 153 P.2d 47 Supreme Court of California, 1944 Download
684 Chase Precast Corp. v. John J. Paonessa Co. 409 Mass. 371, 566 N.E.2d 603 Supreme Judicial Court of Massachusetts, 1991 Download
688 Woollums v. Horsley 93 Ky. 582, 20 S.W. 781 Court of Appeals of Kentucky, 1892 Download
695 Waters v. Min Ltd. 412 Mass. 64, 587 N.E.2d 231 Supreme Judicial Court of Massachusetts, 1992 Download
701 Brower v. Gateway 2000, Inc. 246 A.D.2d 246, 676 N.Y.S.2d 569 Supreme Court of New York, Appellate Division, 1998 Download
716 Howard v. Federal Crop Ins. Corp. 540 F.2d 695 United States Court of Appeals, Fourth Circuit, 1976 Download
721 Gray v. Gardner 17 Mass. 188 Supreme Judicial Court of Massachusetts, 1821 Download
728 Parsons v. Bristol Dev. Co. 62 Cal.2d 861, 44 Cal.Rptr. 767, 402 P.2d 839 Supreme Court of California, 1965 Download
733 Mascioni v. I.B. Miller, Inc. 261 N.Y. 1, 184 N.E. 473 Court of Appeals of New York, 1933 Download
737 Royal-Globe Ins. Co. v. Craven 411 Mass. 629, 585 N.E.2d 315 Supreme Judicial Court of Massachusetts, 1992 Download
742 Gilbert v. Globe & Rutgers Fire Ins. Co. 91 Or. 59, 174 P. 1161 Supre Court of Oregon, 1919 Download
749 Porter v. Harrington 262 Mass. 203, 159 N.E. 530 Supreme Judicial Court of Massachusetts, 1928
753 Clark v. West 193 N.Y. 349, 86 N.E. 1 Court of Appeals of New York, 1908 Download
757 Inman v. Clyde Hall Drilling Co. 369 P.2d 498 Supreme Court of Alaska, 1962 Download
760 Aetna Cas. & Sur. Co. v. Murphy 206 Conn. 409, 538 A.2d 219 Supreme Court of Connecticut, 1988
766 Grenier v. Compratt Constr. Co. 189 Conn. 144, 454 A.2d 1289 Supreme Court of Connecticut, 1983 Download
771 Nolan v. Whitney 88 N.Y. 648 Court of Appeals of New York, 1882 Download
773 Fursmidt v. Hotel Abbey Holding Corp. 10 A.D.2d 447, 200 N.Y.S.2d 256 Supreme Court of New York, Appellate Division, 1960 Download
777 Nichols v. Raynbred Hobart, 88 Court of King's Bench, 1615
780 Kingston v. Preston 2 Doug. 689 Court of King's Bench, 1773
783 Price v. Van Lint 46 N.M. 58, 120 P.2d 611 Supreme Court of New Mexico, 1941 Download
789 Conley v. Pitney Bowes 34 F.3d 714 United States Court of Appeals, Eigth Circuit, 1994 Download
792 Ziehen v. Smith 148 N.Y. 558, 42 N.E. 1080 Court of Appeals of New York, 1896 Download
796 Cohen v. Kranz 12 N.Y.2d 242, 238 N.Y.S.2d 928, 189 N.E.2d 473 Court of Appeals of New York, 1963
800 Beecher v. Conradt 13 N.Y. 108 Court of Appeals of New York, 1855 Download
805 Osborne v. Bullins 549 So.2d 1337 Supreme Court of Mississippi, 1989 Download
808 Stewart v. Newbury 220 N.Y. 379, 115 N.E. 984 Court of Appeals of New York, 1917
812 Tipton v. Feitner 20 N.Y. 423 Court of Appeals of New York, 1859 Download
815 Oshinsky v. Lorraine Mfg. Co. 187 F. 120 United States Court of Appeals, Second Circuit, 1911
820 Bartus v. Riccardi 55 Misc.2d 3, 284 N.Y.S.2d 222 City Court of Utica, Oneida County, New York, 1967 Download
824 Plateq Corp. of North Haven v. Machlett Labs, Inc. 189 Conn. 433, 456 A.2d 786 Supreme Court of Connecticut, 1983 Download
829 Plante v. Jacobs 10 Wis.2d 567, 103 N.W.2d 296 Supreme Court of Wisconsin, 1960
837 Worcester Heritage Society, Inc. v. Trussell 31 Mass.App.Ct. 343, 577 N.E.2d 1009 Court of Appeals of Massachusetts, 1991 Download
840 Wholesale Sand & Gravel, Inc. v. Decker 630 A.2d 710 Supreme Judicial Court of Maine, 1993 Download
846 Hathaway v. Sabin 63 Vt. 527, 22 A. 633 Supreme Court of Vermont, 1891
854 Cherwell-Ralli, Inc. v. Rytman Grain Co. 180 Conn. 714, 433 A.2d 984 Supreme Court of Connecticut, 1980
857 Greguhn v. Mutual of Omaha Ins. Co. 23 Utah 2d 214, 461 P.2d 285 Supreme Court of Utah, 1969
865 Reigart v. Fisher 149 Md. 336, 131 A. 568 Court of Appeals of Maryland, 1925 Download
869 Lawrence v. Fox 20 N.Y. 268 Court of Appeals of New York, 1859 Download
875 Seaver v. Ransom 224 N.Y. 233, 120 N.E. 639 Court of Appeals of New York, 1918 Download
885 Anderson v. Fox Hill Village Homeowners Corp. 424 Mass. 365, 676 N.E.2d 821 Supreme Judicial Court of Massachusetts, 1997 Download
887 H.R. Moch Co. v. Rensselaer Water Co. 247 N.Y. 160, 159 N.E. 896 Court of Appeals of New York, 1928 Download
892 Heyer v. Flaig 70 Cal.2d 223, 74 Cal.Rptr. 225, 449 P.2d 161 Supreme Court of California, 1969 Download
897 Robson v. Robson 514 F.Supp. 99 United States District Court, N.D. Illinois, 1981 Download
903 Rouse v. United States 215 F.2d 872 United States Court of Appeals, District of Columbia Circuit, 1954
907 Langel v. Betz 250 N.Y. 159, 164 N.E. 890 Court of Appeals of New York, 1928
910 Herzog v. Irace 594 A.2d 1106 Supreme Judicial Court of Maine, 1991
914 Cochran v. Taylor 273 N.Y. 172, 7 N.E.2d 89 Court of Appeals of New York, 1937 Download
917 Macke Co. v. Pizza of Gaithersburg, Inc. 259 Md. 479, 270 A.2d 645 Court of Appeals of Maryland, 1970 Download
923 Allhusen v. Caristo Constr. Corp. 303 N.Y. 446, 103 N.E.2d 891 Court of Appeals of New York, 1952 Download
932 Ford Motor Credit Co. v. Morgan 404 Mass. 537, 536 N.E.2d 587 Supreme Judicial Court of Massachusetts, 1989 Download
938 Homer v. Shaw 212 Mass. 113, 98 N.E. 697 Supreme Judicial Court of Massachusetts, 1912 Download
Case Information Fact Summary Rule of Law
Hawkins v. McGee
Supreme Court of New Hampshire, 1929
84 N.H. 114, 146 A. 641
Pg. 3
The plaintiff received a skin graft from a doctor who promised to improve the look of the plaintiff's hand, which had been severely burned. The doctor used skin from the boy's chest. The boy ended up with a hand covered with dense hair. NOTE: This case is affectionately known as "the hairy hand case," and was made famous by the movie the Paper Chase. The rule for damages is the difference between the value of the thing promised (in this case a perfect hand) and the value after breach (in this case a hairy hand).
Groves v. John Wunder Co.
Supreme Court of Minnesota, 1939
205 Minn. 163, 286 N.W. 235.
Pg. 12
Plaintiff entered into a lease with defendant. The lease stipulated that the defendant would remove sand and gravel and leave the property at a uniform grade. The measure of damages is the cost of remedying the breach.
Acme Mills & Elevator Co. v. Johnson
Court of Appeals of Kentucky, 1911
141 Ky. 718, 133 S.W. 784
Pg. 23
Appellee sold appellant bushels of wheat. Appellee failed to deliver wheat at a time agreed upon and the appellant brought action to recover damages. The measure of damages is the difference between the contract price and the market price of the property at the place and time of delivery.
Louise Caroline Nursing Home, Inc. v. Dix Constr. Corp.
Supreme Judicial Court of Massachusetts, 1972
362 Mass. 306, 285 N.E.2d 904
Pg. 38
The Plaintiff contracted with the defendant to build a nursing home. The defendant began construction and then breached. The measure of damages where a contractor has failed to perform a contract for the construction of a building for business uses is the value had the building been finished less the value as left by the contractor.
Rockingham County v. Luten Bridge Co.
United States Court of Appeals, Fourth Circuit, 1929.
35 F.2d 301.
Pg. 41
The plaintiff entered into a contract with the county board to build a bridge. Subsequent to awarding the contract, the county board reconstituted and submitted a resolution telling the plaintiff to stop working. The plaintiff finished the bridge. A plaintiff who receives notice of breach has a duty to mitigate damages.
Parker v. Twentieth Century-Fox Film Corp.
Supreme Court of California, 1970
3 Cal.3d 176, 89 Cal.Rptr. 737, 474 P.2d 689
Pg. 47
Plaintiff (Shirley MacLaine) entered into a contract for a movie, which involved singing and dancing in California. The defendant decided not to produce the film and offered plaintiff the lead in another movie. In breaches of personal contracts or employment contracts, damages are the amount agreed to less the amount one could have earned with reasonable effort. The employer has the burden of proving that the other employment offered is comparable or substantially similar.
Missouri Furnace Co. v. Cochran
United States Circuit Court, W.D. Pennsylvania, 1881
8 F. 463
Pg. 56
The plaintiff entered into a contract with the defendant for the delivery of coke. After making partial delivery, the defendant notified the plaintiff that he had rescinded the contract. The plaintiff entered into a forward contract with another vendor for a significantly greater amount. when contracts for the sale of goods are broken by the vendor failing to deliver, the measure of damages is the difference between the contract price and the market value at the time it should have been delivered.
Neri v. Retail Marine Corp.
Court of Appeals of New York, 1972
30 N.Y.2d 393, 334 N.Y.S.2d 165, 285, N.E.2d 311
Pg. 64
The plaintiff contracted to buy a boat from the defendant, making a deposit of $4,250. The plaintiff was later hospitalized and couldn't make payments. The boat had already been ordered from the manufacturer and the defendant refused to give the plaintiff back his deposit. If the seller is a volume seller, then the measure of damages in the event of a breach by the buyer is the amount of profit the seller would have made.
Hadley v. Baxendale
Court of Exchequer, 1854.
9 Exch. 341.
Pg. 69
The plaintiffs were millers who sued the defendant, a firm of carriers, for their failure within the time promised to deliver a broken mill shaft to the manufacturer. Damages should be those that arise from breach, or such as may reasonably be supposed to have been made in contemplation of both parties. In the case of special circumstances, the defendant may be liable for damages arising from the breach if the special circumstances have been communicated.
Valentine v. General American Credit, Inc.
Supreme Court of Michigan, 1984
420 Mich. 256, 362 N.W.2d 628
Pg. 77
The Plaintiff sought to recover damages for mental distress arising out of a breach of an employment agreement. A person discharged in breach of an employment contract may not usually recover mental distress damages.
Freund v. Washington Square Press, Inc.
Court of Appeals of New York, 1974
34 N.Y.2d 379, 357 N.Y.S.2d 857, 314 N.E.2d 419
Pg. 82
The plaintiff, a professor and author, sued a publisher for breach and failure to publish his manuscript. Expectation damages that are speculative are not recoverable.
