TABLEOFCONTENTS PREFACE ACKNOWLEDGEMENTS TABLE OF CASES NOTE ON EDITING CHAPTER 1 Bases for Enforcing Promises 1.

Enforceable Promises: An Introduction Hawkins v. McGee Bayliner Marine Corp. v. Crow 2. Remedying Breach United States Naval Institute v. Charter Communications, Inc. The Purpose of Remedies: Three Protected Interests Sullivan v. OConnor The Economics of Remedies: An Introductory Note Punitive Damages White v. Benkowski Remedies in Practice 3. Consideration as a Basis for Enforcement (A) Fundamentals of Consideration Typical Categories of Agreements Family Contracts Hamer v. Sidway Gratuitous Promises Fiege v. Boehm (B) The Requirement of Exchange: Action in the Past Feinberg v. Pfeiffer Co. Moral Obligation Mills v. Wyman Webb v. McGowin (C) The Requirement of Bargain Kirksey v. Kirksey Employment Agreements Lake Land Employment Group of Akron, LLC v. Columber Employee Handbooks Rewards (D) Promises as Consideration What Constitutes a Promise? Strong v. Sheffield Contracts for the Sale of Real Estate Mattei v. Hopper Contracts for the Sale of Goods Eastern Air Lines, Inc. v. Gulf Oil Corporation Wood v. Lucy, Lady DuffGordon Substitutes for Consideration 4. Reliance as a Basis of Enforcement Ricketts v. Scothorn The Development of Promissory Estoppel

Restatement, First, 90 Feinberg v. Pfeiffer Co. Restatement, Second, 90 Cohen v. Cowles Media Company D & G Stout, Inc. v. Bacardi Imports, Inc. 5. Restitution as an Alternative Basis for Recovery Cotnam v. Wisdom Callano v. Oakwood Park Homes Corp. Pyeatte v. Pyeatte CHAPTER 2 Creating Contractual Obligations 1. The Nature of Assent Lucy v. Zehmer Intent to Be Bound Gentlemens Agreements Formal Contract Contemplated 2. The Offer Owen v. Tunison Harvey v. Facey Fairmount Glass Works v. Crunden Martin Woodenware Co. Advertisements as Offers Lefkowitz v. Great Minneapolis Surplus Store Construction Contracts Mistaken Bids Elsinore Union Elementary School District v. Kastorff 3. The Acceptance International Filter Co. v. Conroe Gin, Ice & Light Co. White v. Corlies & Tift EverTite Roofing Corporation v. Green The Significance of Contract Formation Notification of Acceptance in Unilateral Contracts Allied Steel and Conveyors, Inc. v. Ford Motor Co. Shipment of Goods as Acceptance Corinthian Pharmaceutical Systems, Inc. v. Lederle Laboratories Silence Not Ordinarily Acceptance 4. Termination of the Power of Acceptance (A) Lapse of an Offer (B) Revocation of Offers Option Contracts Dickinson v. Dodds Firm Offers Under Article 2 Ragosta v. Wilder (C) Death of an Offeror (D) Rejection and the Mirror Image Rule Rejection of an Irrevocable Offer (E) The Mailbox Rule: Contracts by Correspondence 5. The Battle of the Forms and the Uniform Commercial Code (A) Acceptance Varying Offer: The Traditional View

Standard Forms and Battle of the Forms (B) Transcending the Mirror Image Rule: UCC 2207 Dorton v. Collins & Aikman Corp. Materiality C. Itoh & Co. (America) Inc. v. Jordan Intl Co. Different Terms Northrop Corp. v. Litronic Industries Contract First, Terms Later: UCC 2207 or a New Method of Contract Formation? StepSaver Data Systems, Inc. v. Wyse Technology ProCD, Inc. v. Zeidenberg Hill v. Gateway 2000, Inc. Revising Article Two 6. Precontractual Liability Revocability and Reliance Drennan v. Star Paving Co. Liability When Negotiations Fail Hoffman v. Red Owl Stores Cyberchron Corp. v. Calldata Systems Development, Inc. Preliminary Binding Agreements/Preliminary Binding Commitments Channel Home Centers, Division of Grace Retail Corp. v. Grossman 7. The Requirement of Definiteness Toys, Inc. v. F. M. Burlington Company Flexible Pricing Oglebay Norton Co. v. Armco, Inc. CHAPTER 3 Statutes of Frauds 1. Overview (A) Statutory Texts (B) Explaining the Legislative Choices (C) Ameliorating Rules (D) Ethical Practices and Statutes of Frauds 2. Writing, Signing, and Otherwise Recording and Authenticating The Content of a Document Signing Electronic Documentation 3. Statutory Scope (A) Duration of Performance: The OneYear and Lifetime Clauses C. R. Klewin, Inc. v. Flagship Properties, Inc. Informal Extensions of Employment Lifetime Agreements: Tuckwillers Case (B) Interests in Real Property Richard v. Richard (C) Sales of Goods UCC 2201(1) UCC 2201(2) St. Ansgar Mills, Inc. v. Streit UCC 2201(3) UCC 2201 Versus Law and Equity

