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Contracts

Dawson, Henderson, Harvey
7th Edition
ISBN: 1566625904
Page Case Name Citation Court
3 Hawkins v. McGee 84 N.H. 114, 146 A. 641 Supreme Court of New Hampshire, 1929
12 Groves v. John Wunder Co. 205 Minn. 163, 286 N.W. 235. Supreme Court of Minnesota, 1939
23 Acme Mills & Elevator Co. v. Johnson 141 Ky. 718, 133 S.W. 784 Court of Appeals of Kentucky, 1911
38 Louise Caroline Nursing Home, Inc. v. Dix Constr. Corp. 362 Mass. 306, 285 N.E.2d 904 Supreme Judicial Court of Massachusetts, 1972
41 Rockingham County v. Luten Bridge Co. 35 F.2d 301. United States Court of Appeals, Fourth Circuit, 1929.
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
56 Missouri Furnace Co. v. Cochran 8 F. 463 United States Circuit Court, W.D. Pennsylvania, 1881
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
69 Hadley v. Baxendale 9 Exch. 341. Court of Exchequer, 1854.
77 Valentine v. General American Credit, Inc. 420 Mich. 256, 362 N.W.2d 628 Supreme Court of Michigan, 1984
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
89 Chicago Coliseum v. Dempsey 265 Ill.App. 542 Appellate Court of Illinois, First District, 1932
100 Boone v. Coe 153 Ky. 233, 154 S.W. 900 Court of Appeals of Kentucky, 1913
103 United States v. Algernon Blair, Inc. 479 F.2d 638 United States Court of Appeals, Fourth Circuit, 1973
115 Britton v. Turner 6 N.H. 481 Supreme Court of New Hampshire, 1834
121 Pinches v. Swedish Evangelical Lutheran Church 55 Conn. 183, 10 A. 264 Supreme Court of Errors of Connecticut, 1887
125 Vines v. Orchard Hills, Inc. 181 Conn. 501, 435 A.2d 1022 Supreme Court of Connecticut, 1980
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
144 Fretwell v. Protection Alarm Co. 764 P.2d 149 Supreme Court of Oklahoma, 1988
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
162 Laclede Gas Co. v. Amoco Oil Co. 522 F.2d 33 United States Court of Appeals, Eight Circuit, 1975
170 Fitzpatrick v. Michael 177 Md. 248, 9 A.2d 639 Court of Appeals of Maryland, 1939
180 Northern Delaware Indus. Dev. Corp. v. E.W. Bliss Co. 245 A.2d 431 Court of Chancery of Delaware, 1968
192 Congregation Kadimah Toras-Moshe v. DeLeo 405 Mass. 365, 540 N.E.2d 691 Supreme Judicial Court of Massachusetts, 1989