Chicago Coliseum v. Dempsey
Appellate Court of Illinois, First District, 1932
265 Ill.App. 542
Pg. 89
The plaintiff and defendant entered into a contract where defendant would fight for the boxing championship of the world. Defendant repudiated the contract and began preparing for a match with Tunney. An injured party has a right to recover damages based on his reliance interest, including the cost of preparation for performance.
Boone v. Coe
Court of Appeals of Kentucky, 1913
153 Ky. 233, 154 S.W. 900
Pg. 100
The plaintiff and defendant entered into a parol contract where the plaintiff would provide farming services and the defendant would provide the plaintiff with housing and a portion of the crops. In reliance, the plaintiff moved from Kentucky to Texas. When they arrived, the defendant refused the let them occupy the farm. Damages cannot be recovered for a violation within the statute of frauds.
United States v. Algernon Blair, Inc.
United States Court of Appeals, Fourth Circuit, 1973
479 F.2d 638
Pg. 103
A subcontractor justifiably ceased working on a contract because of a prime contractor's breach. The plaintiff may substitute reliance damages when expectation damages are insufficient.
Britton v. Turner
Supreme Court of New Hampshire, 1834
6 N.H. 481
Pg. 115
Plaintiff agreed to work on the defendant's farm for a year for $120. The plaintiff left after nine and a half months. Where a party receives value, he is liable to pay the reasonable worth of what he has received.
Pinches v. Swedish Evangelical Lutheran Church
Supreme Court of Errors of Connecticut, 1887
55 Conn. 183, 10 A. 264
Pg. 121
Plaintiff hired defendant to construct church. The specifications required under the contract differed from what the defendant's delivered. The ceilings were too low, and the windows and seats were too narrow. Where the cost of remedying defects in construction are unreasonable, the court will award damages equivalent to diminution in value.
Vines v. Orchard Hills, Inc.
Supreme Court of Connecticut, 1980
181 Conn. 501, 435 A.2d 1022
Pg. 125
Plaintiff put 10% of condo down in Connecticut and was then transferred by his employer to New Jersey. The plaintiff breached the contract and tried to recover his down payment. There was a liquidated damages clause in the contract. A purchaser whose breach is not willful has a restitutionary claim to recover money paid that unjustly enriches his seller.
City of Rye v. Public Service Mut. Ins. Co.
Court of Appeals of New York, 1974
34 N.Y.2d 470, 358 N.Y.S.2d 391, 315 N.E.2d 458
Pg. 133
The plaintiff contract for the completion of six buildings. The development timeline was secured by a bond. The project was delayed by more than 500 days and the plaintiff sued to recover the bond. To recover damages on a liquidated damages clause, a party must show that the clause is a reasonable calculation of damages.
Fretwell v. Protection Alarm Co.
Supreme Court of Oklahoma, 1988
764 P.2d 149
Pg. 144
As a result of a burglary, the Fretwells sued the defendant, Protection Alarm Co., which installed and maintained a burglary alarm system in the Fretwell's residence. At issue was a contractual provision which limited the defendant's liability to $50. Provisions limiting liability and the amount of damages under burglar alarm service agreements will be upheld so long as they are neither unconscionable nor against public policy. In this case the court concluded that the contractual provision limiting the defendant's liability was neither unconscionable nor against public policy and therefore limited the Fretwell's damages to $50.
Van Wagner Advertising Corp. v. S & M Enterprises
Court of Appeals of New York, 1986
67 N.Y.2d 186, 501 N.Y.S.2d 628, 492 N.E.2d 756
Pg. 151
The plaintiff leased billboard space on a building in Manhattan. The defendant acquired the building and instructed the plaintiff to leave the premises. Specific performance of a contract is denied when there is an adequate monetary remedy and awarding specific performance would unduly burden the defendant.
Laclede Gas Co. v. Amoco Oil Co.
United States Court of Appeals, Eight Circuit, 1975
522 F.2d 33
Pg. 162
Laclede (the distributor) and Amoco (the supplier) agreed to supply propane gas to residents in Montana. Amoco breached the contract because of a dispute over the price of propane under the contract. A court may award specific performance where goods are unique and it is difficult to procure a suitable substitute.
Fitzpatrick v. Michael
Court of Appeals of Maryland, 1939
177 Md. 248, 9 A.2d 639
Pg. 170
The plaintiff was employed by the defendant as a nurse and caretaker. The defendant promised the plaintiff money and an inheritance if she would stay and take care of him after his wife passed away. The defendant changed his mind and locked the plaintiff out of the house. The court cannot compel personal services of an employee against the wish of the employer.
Northern Delaware Indus. Dev. Corp. v. E.W. Bliss Co.
Court of Chancery of Delaware, 1968
245 A.2d 431
Pg. 180
The plaintiff and defendant contracted to modernize a steel plant. The work on the project did not progress as quickly as the plaintiff would have liked, so the plaintiff sought specific performance, asking the court to compel the defendant to add more workers. Specific performance will be denied where it is impractical for the court to enforce the performance.
Congregation Kadimah Toras-Moshe v. DeLeo
Supreme Judicial Court of Massachusetts, 1989
405 Mass. 365, 540 N.E.2d 691
Pg. 192
A dying man made an oral promise to give his synagogue a gift of $25,000. Where there is no legal benefit to the promisor nor detriment to the promisee, there is no consideration and thus no contract.
Hamer v. Sidway
Court of Appeals of New York, 1891
124 N.Y. 538, 27 N.E. 256
Pg. 204
A boy's uncle promised him $5,000 if he would refrain from drinking, using tobacco, swearing, and playing cards or billiards for money until he became twenty-one years of age. "Consideration means not so much that one party is profiting as that the other abandons some legal right in the present or limits his legal freedom of action in the future as an inducement for the promise of the first."
Fischer v. Union Trust Co.
Supreme Court of Michigan, 1904
138 Mich. 612, 101 N.W. 852
Pg. 210
A father gave his incompetent daughter a deed to his property in exchange for one dollar. Transactions that appear to have a bargained for exchange do not constitute consideration if the substance of the agreement does not manifest a sufficient bargained for exchange.
Batsakis v. Demotsis
Court of Civil Appeals of Texas, 1949
226 S.W.2d 673
Pg. 214
During WWII, the plaintiff gave the defendant what amounted to a loan of $25, so that defendant could return to the United States. In return, the defendant agreed to pay defendant $2,000 plus interest. A bargained for exchange does not require equal value to constitute consideration.
Duncan v. Black
Court of Appeals of Missouri, 1959
324 S.W.2d 483
Pg. 219
Plaintiff sold defendant a plot of land with the provision that plaintiff would receive a 65 acre cotton allotment. The land only had 49.6 acres, so defendant provided the additional land in the first year to bring plaintiff to 65 acres. The following year the defendant refused. Forebearance from pursuing an invalid claim does not constitute consideration.
Martin v. Little, Brown & Co.
Superior Court of Pennsylvania, 1981
304 Pa.Super. 424, 450 A.2d 984
Pg. 223
While reading, plaintiff noticed that portions of a book published by defendant had been plagiarized. Plaintiff contacted defendant and offered to furnish his copy of the book with the plagiarized sections highlighted. The defendant accepted and plaintiff sent the highlighted book. The defendant ended up suing the plagiarizers and the plaintiff demanded 1/3rd of the recovery. The Defendant denied the request and sent a check for $200. Gain based on the work of a volunteer does not entitle the volunteer to collect a portion of that gain.
Mills v. Wyman
Supreme Judicial Court of Massachusetts, 1825
20 Mass. (3 Pick.) 207
Pg. 230
Mills’ son became sick while at sea. The Wyman family took him in and cared for him, incurring medical expenses. Mills’ father wrote the Wyman’s a note, indicating that he would pay them for the care they provided his son prior to his son’s death. There must be a pre-existing obligation for there to be sufficient consideration. It is only when the party making the promise gains something, or he to whom it is made loses something, that the law gives the promise validity.
Webb v. McGowin
Court of Appeals of Alabama, 1935
27 Ala.App. 82, 168 So.196
Pg. 235
Plaintiff was working for a lumber company clearing an upper-level floor by throwing 75 lb. pine blocks to the ground floor. As he was throwing a pine block, defendant came into sight and plaintiff acted to save the life of defendant by falling with the pine block to the floor below, saving the life of defendant and crippling the plaintiff for life. Defendant agreed to care for plaintiff for the rest of his life and pay him $15 every two weeks. A promise based on a prior material benefit conferred is enforceable.
Kirksey v. Kirksey
Supreme Court of Alabama, 1845
8 Ala. 131
Pg. 244
A brother (defendant) asked his sister (plaintiff) to come and live with him, promising her a place to live and to help provide for her and her children. The brother gave his sister a place to live in the woods and then kicked her out after two years. A promise that is a mere gratuity does not constitute consideration.
Allegheny College v. National Chautauqua County Bank
Court of Appeals of New York, 1927
246 N.Y. 369, 159 N.E. 173
Pg. 247
Mary Yates Johnston pledged $5,000 to Allegheny College for the establishment of a Mary Yates Johnston scholarship. The donation was to be paid after Mary Yates passed away. She paid $1,000 prior to her death. She later gave notice the college that she repudiated her promise. 30 days after her death the college brought suit against her estate. Where there is a benefit conferred in a charitable subscription case, there is consideration.
East Providence Credit Union v. Geremia
Supreme Court of Rhode Island, 1968
103 R.I. 597, 239 A.2d 725
Pg. 259
Plaintiff loaned defendant $2,350.28, which was secured by defendant's car. As a condition of the loan, the car was to be insured at all times during the life of the loan. Defendant defaulted on the insurance payments. Subsequently, defendant received notice from the insurance company and the bank. Plaintiff and defendant discussed the situation over the phone and plaintiff agreed to pay for the insurance and add the payment to the amount of the loan covered by the promissory agreement. Defendant got into an accident and was not covered because the bank did not, in fact, cover their insurance payment. The doctrine of promissory estoppel generally holds that, when a promise has been relied on the promisor is estopped from claiming that there was no consideration.
Seavy v. Drake
Supreme Court of New Hampshire, 1882
62 N.H. 393
Pg. 264
The plaintiff’s dad orally promised him part of his land. The plaintiff dropped a debt owed by his father to him, and then his father gave him more land. The plaintiff made improvements on the land. The plaintiff sued his father’s estate to get a deed to the land. Making improvements on land promised by a donor constitutes consideration in equity for the promise.
Forrer v. Sears, Roebuck & Co.
Supreme Court of Wisconsin, 1967
36 Wis.2d 388, 153 N.W.2d 587
Pg. 271
Plaintiff was promised “permanent employment” by Sears and sold his farm, animals, etc. to begin working fulltime at Sears. He was later fired. Permanent employment means ordinary employment terminable at the will of either party.
Stearns v. Emery-Waterhouse Co.
Supreme Judicial Court of Maine, 1991
596 A.2d 72
Pg. 275
Plaintiff left his job managing Sears to work for defendant. The use of promissory estoppel cannot circumvent the statute of frauds in employment contracts that are longer than one year and where the promisee cannot prove fraud.
Goodman v. Dicker
United States Court of Appeals, District of Columbia, 1948
169 F.2d 684
Pg. 278
Plaintiff was induced to make expenditures in reliance on defendant's promise that they would be granted a "dealer franchise." Plaintiff can recover for expenditures made in reasonable reliance on defendant's promise.