(D) The Suretyship Clause Suretyship Agreements Langman v. Alumni Association of the University of Virginia Current Obligation The MainPurpose Rule Central Ceilings, Inc. v. National Amusements, Inc. Of Nursing Care and Caterpillars Main Purpose 4. Reliance and Other Equities Monarco v. Lo Greco CHAPTER 4 Policing the Bargaining Process 1. Capacity Kiefer v. Fred Howe Motors, Inc. Ortelere v. Teachers Retirement Bd. Cundick v. Broadbent 2. Overreaching (A) Pressure in Bargaining The PreExisting Duty Rule Alaska Packers Assn v. Domenico Avoiding the PreExisting Duty Rule: Rescission and Modification Watkins & Son v. Carrig Yielding to Threat Avoiding the PreExisting Duty Rule: New Consideration Partial Payment PreExisting Duty to a Third Party Duress in Business Austin Instrument, Inc. v. Loral Corporation Undue Influence Odorizzi v. Bloomfield School District (B) Concealment and Misrepresentation Swinton v. Whitinsville Sav. Bank Kannavos v. Annino Misrepresentation Vokes v. Arthur Murray, Inc. CHAPTER 5 Determining the Parties Obligations under the Contract: Ascertaining, Interpreting, and Supplementing 1. The Parol Evidence Rule Gianni v. R. Russell & Co. Masterson v. Sine Bollinger v. Central Pennsylvania Quarry Stripping and Construction Co. Parol Evidence and Contracts for the Sale of Goods NoOral Modification Clauses 2. The Use of Extrinsic Evidence of the Parties Intent Pacific Gas & Electric Co. v. G.W. Thomas Drayage & Rigging Co. Delta Dynamics, Inc. v. Arioto Greenfield v. Philles Records, Inc. W.W.W. Associates, Inc. v. Giancontieri Trident Center v. Connecticut General Life Ins. Co. Methods of Interpreting Ambiguous Contracts

Rules in Aid of Interpretation Function of Judge and Jury 3. The Use of Extrinsic Evidence from Commercial Context Frigaliment Importing Co. v. B.N.S. International Sales Corp. Hurst v. W.J. Lake & Co. 4. The Use of Extrinsic Evidence to Supplement or Qualify the Agreement: Course of Dealing, Usage of Trade, and Course of Nanakuli Paving & Rock Co. v. Shell Oil Co. Columbia Nitrogen Corp. v. Royster Co. 5. Objective Interpretation and Its Limits Raffles v. Wichelhaus Oswald v. Allen Colfax Envelope Corp. v. Local No. 4583 6. Supplementing the Agreement With Terms Supplied by Law: Gap Fillers, Warranties, and Mandatory Terms (A) Filling Contractual GapsGenerally (B) Filling Common Contractual Gaps by Statute (C) Gap Filling With Respect to Product QualityImplied Warranties in Article 2 The Implied Warranty of Merchantability Koken v. Black & Veatch Construction, Inc. The Implied Warranty of Fitness for Particular Purpose Lewis v. Mobil Oil Corporation Excluding Implied Warranties From the Contract South Carolina Electric and Gas Co. v. Combustion Engineering, Inc. Other Limits on Excluding Implied Warranties Henningsen v. Bloomfield Motors, Inc. (D) Express Warranties (E) Supplementing the Contract With Mandatory TermsGood Faith CHAPTER 6 Limits on the Bargain and its Performance 1. Unfairness McKinnon v. Benedict Tuckwiller v. Tuckwiller Black Industries, Inc. v. Bush Public Policies, Excessive Profits, and Government Contracts 2. Standard Form and Adhesion Contracts OCallaghan v. Waller & Beckwith Realty Co. Agreeing to Boilerplate Graham v. ScissorTail, Inc. The Duty to Read and the Duty to Disclose Carnival Cruise Lines, Inc. v. Shute Sources of Policing: Courts, Legislatures, and Agencies Doe v. Great Expectations 3. Unconscionability Unconscionability: Two Views Williams v. WalkerThomas Furniture Co. Price Unconscionability Jones v. Star Credit Corp. Unconscionability in Franchises Unconscionability: Arbitration Clauses