204 Hamer v. Sidway 124 N.Y. 538, 27 N.E. 256 Court of Appeals of New York, 1891
210 Fischer v. Union Trust Co. 138 Mich. 612, 101 N.W. 852 Supreme Court of Michigan, 1904
214 Batsakis v. Demotsis 226 S.W.2d 673 Court of Civil Appeals of Texas, 1949
219 Duncan v. Black 324 S.W.2d 483 Court of Appeals of Missouri, 1959
223 Martin v. Little, Brown & Co. 304 Pa.Super. 424, 450 A.2d 984 Superior Court of Pennsylvania, 1981
230 Mills v. Wyman 20 Mass. (3 Pick.) 207 Supreme Judicial Court of Massachusetts, 1825
235 Webb v. McGowin 27 Ala.App. 82, 168 So.196 Court of Appeals of Alabama, 1935
244 Kirksey v. Kirksey 8 Ala. 131 Supreme Court of Alabama, 1845
247 Allegheny College v. National Chautauqua County Bank 246 N.Y. 369, 159 N.E. 173 Court of Appeals of New York, 1927
259 East Providence Credit Union v. Geremia 103 R.I. 597, 239 A.2d 725 Supreme Court of Rhode Island, 1968
264 Seavy v. Drake 62 N.H. 393 Supreme Court of New Hampshire, 1882
271 Forrer v. Sears, Roebuck & Co. 36 Wis.2d 388, 153 N.W.2d 587 Supreme Court of Wisconsin, 1967
275 Stearns v. Emery-Waterhouse Co. 596 A.2d 72 Supreme Judicial Court of Maine, 1991
278 Goodman v. Dicker 169 F.2d 684 United States Court of Appeals, District of Columbia, 1948
286 Levine v. Blumenthal 117 N.J.L. 23, 186 A. 457 Supreme Court of New Jersey, 1936
295 Obering v. Swain-Roach Lumber Co. 86 Ind.App. 632, 155 N.E. 712 Appellate Court of Indiana, 1927
298 Wood v. Lucy, Lady Duff-Gordon 222 N.Y. 88, 118 N.E. 214 Court of Appeals of New York, 1917
302 Omni Group, Inc. v. Seattle-First Nat'l Bank 32 Wash.App. 22, 645 P.2d 727 Court of Appeals of Washington, 1982
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
316 Sheets v. Teddy's Frosted Foods, Inc. 179 Conn. 471, 427 A.2d 385 Supreme Court of Connecticut, 1980
325 Embry v. Hargadine, McKittrick Dry Goods Co. 127 Mo.App. 383, 105 S.W. 777 Court of Appeals, Missouri, 1907
329 Kabil Developments Corp. v. Mignot 279 Or. 151, 566 P.2d 505 Supreme Court of Oregon, 1977
334 McDonald v. Mobil Coal Producing, Inc. 820 P.2d 986. Supreme Court of Wyoming, 1991
343 Moulton v. Kershaw 59 Wis. 316, 18 N.W. 172 Supreme Court of Wisconsin, 1884
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
352 Empro Mfg. Co. v. Ball-Co Mfg., Inc. 870 F.2d 423 United States Court of Appeals, Seventh Circuit, 1989
355 Wheeler v. White 398 S.W.2d 93 Supreme Court of Texas, 1965
358 Raffles v. Wichelhaus 2 Hurlstone & Coltman 906 Court of Exchequer, 1864
363 Cobaugh v. Klick-Lewis, Inc. 385 Pa.Super. 587, 561 A.2d 1248 Superior Court of Pennsylvania, 1989
369 Allied Steel & Conveyors, Inc. v. Ford Motor Co. 277 F.2d 907 United States Court of Appeals, Sixth Circuit, 1960
372 Davis v. Jacoby 1 Cal.2d 370, 34 P.2d 1026 Supreme Court of California, 1934
378 Petterson v. Pattberg 248 N.Y. 86, 161 N.E. 428 Court of Appeals of New York, 1928
385 Brackenbury v. Hodgkin 116 Me. 399, 102 A. 106 Supreme Judicial Court of Maine, 1917
392 Thomason v. Bescher 176 N.C. 622, 97 S.E. 654 Supreme Court of North Carolina, 1918
395 James Baird Co. v. Gimbel Bros. 64 F.2d 344 United States Court of Appeals, Second Circuit, 1933
399 Drennan v. Star Paving Co. 51 Cal.2d 409, 333 P.2d 757 Supreme Court of California, 1958
409 Hoffman v. Red Owl Stores, Inc. 26 Wis.2d 683, 133 N.W.2d 267 Supreme Court of Wisconsin, 1965
416 Livingston v. Evans [1925] 4 D.L.R. 769 Supreme Court of Alberta, 1925
422 Idaho Power Co. v. Westinghouse Electric Corp. 596 F.2d 924 United States Court of Appeals, Ninth Circuit, 1979
430 ProCD, Inc. v. Zeidenberg 86 F.3d 1447 United States Court of Appeals, Seventh Circuit, 1996
437 Morrison v. Thoelke 155 So.2d 889 District Court of Appeals of Florida, 1963
448 Hobbs v. Massasoit Whip Co. 158 Mass. 194, 33 N.E. 495 Supreme Judicial Court of Massachusetts, 1893
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
457 Mitchill v. Lath 247 N.Y. 377, 160 N.E. 646 Court of Appeals of New York, 1928
464 Hatley v. Stafford 284 Or. 523, 588 P.2d 603 Supreme Court of Oregon, 1978
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
485 Lipsit v. Leonard 64 N.J. 276, 315 A.2d 25 Supreme Court of New Jersey, 1974
490 LaFazia v. Howe 575 A.2d 182 Supreme Court of Rhode Island, 1990
497 Hoffman v. Chapman 182 Md. 208, 34 A.2d 438 Court of Appeals of Maryland, 1943
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
514 Mundy v. Lumberman's Mut. Cas. Co. 783 F.2d 21 United States Court of Appeals, First Circuit, 1986
520 Henningsen v. Bloomfield Motors, Inc. 32 N.J. 358, 161 A.2d 69 Supreme Court of New Jersey, 1960
527 Richards v. Richards 181 Wis.2d 1007, 513 N.W.2d 118 Supreme Court of Wisconsin, 1994
531 Broemmer v. Abortion Services of Phoenix 173 Ariz. 148, 840 P.2d 1013 Supreme Court of Arizona, 1992
543 Halbman v. Lemke 99 Wis.2d 241, 298 N.W.2d 562 Supreme Court of Wisconsin, 1980
557 Odorizzi v. Bloomfield School Dist. 246 Cal.App.2d 123, 54 Cal.Rptr. 533 California District Court of Appeal, 1966