Levine v. Blumenthal
Supreme Court of New Jersey, 1936
117 N.J.L. 23, 186 A. 457
Pg. 286
Plaintiff leased a space to defendant for $175 per month with an option to renew the following two years at an increased level. At the end of the first year, the defendant told the plaintiff that the business could not enforce the rent increase and that it would put them out of business. The plaintiff told the defendant that they could stay at the first year rate until business improved. The defendant stayed for 11 months, paying the first year rate and then left the space, leaving the last month unpaid. The legal duty rule establishes that if one promises to do something they are already obligated to do then, they are simply reinforcing their already existing legal duty and there is no modification to the extant contract.
Obering v. Swain-Roach Lumber Co.
Appellate Court of Indiana, 1927
86 Ind.App. 632, 155 N.E. 712
Pg. 295
Executor of estate gave notice of tracts of land that were for sale. One tract of land that was for sale contained valuable timber. The appellant entered into agreement with appellees where the appellees would buy the land from the estate and then sell the land to the appellants. Appellees would be able to clear the land of timber. The appellees bought the land and then appellant refused to buy it. That a promise is contingent upon a future act by a party to the contract does not make the contract void for lack of mutuality in obligation.
Wood v. Lucy, Lady Duff-Gordon
Court of Appeals of New York, 1917
222 N.Y. 88, 118 N.E. 214
Pg. 298
The defendant, a fashion designer, entered into a contract with plaintiff, where plaintiff would have the exclusive right to place the endorsement of the defendant on the design of others. Plaintiff claimed that he kept his part of the contract, but that defendant endorsed other products, not associated with plaintiff, and kept the profits. In a promise of exclusivity, even if the party has not been successful commercially, reasonable efforts made will constitute consideration and the agreement will be held enforceable.
Omni Group, Inc. v. Seattle-First Nat'l Bank
Court of Appeals of Washington, 1982
32 Wash.App. 22, 645 P.2d 727
Pg. 302
Plaintiff appeals a judgment for John Clark and his wife in the plaintiff's action to enforce a judgment for the Clark's on a purchase agreement. The Clark's backed out of the purchase agreement with Omni because they believed the promise was conditioned and illusory. A promise for a promise is sufficient consideration, unless the promise is illusory. Whereas real promises limit a party in some way, illusory promises do not bind a party in fact.
Feld v. Henry S. Levy & Sons, Inc.
Court of Appeals of New York, 1975
37 N.Y.2d 466, 373 N.Y.S.2d 102, 335 N.E.2d 320
Pg. 308
Plaintiff agreed to purchase all bread crumbs from defendant. The defendant ceased producing bread crumbs because the operation was not profitable. Output contracts, which do not provide for a specific quantity do not lack mutuality because of indefiniteness, but rather call for the supplier to produce a "reasonable amount."
Sheets v. Teddy's Frosted Foods, Inc.
Supreme Court of Connecticut, 1980
179 Conn. 471, 427 A.2d 385
Pg. 316
Plaintiff was employed as a quality control and operations manager for defendant. In the course of his employment, plaintiff noticed deviations from statutory-based standards. Plaintiff was terminated for his efforts to ensure that defendant's products would comply with applicable law. An exception to at-will employment exists where discharge contravens a clear mandate of public policy.
Embry v. Hargadine, McKittrick Dry Goods Co.
Court of Appeals, Missouri, 1907
127 Mo.App. 383, 105 S.W. 777
Pg. 325
Plaintiff was employed with the defendant as a sample selector. The plaintiff had a one-year employment contract with defendant for $2,000 per year. Upon the expiration of the employment contract, plaintiff approached the defendant and sought to renew his employment contract at the same rate. The plaintiff contended that he approached the defendant, telling him that he would quit if not rehired. According the plaintiff, the defendant replied, "don't worry, you are alright." Plaintiff interpreted that to mean that he was under a renewed contract with the defendant. Under the objective theory of contract formation, if a parties' conduct or expressions would induce a reasonable person to believe that the party had assented to the contract, then the contract is enforceable.
Kabil Developments Corp. v. Mignot
Supreme Court of Oregon, 1977
279 Or. 151, 566 P.2d 505
Pg. 329
Plaintiff alleged oral agreement with defendant to provide helicopter services needed for a construction job that Kabil was contracted to perform for the U.S. Forest Service. The plaintiff's Vice President had a conversation with defendant's agent regarding the job, the equipment, time, and hourly rates. Plaintiff agreed that there was no contract at that time, but used the numbers in the bid for the project. Plaintiff's Vice President testified that at that time defendant's agent said they would do the job. "The manifestation of a party's intention, rather than the actual or real intention, is controlling."
McDonald v. Mobil Coal Producing, Inc.
Supreme Court of Wyoming, 1991
820 P.2d 986.
Pg. 334
Employee was rumored to have sexually harassed a female co-worker. The employee resigned, but that his resignation was a dismissal resulting from a meeting with company officials. The employee challenged the dismissal on the grounds that he signed an employee handbook, which provided that the company would give the employee an opportunity to be heard. An employee handbook will be treated as an employment contract if a party would reasonably rely on the handbook in the inducement of employment. Disclaimers must be conspicuous.
Moulton v. Kershaw
Supreme Court of Wisconsin, 1884
59 Wis. 316, 18 N.W. 172
Pg. 343
Defendant sent note to customers saying they were authorized to offer Michigan fine salt in full car-load lots of 80-95 barrels for 85 cents a barrel, to be shipped per C & N.W. R.R. Co. only. The next day plaintiff replied with an order to ship 2,000 barrels. The following day the defendant withdrew the letter. In the sale of goods, for there to be a binding offer, the offeree must include the specific quantity being offered.
Joseph Martin, Jr. Delicatessen v. Schumacher
Court of Appeals of New York, 1981
52 N.Y.2d 105, 436 N.Y.S.2d 247, 417 N.E.2d 541
Pg. 346
Landlord and tenant had a five year lease, which started at $500 and ended at $650 on the fifth year. The contract provided that the tenant may renew at the end of year five for an additional five years at an amount to be agreed upon. An agreement to agree is indefinite and not a contract.
Empro Mfg. Co. v. Ball-Co Mfg., Inc.
United States Court of Appeals, Seventh Circuit, 1989
870 F.2d 423
Pg. 352
Empro and Ball-Co entered into a letter-of-intent for an asset sale. Ball-Co balked, and started looking for other buyers because Empro wouldn't agree to have the transacton secured by the land under the plant. Letters of intent are not binding unless they incorporate all the terms that are to be found in a contract.
Wheeler v. White
Supreme Court of Texas, 1965
398 S.W.2d 93
Pg. 355
Plaintiff claimed that defendant breached a contract to secure a loan or furnish the money necessary to pay for improvements made to plaintiff's land. The defendant claimed the contract was unenforceable because it lacked essential elements. Where one party has by his words or conduct made to the other a promise or assurance which was intended to affect the legal relations between them and to be acted on accordingly, then, once the other party has taken him at his word and acted on it, the party who gave the promise cannot afterward be allowed to revert to the previous relationship as if no such promise had been made.
Raffles v. Wichelhaus
Court of Exchequer, 1864
2 Hurlstone & Coltman 906
Pg. 358
Plaintiff and defendant contracted for the shipment of bales of cotton departing from Bombay. The plaintiff alleged that the shipment was intended to depart from a ship called the "Peerless" in October, but the defendant made the shipment on another ship also called the "Peerless" in December. In the absence of evidence to the contrary, ambiguities in contracts will not be enforced.
Cobaugh v. Klick-Lewis, Inc.
Superior Court of Pennsylvania, 1989
385 Pa.Super. 587, 561 A.2d 1248
Pg. 363
". . .Amos Cobaugh was playing in the East End Open Golf Tournament on the Fairview Golf Course in Cornwall, Lebanon County. When he arrived at the ninth tee he found a new Chevrolet Beretta, together with signs which proclaimed: 'HOLE-IN-ONE Wins this 1988 Chevrolet Beretta GT Courtesy of KLICK-LEWIS Buick Chevy Pontiac $ 49.00 OVER FACTORY INVOICE in Palmyra.' Cobaugh aced the ninth hole and attempted to claim his prize. Klick-Lewis refused to deliver the car. . ." "[t]he promoter of [a prize-winning] contest, by making public the conditions and rules of the contest, makes an offer, and if before the offer is withdrawn another person acts upon it, the promoter is bound to perform his promise."
Allied Steel & Conveyors, Inc. v. Ford Motor Co.
United States Court of Appeals, Sixth Circuit, 1960
277 F.2d 907
Pg. 369
Ford ordered from Allied numerous items of machinery and equipment. The order was submitted on a written form that contained a provision making Allied liable for any injuries occurring as a result of negligence by Allied employees or Ford employees. The question arose as to whether Allied had accepted that provision of the contract. If an offeror merely suggests a permitted method of acceptance, other methods of acceptance are not precluded. Moreover, it is equally well settled that if the offer requests a return promise and the offeree without making the promise actually does or tenders what he was requested to promise to do, there is a contract if such performance is completed or tendered within the time allowable for accepting by making a promise. In such a case a tender operates as a promise to render complete performance.
Davis v. Jacoby
Supreme Court of California, 1934
1 Cal.2d 370, 34 P.2d 1026
Pg. 372
Plaintiff had lived with Aunt and Uncle while growing up and maintained a close relationship with them after her marriage. After a time, the Aunt and Uncle fell ill and the Uncle wrote to plaintiff promising his inheritance if she would come and take care of them. Plaintiff agreed to come, but Uncle died before she could arrive. Plaintiff took care of Aunt until she died, but then found out that will said inheritance should go to someone else. Uncle's promise and plaintiff's action based on that promise was a bilateral contract. Plaintiff accepted the contract by performing and thus the contract should be upheld.
Petterson v. Pattberg
Court of Appeals of New York, 1928
248 N.Y. 86, 161 N.E. 428
Pg. 378
Defendant made an offer to plaintiff that he would relieve the plaintiff of his mortgage at a discount rate if the plaintiff would pay the discounted amount by a certain date. Plaintiff responded to the offer by going to defendant's house to pay the discounted amount. When plaintiff arrived, the defendant informed him that he had sold his mortgage to someone else. The offer of the defendant was withdrawn before it became a binding promise. Thus, the contract is void.
Brackenbury v. Hodgkin
Supreme Judicial Court of Maine, 1917
116 Me. 399, 102 A. 106
Pg. 385
An aged widow wrote to her daughter in Missouri and requested her to come to Maine to take care of her in her old age. The widow wrote that if the daughter would come that she would be given use and the income generated by the widow's premises. The daughter came, relying on the promise, but after a few weeks discord occurred between them and the widow kicked the daughter and her husband out of the house. The daughter justifiably relied on the promise by her mother the widow, and performed her side of the agreement. Therefore, the daughter should be entitled to a remedy at law.
Thomason v. Bescher
Supreme Court of North Carolina, 1918
176 N.C. 622, 97 S.E. 654
Pg. 392
The question arose as to what import and consideration should be given a covenant under seal. Should such an instrument be held to be a binding agreement enforceable in all actions before the common-law courts. The defendants are bound by their covenant under seal and not at liberty to withdraw their offer before the expiration of the time agreed upon.
James Baird Co. v. Gimbel Bros.
United States Court of Appeals, Second Circuit, 1933
64 F.2d 344
Pg. 395
Defendant sent out offer to several contractors to supply linoleum for a construction project. A few days afterward, the defendant realized it had made a mistake on the specifications of the contract and withdrew its offer. The plaintiff, however, had already sent in a bid on the contract. Plaintiff's bid was accepted, but defendant declined to recognize the existence of a contract. Defendant withdrew the offer before the plaintiff had accepted. Thus, the defendant legally withdrew from the contract. The plaintiff could also not recover under promissory estoppel, because the contract lacked consideration.
Drennan v. Star Paving Co.