Armendariz v. Foundation Health Psychcare Services, Inc. Scott v. Cingular Wireless 4. Performing in Good Faith Dalton v. Educational Testing Service Eastern Air Lines, Inc. v. Gulf Oil Corporation Market Street Associates v. Frey Bloor v. Falstaff Brewing Corp. Percentage Leases Good Faith in Termination Lockewill, Inc. v. United States Shoe Corp. 5. Public Policy (A) Illegal Contracts Bovard v. American Horse Enterprises, Inc. X.L.O. Concrete Corp. v. Rivergate Corp. Inducing Official Action Commercial Bribery Licensing Laws (B) Judicially Created Public Policy Restraints of Trade Hopper v. All Pet Animal Clinic Public Policy and Termination of AtWill Employees Sheets v. Teddys Frosted Foods Balla v. Gambro, Inc. Family Relations Simeone v. Simeone In the Matter of BABY CHAPTER 7 Remedies for Breach 1. Specific Relief Campbell Soup Co. v. Wentz Klein v. PepsiCo, Inc. Morris v. Sparrow Specific Performance and Interest Laclede Gas Co. v. Amoco Oil Co. Northern Delaware Industrial Development Corp. v. E.W. Bliss Co. Walgreen Co. v. Sara Creek Property Co. Specific Performance, Efficiency, and the Coase Theorem 2 Measuring Expectation Vitex Manufacturing Corp. v. Caribtex Corp. Laredo Hides Co., Inc. v. H & H Meat Products Co., Inc. R.E. Davis Chemical Corp. v. Diasonics, Inc. Losing Contracts United States v. Algernon Blair, Inc. 3. Limitations on Damages (A) Avoidability Rockingham County v. Luten Bridge Co. Avoidability Under Contracts for the Sale of Goods Tongish v. Thomas

Parker v. Twentieth CenturyFox Film Corp. Avoidability and the Cost of Remedy Defect Jacob & Youngs v. Kent Groves v. John Wunder Co. Peevyhouse v. Garland Coal & Mining Co. (B) Foreseeability Hadley v. Baxendale Delchi Carrier Spa v. Rotorex Corp. Kenford Co. v. County of Erie Sentimental Value Emotional Distress (C) Certainty Fera v. Village Plaza, Inc. 4. Liquidated Damages and Penalties Wassermans Inc. v. Township of Middletown Dave Gustafson & Co. v. State CHAPTER 8 Performance and Breach 1. Conditions (A) Effects of Conditions Luttinger v. Rosen InternatioRotterdam, Inc. v. River Brand Rice Mills, Inc. Separate Contracts (B) Problems of Interpretation Condition, Duty, Or Both? Peacock Construction Co. v. Modern Air Conditioning, Inc. Gibson v. Cranage ThirdParty Satisfaction (C) Mitigating Doctrines Prevention Waiver, Estoppel, and Election McKenna v. Vernon Interpretation and Avoidance of Forfeiture Hicks v. Bush 2. Constructive Conditions of Exchange Kingston v. Preston Time For Performance Stewart v. Newbury Concurrent Conditions and Tender 3 Mitigating Doctrines (A) Substantial Performance Jacob & Youngs v. Kent Plante v. Jacobs The Perfect Tender Rule (B) Divisibility Gill v. Johnstown Lumber Co. (C) Restitution Britton v. Turner

Kirkland v. Archbold 4. Suspending Performance and Terminating the Contract AfterAcquired Evidence Walker & Co. v. Harrison K & G Construction Co. v. Harris Hindrance and Prevention Iron Trade Products Co. v. Wilkoff Co. New England Structures, Inc. v. Loranger 5. Prospective Nonperformance (A) Anticipatory Repudiation Hochster v. De La Tour Kanavos v. Hancock Bank & Trust Co. McCloskey & Co. v. Minweld Steel Co. C.L. Maddox, Inc. v. Coalfield Services, Inc. Permissible Responses to Repudiation Cosden Oil & Chemical Co. v. Karl O. Helm Aktiengesellschaft United States v. Seacoast Gas Co. (B) Assurance of Due Performance PittsburghDes Moines Steel Co. v. Brookhaven Manor Water Co. Norcon Power Partners v. Niagara Mohawk Power Corp. CHAPTER 9 Basic Assumptions: Mistake, Impracticability and Frustration 1 Mutual Mistake Stees v. Leonard Renner v. Kehl Sale of Goods: Two Famous Cases The Risks of Limited Knowledge Mistake and Restitution 2. Impracticability of Performance Mineral Park Land Co. v. Howard Supervening Events Taylor v. Caldwell Impossibility and Impracticability of Performance Under Article 2 Transatlantic Financing Corporation v. United States Foreseeability RiskBearing Analyses Selland PontiacG MC, Inc. v. King Force Majeure Clauses Canadian Industrial Alcohol Co. v. Dunbar Molasses Co. Casualty to Goods Eastern Air Lines, Inc. v. Gulf Oil Corporation 3. Frustration of Purpose Krell v. Henry Swift Canadian Co. v. Banet Chase Precast Corp. v. John J. Paonessa Co. Northern Indiana Public Service Co. v. Carbon County Coal Co. 4. Half Measures Impracticability and Reliance