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
569 Alaska Packers' Ass'n v. Domenico 117 F. 99 United States Court of Appeals, Ninth Circuit, 1902
573 Brian Constr. & Dev. Co. v. Brighenti 176 Conn. 162, 405 A.2d 72 Supreme Court of Connecticut, 1978
580 Universal Builders, Inc. v. Moon Motor Lodge, Inc. 430 Pa. 550, 244 A.2d 10 Supreme Court of Pennsylvania, 1968
586 Hackley v. Headley 45 Mich. 569, 8 N.W. 511 Supreme Court of Michigan, 1881
590 Marton Remodeling v. Jensen 706 P.2d 607 Supreme Court of Utah, 1985
598 Denney v. Reppert 432 S.W.2d 647 Court of Appeals of Kentucky, 1968
601 Jackson v. Seymour 193 Va. 735, 71 S.E.2d 181 Supreme Court of Appeals of Virginia, 1952
606 Sherwood v. Walker 66 Mich. 568, 33 N.W. 919 Supreme Court of Michigan, 1887
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
625 Tribe v. Peterson 964 P.2d 1238 Supreme Court of Wyoming, 1998
628 Hinson v. Jefferson 287 N.C. 422, 215 S.E.2d 102 Supreme Court of North Carolina, 1975
635 Johnson v. Healy 176 Conn. 97, 405 A.2d 54 Supreme Court of Connecticut, 1978
640 Cushman v. Kirby 148 Vt. 571, 536 A.2d 550 Supreme Court of Vermont, 1987
648 Taylor v. Caldwell 3 Best & S. 826 King's Bench, 1863
652 Tompkins v. Dudley 25 N.Y. 272 Court of Appeals of New York, 1862
654 Carroll v. Bowersock 100 Kan. 270, 164 P. 143 Supreme Court of Kansas, 1917
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
665 Bunge Corp. v. Recker 519 F.2d 449 United States Court of Appeals, Eight Circuit, 1975.
669 American Trading & Prod. Corp. v. Shell Int'l Marine, Ltd. 453 F.2d 939 United States Court of Appeals, Second Circuit, 1972
675 Krell v. Henry 2 K.B. 740 Court of Appeal, 1903
681 Lloyd v. Murphy 25 Cal.2d 48, 153 P.2d 47 Supreme Court of California, 1944
684 Chase Precast Corp. v. John J. Paonessa Co. 409 Mass. 371, 566 N.E.2d 603 Supreme Judicial Court of Massachusetts, 1991
688 Woollums v. Horsley 93 Ky. 582, 20 S.W. 781 Court of Appeals of Kentucky, 1892
695 Waters v. Min Ltd. 412 Mass. 64, 587 N.E.2d 231 Supreme Judicial Court of Massachusetts, 1992
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
716 Howard v. Federal Crop Ins. Corp. 540 F.2d 695 United States Court of Appeals, Fourth Circuit, 1976
721 Gray v. Gardner 17 Mass. 188 Supreme Judicial Court of Massachusetts, 1821
728 Parsons v. Bristol Dev. Co. 62 Cal.2d 861, 44 Cal.Rptr. 767, 402 P.2d 839 Supreme Court of California, 1965
733 Mascioni v. I.B. Miller, Inc. 261 N.Y. 1, 184 N.E. 473 Court of Appeals of New York, 1933
737 Royal-Globe Ins. Co. v. Craven 411 Mass. 629, 585 N.E.2d 315 Supreme Judicial Court of Massachusetts, 1992
742 Gilbert v. Globe & Rutgers Fire Ins. Co. 91 Or. 59, 174 P. 1161 Supre Court of Oregon, 1919
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
757 Inman v. Clyde Hall Drilling Co. 369 P.2d 498 Supreme Court of Alaska, 1962
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
771 Nolan v. Whitney 88 N.Y. 648 Court of Appeals of New York, 1882
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
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
789 Conley v. Pitney Bowes 34 F.3d 714 United States Court of Appeals, Eigth Circuit, 1994
792 Ziehen v. Smith 148 N.Y. 558, 42 N.E. 1080 Court of Appeals of New York, 1896
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
805 Osborne v. Bullins 549 So.2d 1337 Supreme Court of Mississippi, 1989
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
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
824 Plateq Corp. of North Haven v. Machlett Labs, Inc. 189 Conn. 433, 456 A.2d 786 Supreme Court of Connecticut, 1983
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
840 Wholesale Sand & Gravel, Inc. v. Decker 630 A.2d 710 Supreme Judicial Court of Maine, 1993
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
869 Lawrence v. Fox 20 N.Y. 268 Court of Appeals of New York, 1859
875 Seaver v. Ransom 224 N.Y. 233, 120 N.E. 639 Court of Appeals of New York, 1918
885 Anderson v. Fox Hill Village Homeowners Corp. 424 Mass. 365, 676 N.E.2d 821 Supreme Judicial Court of Massachusetts, 1997
887 H.R. Moch Co. v. Rensselaer Water Co. 247 N.Y. 160, 159 N.E. 896 Court of Appeals of New York, 1928
892 Heyer v. Flaig 70 Cal.2d 223, 74 Cal.Rptr. 225, 449 P.2d 161 Supreme Court of California, 1969
897 Robson v. Robson 514 F.Supp. 99 United States District Court, N.D. Illinois, 1981
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
917 Macke Co. v. Pizza of Gaithersburg, Inc. 259 Md. 479, 270 A.2d 645 Court of Appeals of Maryland, 1970
923 Allhusen v. Caristo Constr. Corp. 303 N.Y. 446, 103 N.E.2d 891 Court of Appeals of New York, 1952
932 Ford Motor Credit Co. v. Morgan 404 Mass. 537, 536 N.E.2d 587 Supreme Judicial Court of Massachusetts, 1989
938 Homer v. Shaw 212 Mass. 113, 98 N.E. 697 Supreme Judicial Court of Massachusetts, 1912
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