Supreme Court of California, 1958
51 Cal.2d 409, 333 P.2d 757
Pg. 399
Contractor received a bid from a sub-contractor to complete a construction job. Contractor used the sub-contractor's bid in formulating his own bid for the project. Contractor was awarded the project. After being awarded the project, the sub-contractor came to contractor and let the contractor know that it could no longer complete the job for what it had said that it could. As a result, contractor was forced to find another sub-contractor to do the job at a higher price. The contractor justifiably relied on the sub-contractor's promise to the contractor's detriment. Thus, the sub-contractor is responsible for the loss.
Hoffman v. Red Owl Stores, Inc.
Supreme Court of Wisconsin, 1965
26 Wis.2d 683, 133 N.W.2d 267
Pg. 409
Plaintiff (Hoffman) entered into a franchise agreement with defendant (Red Owl Stores, Inc.) to set up a grocery supermarket. Plaintiff informed defendant that he only had $18,000 capital and defendant assured plaintiff that this would be sufficient to "set him up in a Red Owl agency store." Relying on the promise, plaintiff sold his business and incurred expenses in establishing an agency store. Defendant then changed the terms of the deal, eventually requiring $34,000 in capital. Plaintiff then told defendant he could not go along with the proposal and terminated the negotiations between the parties. Sec. 90 of Restatement, 1 Contracts, provides: "A promise which the promisor should reasonably expect to induce action or forbearance of a definite and substantial character on the part of the promisee and which does induce such action or forbearance is binding if injustice can be avoided only by enforcement of the promise."
Livingston v. Evans
Supreme Court of Alberta, 1925
[1925] 4 D.L.R. 769
Pg. 416
The defendant, Evans, offered to sell the land in question for $1,800. The plaintiff produced a counter-offer of $1,600. The defendant wrote back to the plaintiff, rejecting the counter-offer, stating that they could not reduce the price. The plaintiff then accepted the original offer. When an offer has been rejected it is thereby ended and it cannot be afterwards accepted without the consent of him who made it.
Idaho Power Co. v. Westinghouse Electric Corp.
United States Court of Appeals, Ninth Circuit, 1979
596 F.2d 924
Pg. 422
Idaho Power Co. sent an inquiry to Westinghouse asking its price for a three-phase voltage regulator. Westinghouse responded with a price quotation which provided that it was subject to the terms and conditions on the back of the form. Idaho Power responded with a purchase order describing the regulator and referring to Westinghouse's price quotation. Idaho Power's order form provided that acceptance of the order constituted an acceptance of Idaho Power's conditions, which did not limit Westinghouse's liability. The two companies thus presented contradictory acceptance terms through their form contracts. A definite and seasonable expression of acceptance . . . which is sent within a reasonable time operates as an acceptance even though it states terms additional to or different from those offered or agreed upon, unless acceptance is expressly made conditional on assent to the additional or different terms. U.C.C. Section 2-207(1).
ProCD, Inc. v. Zeidenberg
United States Court of Appeals, Seventh Circuit, 1996
86 F.3d 1447
Pg. 430
The plaintiff was a software publisher that sold a product to both consumers and businesses. The price consumers paid was significantly less than the price a business was required to pay. To enforce the prices and usage, the plaintiff utilized a license which limited the usage of the product. The defendant reverse engineered the software and planned to offer the software for free to users. Shrink-wrap licenses are enforceable unless their terms are objectionable on the grounds applicable to contracts generally.
Morrison v. Thoelke
District Court of Appeals of Florida, 1963
155 So.2d 889
Pg. 437
Appellants were purchasers in a land transaction. The appellants executed a contract for the sale of land on November 26, 1957 and placed it in the mail the next day. After mailing the contract, but prior to its receipt, appellees repudiated the contract. The acceptance of a contract is effective when the contract has been mailed out or dispatched even if the contract is repudiated before it is received.
Hobbs v. Massasoit Whip Co.
Supreme Judicial Court of Massachusetts, 1893
158 Mass. 194, 33 N.E. 495
Pg. 448
Plaintiff instituted an action for the price of eel skins, which were sent by the plaintiff to the defendant, and kept by the defendant some months until they were destroyed. Plaintiff received no notice that the defendant declined to keep the skins. Conduct which imports acceptance or assent is acceptance or assent in the view of the law, whatever may have been the actual state of mind of the party.
Morone v. Morone
Court of Appeals of New York, 1980
50 N.Y.2d 481, 429 N.Y.S.2d 592, 413 N.E.2d 1154
Pg. 452
Plaintiff alleged that she and defendant lived together and held themselves out to the community as husband and wife and that defendant acknowledges that the two children born of the relationship are his. She sought recovery for "housewifely" duties within a marital-type arrangement on express and implied contract theories. "[A]n express agreement between unmarried persons living together is as enforceable as though they were not living together . . . , provided only that illicit sexual relations were not "part of the consideration of the contract". . . . The theory of these cases is that while cohabitation without marriage does not give rise to the property and financial rights which normally attend the marital relation, neither does cohabitation disable the parties from making an agreement within the normal rules of contract law. . . ."
Mitchill v. Lath
Court of Appeals of New York, 1928
247 N.Y. 377, 160 N.E. 646
Pg. 457
Plaintiff agreed in writing to purchase land. The defendant agreed pursuant to an oral agreement, to remove an ice house. Oral agreements can vary written agreements when (1) the agreement is collateral and has separate consideration; (2) it doesn't contradict the writing; and (3) the agreement wouldn't ordinarily be adopted in writing.
Hatley v. Stafford
Supreme Court of Oregon, 1978
284 Or. 523, 588 P.2d 603
Pg. 464
Plaintiff sued in trespass to recover land that was leased to the defendant for the purpose of growing wheat. The parties agreed in writing that the defendant could repurchase the land. The issue was that the repurchase price was significantly lower than the value of the land, because defendant had grown a crop of wheat on the land. The plaintiff sought to introduce parol evidence concerning the duration of the buy-out provision. The Court may take into account circumstances surrounding a transaction to determine whether the writing is intended to incorporate the entire agremeeent and whether parol evidence may be used to determine the parties' intent.
Long Island Trust Co. v. International Inst. for Packaging Educ., Ltd.
Court of Appeals of New York, 1976
38 N.Y.2d 493, 381 N.Y.S.2d 445, 344 N.E.2d 377
Pg. 477
Appellants were personal guarantors on behalf of a corporation, which was loaned money by a bank. The loan note required the signature of all five guarantors. Only four signed a subsequent agreement. The appellants claimed that parol evidence was needed to show that the agreement required the endorsement of all the parties that guaranteed the loan. "Where the terms of the conditional delivery have not been complied with, the instrument is unenforceable and parol evidence is admissible to show that the delivery of the instrument to the payee was a conditional delivery. . . . Thus, an agreement that any renewal notes would be endorsed, and, if proved, would make the note unenforceable against the guarantors whose dleivery was conditional upon the procurement of all such endorsements."
Lipsit v. Leonard
Supreme Court of New Jersey, 1974
64 N.J. 276, 315 A.2d 25
Pg. 485
Plaintiff was induced to engage in an employment agreement by a discussion surrounding equity in a corporation wholly owned by the defendant / employer. Parol evidence is admissable to show the presence of a fraudulent oral promise and misrepresentation, which induced the agreement.
LaFazia v. Howe
Supreme Court of Rhode Island, 1990
575 A.2d 182
Pg. 490
Defendants entered into an agreement with plaintiffs to purchase their delicatessen. The plaintiffs induced the defendants to buy the deli by falsely representing that the business was successful. The contract had a merger agreement, which stated that the writing was the etire agreement between the two parties and that the purchaser had bought the business "as is." Specific merger agreements preclude parol evidence even when their has been fraud.
Hoffman v. Chapman
Court of Appeals of Maryland, 1943
182 Md. 208, 34 A.2d 438
Pg. 497
Parties entered into a contract for the sale of land. The contract was for the sale of part of a lot. The recorder of the deed recorded the sale, so that the entire parcel was conveyed. Whenever it is alleged that fraud, accident or mistake occurred in the making of a contract, the court will admit parol evidence.
Pacific Gas & Elec. Co. v. G.W. Thomas Drayage & Rigging Co.
Supreme Court of California, 1968
69 Cal.2d 33, 69 Cal.Rptr. 561, 442 P.2d 641
Pg. 504
The defendant entered into a contract with plaintiff to remove and replace the upper cover of plaintiff's steam turbine. The defendant agreed to perform the work at own risk and "indemnify" plaintiff. During the work the cover fell, causing damages. Extrinsic Evidence is permissible when the court considers evidence and there is a fair chance that there are differing interpretations.
Mundy v. Lumberman's Mut. Cas. Co.
United States Court of Appeals, First Circuit, 1986
783 F.2d 21
Pg. 514
Thomas Mundy, an assistant district attorney of Suffolk County, Massachusetts, and his wife, Madelon, have sued their insurer in an effort to recover the actual value of some silver that was stolen from their home. Since the policy in effect at the time of the burglary limited recovery for loss of silverware to $1000, the company refused to pay them any more. The Mundys noted, however, that an earlier policy had not contained such a limit. They argued that the company did not give them adequate notice of the change when it sent them the policy renewal. An insured is binded by the terms of a renewal insurance policy as long as he receives it.
Henningsen v. Bloomfield Motors, Inc.
Supreme Court of New Jersey, 1960
32 N.J. 358, 161 A.2d 69
Pg. 520
Mrs. Henningsen was driving her new Chrysler when the steering wheel spun in her hands causing her to veer and crash into a highway sign. Mr. Henningsen (plaintiff) sued Bloomfield Motors, Inc. (defendant) to recover consequential losses, joining his wife in a suit against Bloomfield and Chrysler. Mr. Henningsen's theory was based on alleged breach of an implied warranty of merchantability imposed by the Uniform Sales Act. The defense relied on a disclaimer of the warranty. An express warranty, which limits a manufacturer's liability to replace defective parts, is void, as it is against public policy.
Richards v. Richards
Supreme Court of Wisconsin, 1994
181 Wis.2d 1007, 513 N.W.2d 118
Pg. 527
Plaintiff was the wife of a truck driver. To ride along with her husband, plaintiff was required to sign a "Passenger Authorization" form used by the company for which the plaintiff's husband worked. The "Passenger Authorization" form served as a general release of all claims against the company. Exculpatory contracts, like the one at issue in this case, are void as against public policy.
Broemmer v. Abortion Services of Phoenix
Supreme Court of Arizona, 1992
173 Ariz. 148, 840 P.2d 1013
Pg. 531
Melinda Broemmer (plaintiff) appealed a decision that held that an "Agreeement to Arbitrate" which she signed prior to undergoing a clinical abortion was an enforceable, albeit an adhesive, contract. An adhesion contract is a contract offered to consumers of goods and services on essentially a "take it or leave it" basis without affording the consumer a realistic opportunity to bargain and under such conditions that the consumer cannot obtain the desired product or services except by acquiescing in the form contract. To determine whether contracts of adhesion are enforceable, the Court looks at two factors: (1) the reasonable expectations of the adhering party; and (2) whether the contract is unconscionable.
Halbman v. Lemke
Supreme Court of Wisconsin, 1980
99 Wis.2d 241, 298 N.W.2d 562
Pg. 543
Lemke agreed to sell Halbman (a minor) a 1968 Oldsmobile for $1,250. Halbman paid Lemke $1,000 cash and took possession of the car. Halbman agreed to pay $25 per week until the remainder of the purchase price was paid off, upon which time he would take title to the car. Halbman disaffirmed the contract and sued for return of the $1,100 he paid toward the purchase of the vehicle. A minor is entitled disaffirm a contract for the purchase of items which are not necessities. A minor who disaffirms a contract is entitled to recover all consideration he had conferred incident to the transaction. In return the minor is expected to restore as much of the consideration as, at the time of disaffirmance, remains in the minor's possession.