Young v. City of Chicopee Reliance Interests The Alcoa Case CHAPTER 10 Third Parties: Rights and Responsibilities 1. ThirdPartyBeneficiary Contracts Restatement Formulations Lawrence v. Fox Seaver v. Ransom Detroit Institute of Arts Founders Society v. Rose Distribution Networks Contracts for Public Services Rathke v. Corrections Corporation of America, Inc. First Restatement Statutes Insurance Contracts Third-Party Claims For Bad-Faith Breach Verni v. Cleveland Chiropractic College AttorneyClient Contracts and Third Parties Grigerik v. Sharpe The Septembertide Case Vesting of Third-Party Rights 2. Delegation of Duties Delegation Absolution UCC Article 2 and the Restatement Terms of Delegation Sally Beauty Co. v. Nexxus Products Co. 3. Assignments of Rights (A) Assignability of Rights Means of Assignment Herzog v. Irace Means of Assignment Sale vs. Loan AntiAssignment Provisions BelRay Company v. Chemrite (Pty) Ltd. (B) Obligors Duty to Assignee: Some Variations Delacy Investments, Inc. v. Thurman & Re/ Max Real Estate Guide, Inc. Modification Agreement not to Assert Defenses Against Assignee Financiers vs. Consumers Linkage, Assignor and Assignee Chemical Bank v. Rinden Professional Association Assignees Liabilities (C) Assignees in Contests With Third Parties U.S. Claims, Inc. v. Flomenhaft & Cannata, LLC INDEX

v vii xxiii xlii 1 1 2 4 8 9 13 14 20 23 23 27 29 29 32 33 34 39 40 46 46 50 50 52 56 56 58 58 64 66 67 69 69 72 72 76 76 83 86 89 89 91

93 94 95 98 100 105 106 110 113 116 116 117 122 123 124 126 127 129 130 133 134 137 137 139 147 147 152 154 156 156 158 161 161 166 167 168 170 171 171 176 177 180 182 184 185 188 188

190 191 193 198 199 202 202 205 206 211 215 219 220 221 222 228 230 234 239 239 246 249 251 252 257 257 257 260 262 264 266 266 267 268 269 269 270 277 278 279 280 285 285 286 289 294 295

297 297 299 301 302 302 304 305 305 310 312 312 316 319 322 322 324 325 329 331 334 336 337 338 340 340 345 346 352 353 356 360 362 365 366 368 371 377 379 380 381 382 386 386 390 392 395

398 400 401 401 407 410 410 419 421 422 424 426 430 431 432 433 433 434 437 437 441 441 445 445 450 451 453 454 455 458 460 463 465 467 473 475 477 480 487 489 494 496 497 503 503 507 509

509 516 522 522 526 529 532 539 540 540 543 545 546 549 552 553 554 556 557 557 562 562 568 571 571 575 583 584 584 588 593 594 596 601 602 604 606 609 613 619 625 626 629 629 630 632 633

638 644 645 648 653 656 657 661 664 669 670 672 674 679 680 688 691 691 691 692 695 699 700 700 701 704 707 708 709 710 711 713 713 716 717 718 719 721 723 723 724 728 731 733 733 735 736

742 745 747 748 752 758 759 762 765 765 766 771 776 780 783 783 790 794 795 799 807 808 808 811 815 817 819 821 821 824 825 829 830 837 838 839 842 844 846 848 854 854 858 861 866 872 873

874 876 877 880 880 881 883 888 892 893 895 897 900 901 902 903 905 906 908 912 913 914 916 917 918 919 925 925 926 929 932 933 934 938 939 944 946 947 948 949 952 955 956 959