Breaching of Contracts

Mobil Oil Exploration & Producing South East, Inc. V. United States

120 S. Ct. 2423 (2000)

Presented by

Saravanan Velrajan

Agenda

• Breach of Contract – Introduction

• Restatement of Contracts

• Case Study - Restitution

• Summary

Breach of Contract - Introduction

• Party does not live up to the obligation of contractual performance

• Remedies– Negotiated settlement– Arbitration– Various damage awards– Specific performance– Rescission or Restitution

Restatement of Contracts

• When one party to a contract repudiates that contract, the other party is entitled to restitution for any benefit that he has conferred on the repudiating party by way of part performance or reliance.

• Contract Laws are the same for government & private individuals.

Case Study - Restitution• Mobil Oil Exploration & Producing South

East, Inc. V. United States

• The Contract $158 million upfront bonus for oil exploration in N. Carolina coast

• Breach of contract by United States Govt.

• Refund of money by US Government upon repudiation from oil companies

Summary

• Breach of Contracts – Introduction

• Restatement of Contracts

• Case Study - Restitution

• Conclusion

References

• Reed, O. L., Shedd, J. P., Morehead, W. J., & Corley, N. R. (2002). The legal and regulatory environment of business. New York. McGraw-Hill. Retrieved May 17, 2005, from University of Phoenix, Resource, ORG502-Human Relations and Organizational Behavior Web site: https://mycampus.phoenix.edu/secure/resource/resource.asp