Odorizzi v. Bloomfield School Dist.
California District Court of Appeal, 1966
246 Cal.App.2d 123, 54 Cal.Rptr. 533
Pg. 557
Plaintiff, a school teacher, was arrested for homosexuality and subsequently resigned. He alleged that he was coerced into resigned by the high school principal and superintendent of schools. He sought to rescind his resignation on the grounds that it was made under duress, menace, fraud, mistake, and undue influence. "To make a good contract a man must be a free agent. Pressure of whatever sort which overpowers the will without convincing the judgment is a species of restraint under which no valid contract can be made. Importunity or threats, if carried to the degree in which the free play of a man's will is overborne, constitute undue influence, although no force is used or threatened. A party may be led but not driven, and his acts must be the offspring of his own volition and not the record of someone else's."
Austin Instrument, Inc. v. Loral Corp.
Court of Appeals of New York, 1971
29 N.Y.2d 124, 324 N.Y.S.2d 22, 272 N.E.2d 533
Pg. 562
After being awarded a contract for radar equipment with the Navy, the defendant entered into a contract with the plaintiff, a component manufacturer. Subsequently, the defendant was awarded a second contract with the Navy. The plaintiff threatened to breach the contract if they were not awarded a contract as the exclusive component supplier on the second contract. Economic duress consists of (1) a wrongful threat; (2) an inability to cover; and (3) the lack of free will.
Alaska Packers' Ass'n v. Domenico
United States Court of Appeals, Ninth Circuit, 1902
117 F. 99
Pg. 569
Sailors and fisherman agreed to work for the defendant on his ship in Alaska. While the ship was out to sea, the workers threatened to quit if they did not receive a raise. The defendant agreed to the raise, but when they returned from fishing, he refused to pay the additional wages. " . . . [W]hen a party merely does what he has already obligated himself to do, he cannot demand an additional compensation therefor; and although, by taking advantage of the necessities of his adversary, he obtains a promise for more, the law will regard it as nudum pactum, and will not lend its process to aid in the wrong." The court held that there was no consideration for the additional promise.
Brian Constr. & Dev. Co. v. Brighenti
Supreme Court of Connecticut, 1978
176 Conn. 162, 405 A.2d 72
Pg. 573
Plaintiff and defendant contracted for excavation work. During the course of performing the excavation work, the defendant discovered considerable debris below the surface, which would make the job considerably more difficult and costly. Defendant refused to perform. Defendant and plaintiff entered into a subsequent oral contract for the excavation work that compensated defendant an additional ten percent. Subsequently, the defendant ceased working on the contract and the plaintiff was forced to complete the work incurring damages. The Court will enforce a subsequent agreement which includes an additional obligation not specified in the original contract and for which there is additional compensation.
Universal Builders, Inc. v. Moon Motor Lodge, Inc.
Supreme Court of Pennsylvania, 1968
430 Pa. 550, 244 A.2d 10
Pg. 580
Plaintiff entered into a contract with Moon Motor Lodge to build a hotel and restaurant. Plaintiff's masonry sub-contractor made errors, which defendant demanded plaintiff answer for by paying $5,000 and doing additional work for free. The contract between the parties provided that all additional work outside the scope of the contract required a written change order. The defendant orally requested additional work done. Requirements that change orders be only in writing can be waived orally.
Hackley v. Headley
Supreme Court of Michigan, 1881
45 Mich. 569, 8 N.W. 511
Pg. 586
Headley sued Hackley to recover compensation on a contract which required Headly to cut and deliver logs. The plaintiff claimed he was owed $6,200 on the contract. Defendant offered plaintiff $4,000 and said he could sue for the rest. Plaintiff could not afford to sue and needed the money, so he accepted the note and signed a note discharging the defendant from any further liability. The plaintiff sued under a theory of duress. Duress exists when one by the unlawful act of another is induced to make a contract or perform some act under circumstances which deprive him of the exercise of free will.
Marton Remodeling v. Jensen
Supreme Court of Utah, 1985
706 P.2d 607
Pg. 590
Marton performed work under a "time and materials" contract for Jensen. Marton presented Jensen with a bill for $6,500, which Jensen thought was excessive, prompting Jensen to offer $4,000. Marton refused and Jensen sent Marton a check for $5,000 with a note stipulating that endorsement of the check constitutes full and final satisfaction of any and all claims. Marton cashed the check and sued for the $1,538 balance plus punitive damages and attorneys fees. Jensen contended that Marton's cashing of the check constituted accord and satisfaction that could not be altered by the words added to the condition placed thereon by Jensen. When a bona fide dispute arises and a check is tendered in full payment of an unliquidated claim, the creditor may not disregard the condition attached.
Denney v. Reppert
Court of Appeals of Kentucky, 1968
432 S.W.2d 647
Pg. 598
A reward was offered by a bank, which had been robbed, for the arrest and conviction of each bank robber. The question was whether the employees of the robbed bank were eligible to receive or share in the reward. When a reward is offered to the general public for the performance of some specified act, such reward may be claimed by any person who performs such act, with the exception of agents, employes and public officials who are acting within the scope of their employment or official duties.
Jackson v. Seymour
Supreme Court of Appeals of Virginia, 1952
193 Va. 735, 71 S.E.2d 181
Pg. 601
Plaintiff asked defendant, her brother, to purchase land from her. Both parties were under the impression the land had very little value. Subsequent to the transaction, the defendant discovered that there was valuable timber on the land. Shortly after he proceeded to sell the lumber and made a profit. The plaintiff offered to buy-back the land from the defendant. The defendant refused to sell-back the land. If there is a mutual mistake, the court may find constructive fraud if (1) there is a fiduciary or confidential relationship between the parties; (2) there is reliance by the plaintiff upon the advice and judgment of the defendant; (3) the transaction results in a gross inadequacy of the price paid and the fair market value; and (4) there is an offer to restore the purchase price and rescind the transaction and the defendant rejects the offer.
Sherwood v. Walker
Supreme Court of Michigan, 1887
66 Mich. 568, 33 N.W. 919
Pg. 606
Plaintiff purchased a cow that was believed to barren. However, soon after the purchase, the defendant realized the cow was with calf. Sherwood illustrates the older test of mutual mistake, which is no longer good law. The older test holds that ". . . if there is a difference or misapprehension as to the substance of the thing bargained for, if the thing actually delivered or received is different in substance from the thing bargained for and intended to be sold, then there is no contract."
Elsinore Union Elementary School Dist. v. Kastorff
Supreme Court of California, 1960
54 Cal.2d 380, 6 Cal.Rptr. 1, 353 P.2d 713
Pg. 616
Defendant, a building contractor, submitted a bid to make additions to plaintiff's school buildings. The plaintiff realized that he produced a bid that was too low due to a clerical error and promptly rescinded his bid. Unilateral mistakes will result in avoidance if they are not the result of shirking a legal duty and the contract would be unconscionable to enforce.
Tribe v. Peterson
Supreme Court of Wyoming, 1998
964 P.2d 1238
Pg. 625
Plaintiff / appellant, Steve Tribe, purchased his first horse from appellees, the Petersons. Tribe asserted that the appellees expressly guaranteed that the horse would never buck and brought suit for breach of warranty when the horse bucked him from the saddle, shattering his left wrist. Plaintiff lost a jury trial on his claims. "In order for an express warranty to exist, there must be some positive and unequivocal statement concerning the thing sold which is relied on by the buyer and which is understood to be an assertion concerning the items sold and not an opinion. . . . A representation which expresses the seller's opinion, belief, judgment or estimate does not constitute an express warranty."
Hinson v. Jefferson
Supreme Court of North Carolina, 1975
287 N.C. 422, 215 S.E.2d 102
Pg. 628
Plaintiff sued to recover the purchase price of a parcel of land and to cancel the deed. The plaintiff intended to build a house on the land, but was unable because the land had drainage problems which would require improvements to a nearby swamp and creek at a prospective cost of several hundred thousands of dollars. The drainage problems were not known to either the plaintiff or defendants at the time of the sale. In every contract for the sale of land, the vendor shall be held to impliedly warrant to the vendee that at the time of passing the deed, the land is sufficiently free from structural defects. An implied warranty cannot be held to extend to defects which are visible or should be visible to a reasonable man.
Johnson v. Healy
Supreme Court of Connecticut, 1978
176 Conn. 97, 405 A.2d 54
Pg. 635
The defendant was unaware of defects in the substructure of a building that he sold to the plaintiff and represented to the plaintiff that the house was made of the best material. Even if it is innocent, a material misrepresentation is voidable if a party reasonably relies on it to their detriment.
Cushman v. Kirby
Supreme Court of Vermont, 1987
148 Vt. 571, 536 A.2d 550
Pg. 640
The plaintiffs entered into negotiations to buy a house from the defendants, a husband and wife. The wife represented the house's water supply was hard and the husband did not disclose anything about the water. After moving into the house, the plaintiff was informed that there was sulfur in the water. Contracts are voidable when the other party makes an intentional misrepresentation and has a duty to disclose, but doesn't.
Taylor v. Caldwell
King's Bench, 1863
3 Best & S. 826
Pg. 648
Parties contracted for the use of a music hall. A fire destroyed the music hall and the plaintiff was unable to use the hall for which they had contracted. Neither party was at fault for the fire. When there is an unforeseen accident, a party will not be held to performance if they are not able to perform as a result of such accident.
Tompkins v. Dudley
Court of Appeals of New York, 1862
25 N.Y. 272
Pg. 652
Plaintiffs sued as trustees of a school district for money they had spent building a school, which burned down before it was entirely built. When a party is prevented by the act of God from discharging a duty created by the law, he is excused; but when he engages unconditionally, by express contract, to do an act, performance is not excused by inevitable accident or other unforeseen contingency not within his control.
Carroll v. Bowersock
Supreme Court of Kansas, 1917
100 Kan. 270, 164 P. 143
Pg. 654
Plaintiff began construction of a concrete floor in defendant's warehouse. Subsequently, the warehouse was completely destroyed by fire. "[T]he liability of the owner . . . should be measured by the amount of contract work done which, at the time of the destruction of the structure, had become so far identified with it as that but for the destruction it would have inured to him as contemplated by the contract.
Kel Kim Corp. v. Central Markets, Inc.
Court of Appeals of New York, 1987
70 N.Y.2d 900, 524 N.Y.S.2d 384, 519 N.E.2d 295
Pg. 663
Plaintiff leased a vacant supermarket from defendant to use as a roller skating rink. The plaintiff was required to maintain liability insurance on the property. During the course of the contract, there was a liability insurance market crisis, which prompted the plaintiff's insurer to send a letter notifying the plaintiff of the cancellation of the policy. The defendant instructed the plaintiff to vacate the premises. The plaintiff brought a declaratory action against the defendant, alleging impossibility because of the state of the insurance market. "Impossibility excuses a party's performance only when the destruction of the subject matter of the contract or the means of performance makes performance objectively impossible. Moreover, the impossibility must be produced by an unanticipated event that could not have been foreseen or guarded against in the contract."
Bunge Corp. v. Recker
United States Court of Appeals, Eight Circuit, 1975.
519 F.2d 449
Pg. 665
Appellant, a grain dealer, and Appellee, a farmer entered into a contract for the soybeans. The contract provided that the soy beans must be farmed within the continental United States. Winter weather made it impossible for the appellee to harvest the soybeans on his farm. The appellee failed to deliver the soy beans. In the event of the destruction of the subject matter of a contract, to be excused from performance, the specific source of the subject matter must be contemplated or specified by both parties to the contract.
American Trading & Prod. Corp. v. Shell Int'l Marine, Ltd.
United States Court of Appeals, Second Circuit, 1972
453 F.2d 939
Pg. 669
Due to war in the Middle East, the owner of a chartered ship was forced to change his route while delivering lube oil from New York to Bombay. The alternative route doubled the length of the trip, resulting in a higher cost for the owner. The owner of the ship sued for additional compensation. The doctrine of commercial impracticability requires the plaintiff to establish an unreasonable difficulty or extreme expense to excuse performance.
Krell v. Henry
Court of Appeal, 1903
2 K.B. 740
Pg. 675
Henry rented a flat from Krell so that he could have a good view of the coronation ceremony for Edward VII. The ceremony was cancelled and Henry refused to pay for the flat, so Krell sued. The doctrine of frustration may excuse performance when the underlying value or purpose of the contract has been destroyed.
Lloyd v. Murphy
Supreme Court of California, 1944
25 Cal.2d 48, 153 P.2d 47
Pg. 681
Plaintiff leased defendant premises in Beverly Hills to sell new cars. The government restricted the sale of new cars. Defendant repudiated the lease and plaintiff sued for declaratory relief and damages. To invoke the doctrine of frustration a party must show (1) that the change in circumstances has made performance different from what was reasonably expected; (2) that the risk was unforeseeable; and (3) that the underlying value of the bargained for exchange was destroyed by a supervening event.
Chase Precast Corp. v. John J. Paonessa Co.
Supreme Judicial Court of Massachusetts, 1991
409 Mass. 371, 566 N.E.2d 603
Pg. 684
Defendant entered into a contract with the Commonwealth of Massachusetts to replace a grass median strip on Route 128 with concrete. Citizens of Massachusetts protested and the government cancelled the project. Plaintiff had contracted with defendant to provide concrete median barriers. The doctrine of frustration may excuse performance when a party's principle purpose is substantially frustrated without his fault by the occurrence of an event the non-occurrence of which was a basic assumption on which the contract was made. Restatement (Second) Contracts § 265.
Woollums v. Horsley
Court of Appeals of Kentucky, 1892
93 Ky. 582, 20 S.W. 781
Pg. 688
Appellant, an elderly disabled recluse, entered into a contract with the appellee, a sophisticated business man, by which all the oils, gases and minerals on appellant's land were sold to appellee for an amount that was significantly less than it was worth. "A contract ought not to be carried into specific performance unless it be just and fair in all respects. When this relief is sought ethics are considered, and a court of equity will sometimes refuse to set aside a contract, and yet refuse its specific performance."
Waters v. Min Ltd.
Supreme Judicial Court of Massachusetts, 1992
412 Mass. 64, 587 N.E.2d 231
Pg. 695
Plaintiff entered into a contract with defendants to assign an annuity with a value of $189,000 in exchange for $50,000. Plaintiff brought suit to rescind the contract on the ground of unconscionability. If the sum total of the provisions of a contract drive too hard a bargain, a court of conscience will not assist its enforcement.
Brower v. Gateway 2000, Inc.
Supreme Court of New York, Appellate Division, 1998
246 A.D.2d 246, 676 N.Y.S.2d 569
Pg. 701
Appellants purchased computers and software from defendant and alleged deceptive sales practices in seven causes of action, including breach of warranty, breach of contract, fraud and unfair trade practices. Defendant moved to dismiss the claim because of a arbitration clause that is included in every shipment. The clause maintains that by keeping the system, the customers are agreeing to the terms and conditions included in the shipment. To sustain a theory of unconscionability, New York law requires a showing that a contract is both procedurally and substantively unconscionable when made.
Howard v. Federal Crop Ins. Corp.
United States Court of Appeals, Fourth Circuit, 1976
540 F.2d 695
Pg. 716
Plaintiff-appellants sued to recover for losses to their 1973 tobacco crop due to alleged rain damage. The crops were insured by defendant-appellee, Federal Crop Ins. Corp. (FCIC). The plaintiffs harvested and sold the depleted crop and timely filed notice and proof of loss with FCIC, but, prior to inspection by the adjuster for FCIC, the Howards had either plowed or disked under the tobacco fields to prepare the same for sowing a cover crop of rye to preserve the soil, which destroyed some stalks and in turn violated a portion of the policy which provides that the stalks on any acreage with respect to which a loss is claimed shall not be destroyed until the corporation makes an inspection. "Where it is doubtful whether words create a promise or an express condition, they are interpreted as creating a promise; but the same words may sometimes mean that a party promises a performance and that the other party's promise is conditional on that promise." Restatement of the Law of Contracts, Section 261.
Gray v. Gardner
Supreme Judicial Court of Massachusetts, 1821
17 Mass. 188
Pg. 721
Assumpsit on a written promise to plaintiff $5,198.87 "on the condition that if a greater quantity of sperm oil should arrive in whaling vessels at Nantucket and New Bedford, on or between the first day of April and the first day of October of the present year, both inclusive, than arrived at said places, in whaling vessels, on or within the same term of time the last year, then this obligation to be void." The dispute concerned whether a shipment arrived. If they wish to void the promise, the burden of proof is on the defendants to show that the event has happened or not happened.
Parsons v. Bristol Dev. Co.
Supreme Court of California, 1965
62 Cal.2d 861, 44 Cal.Rptr. 767, 402 P.2d 839
Pg. 728
Defendant Bristol Dev. Co. entered into a written contract with plaintiff engaging him as an architect to design an office building for a lot in Santa Ana and to assist in supervising construction. The dispute concerned Bristol's obligation to pay plaintiff under phase two of the contract. The contract provided that as a condition precedent Bristol had to obtain financing before it had to perform or pay plaintiff. "When 'payment of money is to be made from a specific fund, and not otherwise, the failure of such fund will defeat the right of recovery.' . . . 'A party who prevents fulfillment of a condition of his own obligation . . . cannot rely on such condition to defeat his liability.' . . ."
Mascioni v. I.B. Miller, Inc.
Court of Appeals of New York, 1933
261 N.Y. 1, 184 N.E. 473
Pg. 733
Plaintiffs (subcontractor) contracted with defendants to provide all materials and work for the erection of concrete walls. The defendant was not paid for the job, but the plaintiffs received a judgment against the defendant for the agreed price. "A provision for the payment of an obligation upon the happening of an event does not become absolute until the happening of the event.
Royal-Globe Ins. Co. v. Craven
Supreme Judicial Court of Massachusetts, 1992
411 Mass. 629, 585 N.E.2d 315
Pg. 737
Theresa Craven was injured in a hit and run accident. She was insured by Royal-Glob, who sought declaratory judgment that it was not liable because Craven's notice to Royal-Globe was not timely. The trial judge entered summary judgment for Craven. Royal-Globe appealed. "In order to work an estoppel it must appear that one has been induced by the conduct of another to do something different from what otherwise would have been done and which has resulted to his harm."
Gilbert v. Globe & Rutgers Fire Ins. Co.
Supre Court of Oregon, 1919
91 Or. 59, 174 P. 1161
Pg. 742
Plaintiff's beach cottage, which was insured by defendant, was totally destroyed by fire. Defendant's adjuster visited the site and fixed the loss at $1,531. Thereafter, the Astoria Lumber Co. brought an action against plaintiff in which a writ of garnishment was issued to compel defendant to pay Astoria the insurance proceeds due plaintiff for the fire loss. "[A] waiver is a voluntary relinquishment of a known right, while an estoppel consists of a preclusion which in law prevents a party from alleging or denying a fact in consequence of his own previous act, averment or denial. Hence, if a party relinquishes a known right, awarded him by contract, he cannot, without the consent of his adversary, reclaim it. But the ban of an estoppel may be lifted by the party against whom it is invoked, by the giving of proper notice."
Porter v. Harrington
Supreme Judicial Court of Massachusetts, 1928
262 Mass. 203, 159 N.E. 530
Pg. 749
Suit in equity whereby the plaintiff seeks to compel the defendants specifically to perform an agreement to convey land to him. Plaintiff agreed to buy and the defendants to sell two lots of land for a specified sum. Defendants, for the sums already paid, conveyed one of the lots to plaintiff, the contract remaining in force as to the other lot. The plaintiff made payments, but defaulted on the amount agreed upon. The defendants kept the money paid as liquidated damages. "Parties have a right to make a stated time for performance the essence of a contract. Such an agreement, when not waived either by words or conduct, is binding and will be given effect by courts of equity as well as of law."
Clark v. West
Court of Appeals of New York, 1908
193 N.Y. 349, 86 N.E. 1
Pg. 753
Plaintiff and defendant entered into a written contract under which the former was to write and prepare for publication for the latter a series of law books. After the plaintiff had completed a three volume work, the plaintiff claimed that the defendant had broken the contract by causing the book to be copyrighted in the name of a corporation, which was not a party to the contract, and he brought action to recover. Conditions can be waived, but cannot be breached.
Inman v. Clyde Hall Drilling Co.
Supreme Court of Alaska, 1962
369 P.2d 498
Pg. 757
Inman worked for the Clyde Hall Drilling Co. under an employment contract. His employment terminated and he commenced action against the company for a breach of contract, claiming that he was fired without justification. The issue was whether a provision in the contract, making written notice of a claim a condition precedent to recovery, was contrary to public policy. Making written notice of a claim a condition precedent to recovery is not contrary to public policy.
Aetna Cas. & Sur. Co. v. Murphy
Supreme Court of Connecticut, 1988
206 Conn. 409, 538 A.2d 219
Pg. 760
Plaintiff, Aetna Cas. & Sur. Co., brought an action against the defendant, George Murphy, to recover for damage he allegedly caused to a building it had insured. Defendant filed a third party complaint impleading his comprehensive liability insurer, Federal Ins. Co., Chubb Group, as third party defendant. Chubb successfully moved for summary judgment on the ground that Murphy, the defendant and third party plaintiff, had inexcusably and unreasonably delayed in complying with the notice provisions of the insurance contract. The defendant appealed. "If it can be shown that the insurer suffered no material prejudice from the delay, the nonoccurrence of the condition of timely notice may be excused because it is not, in Restatement terms [Sec. 229], 'a material part of the agreed exchange.'"
Grenier v. Compratt Constr. Co.
Supreme Court of Connecticut, 1983
189 Conn. 144, 454 A.2d 1289
Pg. 766
"This case concerns the effect of a provision in a construction contract that conditions payment upon a municipal official's certificate of performance. The plaintiffs, Frank Grenier, John Grenier and Eugene Grenier, brought an action against the defendant, Compratt Construction Company, to recover $ 25,500 which the defendant had agreed to pay for blasting work performed in the construction of certain roads. The defendants responded with an answer and a counterclaim seeking to enforce a liquidated damages clause in the contract. After a trial to the court, judgment was rendered for the plaintiffs in the amount of $ 23,000 together with interest and costs. The defendant has appealed." "[E]nforcement of a condition depends upon a finding of the intent of the parties as evidenced by their agreement . . . and that an agreement for personal services is normally subject to the condition that the person who is to render the services must be able to perform at the appointed time."
Nolan v. Whitney
Court of Appeals of New York, 1882
88 N.Y. 648
Pg. 771
". . . Michael Nolan, the plaintiffs' testator, entered into an agreement with the defendant to do the mason work in the erection of two buildings in the city of Brooklyn for the sum of $ 11,700, to be paid to him by her in installments as the work progressed. The last installment of $ 2,700 was to be paid thirty days after completion and acceptance of the work. The work was to be performed to the satisfaction and under the direction of M. J. Morrill, architect, to be testified by his certificate, and that was to be obtained before any payment could be required to be made. As the work progressed, all the installments were paid except the last, and Nolan, claiming that he had fully performed his agreement, commenced this action to recover that installment. The defendant defended the action upon the ground that Nolan had not fully performed his agreement according to its terms and requirements, and also upon the ground that he had not obtained the architect's certificate, as required by the agreement." "It is a general rule of law that a party must perform his contract before he can claim the consideration due him upon performance; but the performance need not in all cases be literal and exact."
Fursmidt v. Hotel Abbey Holding Corp.
Supreme Court of New York, Appellate Division, 1960
10 A.D.2d 447, 200 N.Y.S.2d 256
Pg. 773
Plaintiff and his father had been rendering valet and laundry services for the Hotel Abbey for a number of years. The plaintiff entered into a three-year contract with the defendant. Approximately eight months into the contract, the defendant informed the plaintiff that he was going to discontinue plaintiff's services. The plaintiff then removed from the premises and was paid $250 per month by a third party that resumed laundry services. The plaintiff claims that defendant had no right to terminate the contract. "Provisions in agreements calling for performance to the satisfaction of a party fall into two general categories. In contracts relating to operative fitness, utility or marketability the provision 'is construed as a matter of law as imposing only the requisite of satisfying a reasonable man.' . . . On the other hand a literal construction of the "satisfaction" provisions is made where the agreements provide for performance involving "fancy, taste, sensibility, or judgment" of the party for whose benefit it was made. . . ."
Nichols v. Raynbred
Court of King's Bench, 1615
Hobart, 88
Pg. 777
Nichols agreed to sell and deliver a cow to Raynbred, who agreed to pay 50 shillings. Neither party performed and Nichols brought an assumpsit against Raynbred. Promises must be enforced. This case illustrates the earlier doctrine of enforcing promises, as Raynbred has to pay 50 shillings and all he gets is to assert a claim against Nichols.
Kingston v. Preston
Court of King's Bench, 1773
2 Doug. 689
Pg. 780
Action to recover debt for nonperformance of covenants contained in certain articles of agreement between plaintiff and defendant. There are three kinds of covenants: (1) mutual and independent covenants, where either party may recover damages from the other, for the injury he may have received by a breach of the covenants in his favor, and where it is no excuse for the defendant to allege a breach of the covenants on the part of the plaintiff; (2) covenants which are conditions and dependent, in which the performance of one depends on the prior performance of another, and, therefore, till this prior condition is performed, the other party is not liable to an action on his covenant; and (3) mutual conditions to be performed at the same time; and, in these, if one party was ready, and offered, to perform his part, and the other neglected, or refused to perform his, he who was ready, and offered, has fulfilled his engagement, and may maintain an action for the default of the other; though it is not certain that either is obliged to do the first act.
Price v. Van Lint
Supreme Court of New Mexico, 1941
46 N.M. 58, 120 P.2d 611
Pg. 783
The plaintiff, desiring to purchase a small tract of land and to construct a building thereon in which to conduct a business, negotiated with the defendant and the defendant advanced $134 to the plaintiff. The money, along with a deed were dispatched from Amsterdam. The deed was delayed, which resulted in a delay in the time in which the plaintiff could deliver the mortgage as security for the loan. The plaintiff began construction of the building and the defendant went on vacation for two months and then sought release of the contract. The plaintiff refused to release defendant from the contract and made demand for performance. "Where a contract contains mutual promises to pay money or perform some other act, and the time for performance for one party is to, and does, arrive before the time for performance by the other, the latter promise is an independent obligation."
Conley v. Pitney Bowes
United States Court of Appeals, Eigth Circuit, 1994
34 F.3d 714
Pg. 789
Conley initiated action against his employer, Pitney Bowes, after he had been denied continued disability benefits for a claim arising from injuries suffered in an automobile accident. At issue was whether a claimant must exhaust administrative procedures when, contrary to the requirements of his plan, the letter denying his benefits does not inform him of appeal procedures. "[I]n bilateral contracts for an agreed exchange of performances, . . . where one party's performance is to be rendered prior in time to that of the other, it is a constructive condition precedent to the latter's duty."
Ziehen v. Smith
Court of Appeals of New York, 1896
148 N.Y. 558, 42 N.E. 1080
Pg. 792
Plaintiff / vendee, under an executory contract for the sale of real estate, recovered damages from the defendant / vendor for a breach of contract to convey. "The general rule, however, to be deduced from an examination of the leading authorities seems to be that in cases where by the terms of the contract the acts of the parties are to be concurrent, it is the duty of him who seeks to maintain an action for a breach of the contract, either by way of damages for the non-performance, or for the recovery of money paid thereon, not only to be ready and willing to perform on his part, but he must demand performance from the other party."
Cohen v. Kranz
Court of Appeals of New York, 1963
12 N.Y.2d 242, 238 N.Y.S.2d 928, 189 N.E.2d 473
Pg. 796
Plaintiff contracted to purchase defendant's one-family house in Nassau County. The plaintiff's attorney later sent the defendant's attorney a letter demanding return of the deposit, as an investigation disclosed that the structure of the premises was not legal and therefore the title was not marketable. "While a vendee can recover his money paid on the contract from a vendor who defaults on law day without a showing of tender or even of willingness and ability to perform where the vendor's title is incurably defective, a tender and demand are required to put the vendor in default where his title could be cleared without difficulty in a reasonable time."
Beecher v. Conradt
Court of Appeals of New York, 1855
13 N.Y. 108
Pg. 800
In a real estate transaction, plaintiff promised to make five equal payments to defendant and defendant promised to convey the deed on the last payment. The buyer missed all five payments. Independent causes of action arise upon individual breaches of conditions in a contract. When there are multiple breaches of a condition, such as failure to make payment on several installments, a single cause of action arises. Thus, if the initial breaches are not predicate upon a condition and are not acted upon, but subsequent conditions are predicate upon a condition and the plaintiff does not bring a cause of action until the conditions which are predicate upon performance are breached, then the plaintiff must fulfill the condition upon which the subsequent condition is predicate to successfully show breach. In this case, the plaintiff could have sued on each individual installment. However, the plaintiff waited until the last payment was due. Therefore, the plaintiff needed to show that he conveyed the deed to successfully show a breach of contract.
Osborne v. Bullins
Supreme Court of Mississippi, 1989
549 So.2d 1337
Pg. 805
Osborne, a Ph.D., tendered a proposed contract to purchase property from Bullins, a grocery store owner with a seventh grade education. The parties signed a contract, but Osborne refused to close. Bullins brought suit demanding specific performance. "Specific performance has traditionally been regarded as a remedy for breach of contract that is not a matter of right but of sound judicial discretion. . . . One consideration is the adequacy of damages to protect the expectation interest of the injured party. . . ."
Stewart v. Newbury
Court of Appeals of New York, 1917
220 N.Y. 379, 115 N.E. 984
Pg. 808
The plaintiff, a contractor and builder, contracted to do work for defendants by letter, partners in a pipe fitting business. The contract did not stipulate the time or manner of payment. However, the plaintiff claimed that he had a telephone conversation with the defendant after the sending the letter where he said: "I will expect my payments in the usual manner. . . ." Plaintiff commenced work, defendants refused to pay the bill and work was discontinued. Defendants claimed that the work done was not in accordance with specifications and that the plaintiff voluntarily abandoned the work after their refusal to pay. "Where a contract is made to perform work and no agreement is made as to payment, the work must be substantially performed before payment can be demanded."
Tipton v. Feitner
Court of Appeals of New York, 1859
20 N.Y. 423
Pg. 812
Plaintiffs agreed with defendant, by parol, to sell the defendant 88 dressed hogs and a certain amount of live hogs. The dressed hogs were delivered, but not paid for. The plaintiff then did not deliver the live hogs, but attempted to recover for the dressed hogs. The defendant defended on the grounds that they failed to deliver the live hogs. "In contracts for the purchase of property, real or personal, where there is no stipulation for credit or delay on either side, the delivery of the property . . . and the payment of the price are each conditions of the other, and neither party can sue for a breach without having offered performance on his part."
Oshinsky v. Lorraine Mfg. Co.
United States Court of Appeals, Second Circuit, 1911
187 F. 120
Pg. 815
Plaintiff and defendant contracted for the delivery of "shirtings." Plaintiff contended that they delivered the "shirtings," but they were refused by the defendants, who justified their refusal on the grounds that the goods were offered after the time specified for delivery. In a contract where "time is of the essence," a purchaser is not bound to accept and pay for goods, unless the same are delivered or tendered on the day specified in the contract.
Bartus v. Riccardi
City Court of Utica, Oneida County, New York, 1967
55 Misc.2d 3, 284 N.Y.S.2d 222
Pg. 820
Plaintiff, a franchise representative of a hearing aid manufacturer, signed a contract to sell a hearing to defendant. The model the defendant was delivered was not the model that he was prescribed. Defendant returned the hearing aid. Plaintiff offered to get the prescribed model for defendant, and the defendant neither consented nor refused the offer. No mention was made by either party about canceling the contract. The defendant then, after receiving a letter from the manufacturer, decided that he did not want a hearing aid and refused to accept a replacement. The plaintiff sued for the balance due on the contract. UCC Section 2-508 allows a seller to cure a non-conforming delivery before the expiration of the contract time by notifying the buyer of his intention to so cure and by making delivery within the contract period. Subparagraph (2) of section 2-508 states that even where the contract period has expired and the buyer has rejected a nonconforming tender or has revoked an acceptance, the seller may "substitute a conforming tender" if he had "reasonable grounds to believe" that the nonconforming tender would be accepted, and "if he seasonably notifies the buyer" of his intention "to substitute a conforming tender."
Plateq Corp. of North Haven v. Machlett Labs, Inc.
Supreme Court of Connecticut, 1983
189 Conn. 433, 456 A.2d 786
Pg. 824
Defendant ordered two leadcovered steel tanks to be constructed by plaintiff according to specifications supplied by defendant. The parties understood that the tanks were required to be radiation-proof within certain federal guidelines. Any deficiencies that a post-installation test uncovered were to be cured by plaintiff. Plaintiff struggled to perform, but the defendant did no more than call certain deficiencies to plaintiff's attention. Performance was late, but substantially complete. Plaintiff gave notice that they were ready to deliver and then defendant sent a notice of total cancellation. Under UCC section 2-206(1), "acceptance of goods occurs when the buyer (a) after a reasonable opportunity to inspect the goods signifies to the seller . . . that he will take . . . them in spite of their nonconformity; or (b) fails to make an effective rejection."
Plante v. Jacobs
Supreme Court of Wisconsin, 1960
10 Wis.2d 567, 103 N.W.2d 296
Pg. 829
The Jacobs (defendants) entered into a written contract with plaintiff to build a house. The plaintiff was paid most of the money due on the contract, but a dispute arose during the course of construction and the defendants refused to continue payment and the plaintiff did not complete the house. There can be no recovery on the contract unless there is substantial performance. The test of substantial performance is whether the performance meets the essential purpose of the contract.
Worcester Heritage Society, Inc. v. Trussell
Court of Appeals of Massachusetts, 1991
31 Mass.App.Ct. 343, 577 N.E.2d 1009
Pg. 837
Plaintiff conveyed to defendant a historic house, upon which the defendant agreed to complete a historic renovation. The defendant lost his job and work on the house slowed. The plaintiff sued to rescind the contract. "In the absence of fraud, nothing less than conduct that amounts to an abrogation of the contract, or that goes to the essence of it, or takes away its foundation, can be made a ground for rescission of it by the other party."
Wholesale Sand & Gravel, Inc. v. Decker
Supreme Judicial Court of Maine, 1993
630 A.2d 710
Pg. 840
Wholesale Sand & Gravel agreed to construct a driveway on Decker's property. The contract contained no provision specifying a completion date. The only reference to time was the provision that required payment within 90 days. Wholesale's president told Decker that he believed he could complete the work in a week, but Wholesale ran into problems due to the wetness of the ground. Approximately a month later Decker telephoned Wholesale's president about the lack of progress. Wholesale's president said they would get right on it. A week later Decker terminated the contract and hired another contractor to finish the work. A party may terminate a contract if the other contracting party's conduct constitutes an anticipatory repudiation of the contract. "[A]nticipatory repudiation of a contract is 'a definite and unequivocal manifestation of intention on the part of the repudiator that he will not render the promised performance when the time fixed for it in the contract arrives.' . . . The manifestation of an intention to repudiate a contract may be made and communicated by either words or conduct. . . . The words or conduct evidencing such refusal or inability to perform, however, must be definite, unequivocal, and absolute."
Hathaway v. Sabin
Supreme Court of Vermont, 1891
63 Vt. 527, 22 A. 633
Pg. 846
The contract required the defendant to furnish a hall for a concert and to pay $75 after the entertainment. The plaintiff alleged readiness to perform and assigned as breach the defendant's failure to furnish a hall. "[A] party who becomes involved in difficulties for which he is not responsible, if ultimately able to perform, is not to be deprived of the benefits of his contract because of an assumption by the other party that the difficulties would prove insurmountable. . . ."
Cherwell-Ralli, Inc. v. Rytman Grain Co.
Supreme Court of Connecticut, 1980
180 Conn. 714, 433 A.2d 984
Pg. 854
The case concerned a contract for the sale of meal, where payment was due ten days after delivery and the buyer was consistently late on installment payments. Nevertheless, the seller continued to make deliveries. Eventually the buyer became concerned that the seller would continue to make deliveries because of problems with the seller's business and the significant increase in the market price of goods was such that the market price far exceeded the contract price. The seller orally promised that it would continue to make shipments if the buyer would make payments. The buyer sent seller a check in the amount of $9,825.60 to cover shipments through the following month. Several days later the buyer stopped payment on the check because he was told by a truck driver, not employed by seller, that the shipment would be his last load. The buyer made no further payments and the seller made no further deliveries. "A party to a sales contract may not suspend performance of its own for which it has 'already received the agreed return.'"
Greguhn v. Mutual of Omaha Ins. Co.
Supreme Court of Utah, 1969
23 Utah 2d 214, 461 P.2d 285
Pg. 857
While plaintiff was working as a brick mason, a scaffold fell from beneath him, resulting in injury. Plaintiff consulted an orthopedic surgeon, who concluded that plaintiff had a preexisting back condition known as "spondylolisthesis." Plaintiff was insured by Mutual of Omaha for accidents and United Benefit Life. Defendants made payments to plaintiff under the policies until they notified him that his ailment would be considered an "illness without confinement" and ceased payments. Plaintiff sued both insurers, contending that the accidental fall activated a latent condition and produced a total and permanent disability witihn the terms of the policies. Restatement of Contracts, Section 318, states, "In [a] unilateral contract for the payment [of money] in installments after default of one or more, no repudiation can amount to an anticipatory breach of the rest of the installments not yet due."
Reigart v. Fisher
Court of Appeals of Maryland, 1925
149 Md. 336, 131 A. 568
Pg. 865
The Fisher's contracted to convey land to Reigart, describing the property as "containing about 7 acres more or less. . . ." However, the actual quantity was around 4.764 acres. Reigart demanded return of his down payment and refused to proceed with the transaction. The Fisher's sued seeking specific performance. "Where there is a substantial defect with respect to the nature, character, situation, extent, or quality of the estate, which is unknown to the venee, and in regard to which he is not put upon inquiry, specific performance will not be decreed. . . . But the variance must be substantial and material. . . ."
Lawrence v. Fox
Court of Appeals of New York, 1859
20 N.Y. 268
Pg. 869
Holly loaned and advanced $300 to the defendant. The defendant promised to pay it to the plaintiff the next day. The defendant moved for a nonsuit on the grounds that the promise was void for want of consideration and that there was no privity between the plaintiff and defendant. 1. A promise to repay a loan, which was for the benefit of another, is valid. 2. "That where one person makes a promise to another for the benefit of a third person, that third person may maintain an action upon it."
Seaver v. Ransom
Court of Appeals of New York, 1918
224 N.Y. 233, 120 N.E. 639
Pg. 875
A dying woman intended in her will to giver her husband her home and give the niece a remainder. Her husband drafted the will and gave the remainder to the ASPCA. The woman was ill and signed the lease as prepared by her husband upon her husband's promise that he would provide for the niece in his will. There must be a close relationship between the beneficiary and the contracting parties.
Anderson v. Fox Hill Village Homeowners Corp.
Supreme Judicial Court of Massachusetts, 1997
424 Mass. 365, 676 N.E.2d 821
Pg. 885
Defendant, a tenant of property used as a retirement community, agreed in the lease to promptly remove snow and ice from all driveways and walkways. The plaintiff worked at the property and while getting out of her car she slipped and fell on patch of ice, which the defendant did nothing to remove. "[O]ne who assumes a duty under contract 'is liable to third persons not parties to the contract who are foreseeably exposed to danger and injured as a result of its negligent failure to carry out that obligation.'"
H.R. Moch Co. v. Rensselaer Water Co.
Court of Appeals of New York, 1928
247 N.Y. 160, 159 N.E. 896
Pg. 887
The defendant was contracted by the city to provide water to the city. The plaintiff owned a warehouse destroyed by fire. Defendant did not use enough water to suppress the fire and the plaintiff tried to sue the defendant for the defendant's failure to fulfill the provisions of the contract between it and the city. "No legal duty rests upon a city to supply its inhabitants with protection against fire. . . . That being so, a member of the public may not maintain an action . . . against one contracting with the city to furnish water at the hydrants, unless an intention appears that the promisor is to be answerable to individual members of the public as well as to the city for any loss ensuing from the failure to fulfill the promise."
Heyer v. Flaig
Supreme Court of California, 1969
70 Cal.2d 223, 74 Cal.Rptr. 225, 449 P.2d 161
Pg. 892
Plaintiff brought action for attorney negligence in connection with his drafting and advising on a will. The trial court held that the plaintiff had no cause of action because the statute of limitations was up to years after the will was drafted. "When an attorney undertakes to fulfill the testamentary instructions of his client, he realistically and in fact assumes a relationship not only with the client but also with the client's intended beneficiaries.
Robson v. Robson
United States District Court, N.D. Illinois, 1981
514 F.Supp. 99
Pg. 897
Father and son co-owned a business together. They drafted a contract that provided that in the event of the death of the son, the son's shares would go to the father and the father would pay the son's wife $500 per month from the proceeds of the company. Prior to the son's death, the father and son tried to modify the contract, so the son's wife wouldn't get the $500 per month after the son's death. After the son's death, the wife sued to enforce the provisions of the original contract. "A donee beneficiary of a contract is a third-party to whom the promised beneficial performance comes without cost as a donation or gift. . . [W]here the contract rights of a donee beneficiary have not yet vested and where the beneficiary has not detrimentally relied upon a promise contained in the contract, [the] Court will not subvert the intent of the contracting parties when it is clear that they desired to alter the terms of the contract."
Rouse v. United States
United States Court of Appeals, District of Columbia Circuit, 1954
215 F.2d 872
Pg. 903
Bessie Winston signed a promissory note to finance the installation of a heating plant in her home. Winston then sold the house to Rouse, who agreed to assume the debt. Winston defaulted on her not. The United States paid the bank, took an assignment of the note, demanded payment from Rouse, and sued him for $850 and interest. "[O]ne who promises to make a payement to the promisee's creditor can assert against the creditor any defense that the promisor could assert against the promisee."
Langel v. Betz
Court of Appeals of New York, 1928
250 N.Y. 159, 164 N.E. 890
Pg. 907
Plaintiff entered into a contract to sell certain real property. The vendees assigned the contract to Benedict, who in turn assigned it to Isidor Betz, the defendant. The assignment contained no delegation to the assignee of the performance of the assignor's duties. The plaintiff, as vendor, brought action against the defendant assignee for specific performance of the contract. "No promise of the assignee to assume the assignor's duties is to be inferred from the acceptance of an assignment of a bilateral contract, in the absence of circumstances surrounding the assignment itself which indicate a contrary intention."
Herzog v. Irace
Supreme Judicial Court of Maine, 1991
594 A.2d 1106
Pg. 910
Gary Jones was injured in a motorcycle accident and retained Irace and Lowry to represent him in a personal injury action. Subsequent to the motorcycle accdident, Jones dislocated his should and needed surgery to repair it. He didn't have the cash to get the surgery, so he assigned the proceeds of a settlement from his first accident to the doctor that performed the surgery. "In Maine, the transfer of a future right to proceeds from pending litigation has been recognized as a valid and enforceable equitable assignment. . . . An equitable assignment need not transfer the entire future right but rather may be a partial assignment of that right."
Cochran v. Taylor
Court of Appeals of New York, 1937
273 N.Y. 172, 7 N.E.2d 89
Pg. 914
An agreement was executed between defendant and Chenault, whereby defendant gave Chenault an option to buy certain real and personal property for $115,000. The defendant later notified Chenault that she revoked the offer to sell on the ground that the contract was without consideration and was obtained through duress, fraud and undue influence. Chenault then assigned his interest in the agreement to plaintiff. Plaintiff exercised the option and demanded performance. Plaintiff brought suit for specific performance when the defendant refused to perform. Unilateral contracts are assignable and turn into bilateral contracts when the assignee fulfills the conditions of the unilateral contract.
Macke Co. v. Pizza of Gaithersburg, Inc.
Court of Appeals of Maryland, 1970
259 Md. 479, 270 A.2d 645
Pg. 917
Four corporations under the common ownership of three individuals operated at six locations. The parties had a vendor relationship with Virginia Coffee Service, Inc., to service all locations. Virginia Coffee Service was acquired by The Macke Co. and the contracts were delegated to Macke. "[U]nder an executory bilateral contract [rights] may be assigned and delegated, subject to the exception that duties under a contract to provide personal services may never be delegated, nor rights be assigned under a contract where delectus personae was an ingredient of the bargain."
Allhusen v. Caristo Constr. Corp.
Court of Appeals of New York, 1952
303 N.Y. 446, 103 N.E.2d 891
Pg. 923
Defendant hired a subcontractor and forbid assignment of payment without permission. A party can forbid assignment of payment on a contract.
Ford Motor Credit Co. v. Morgan
Supreme Judicial Court of Massachusetts, 1989
404 Mass. 537, 536 N.E.2d 587
Pg. 932
The Morgans purchased a vehicle, which was financed by Ford Motor Credit Co. The vehicle had mechanical problems. The Morgans defaulted and Ford sued to recover money due on the installment contract and attorneys fees. The Morgans submitted a counterclaim, which tried to hold Ford Motor Credit liable for the dealer's actions. An assignee will not be liable for the assignor's wrongdoing.
Homer v. Shaw
Supreme Judicial Court of Massachusetts, 1912
212 Mass. 113, 98 N.E. 697
Pg. 938
Shaw (defendant), the general contractor for the construction of a section of the Tremont Street subway in Boston, subcontracted with Lancaster for excavation and iron work. Lancaster was advanced funding by Homer (plaintiff). Plaintiff's loan was security by a written assignment of sums due under the Lancaster's contract with the defendant. Lancaster notified defendant that he was not able to complete the contract due to financial difficulties. Defendant offered more money and testified that the original contract was entirely rescinded. Plaintiff alleged that there was no new contract, but merely a change in terms of payment. The trial judge gave judgment for defendant. "The parties, while they could not modify to the assignee's prejudice the terms of the contract assigned without the assignee's consent, or by a secret or fraudulent arrangement deprive him of the benefit of the assignment, were not precluded from entering into a new agreement if performance by the assignor had become impossible from unforeseen circumstances."