T A B L E O F C O N T E N T S PREFACEACKNOWLEDGEMENTS TABLE OF CASESNOTE ON EDITING CHAPTER 1 Bases for Enforcing Promises 1. Enforceable Promises: An Introduction Hawkins v. McGee Bayliner Marine Corp. v. Crow2. Remedying Breach United States Naval Institute v. Charter Communications, Inc. The Purpose of Remedies: Three Protected Interests Sullivan v. O’Connor 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. HopperContracts for the Sale of Goods Eastern Air Lines, Inc. v. Gulf Oil Corporation Wood v. Lucy, Lady Duff–Gordon 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 ‘‘Gentlemen’s 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 Ever–Tite 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 § 2–207 Dorton v. Collins & Aikman Corp. Materiality C. Itoh & Co. (America) Inc. v. Jordan Int’l Co. Different Terms Northrop Corp. v. Litronic Industries Contract First, Terms Later: UCC § 2–207 or a New Method of Contract Formation? Step–Saver 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 CompanyFlexible 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 One–Year and Lifetime Clauses C. R. Klewin, Inc. v. Flagship Properties, Inc. Informal Extensions of Employment Lifetime Agreements: Tuckwiller’s Case (B) Interests in Real Property Richard v. Richard

(C) Sales of Goods UCC § 2–201(1) UCC § 2–201(2) St. Ansgar Mills, Inc. v. Streit UCC § 2–201(3) UCC § 2–201 Versus Law and Equity (D) The Suretyship Clause Suretyship Agreements Langman v. Alumni Association of the University of Virginia Current Obligation The Main–Purpose Rule Central Ceilings, Inc. v. National Amusements, Inc. Of Nursing Care and Caterpillar’s Main Purpose 4. Reliance and Other Equities Monarco v. Lo GrecoCHAPTER 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 Pre–Existing Duty Rule Alaska Packers’ Ass’n v. Domenico Avoiding the Pre–Existing Duty Rule: Rescission and ModificationWatkins & Son v. Carrig Yielding to Threat Avoiding the Pre–Existing Duty Rule: New Consideration Partial Payment Pre–Existing 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,1. The Parol Evidence Rule Gianni v. R. Russell & Co. Masterson v. SineBollinger v. Central Pennsylvania Quarry Stripping and Construction Co.Parol Evidence and Contracts for the Sale of Goods

No–Oral– 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 ContractsRules 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 TNanakuli 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. 458–3 6. Supplementing the Agreement With Terms Supplied by Law: Gap Fillers, Warranties, and Mandatory (A) Filling Contractual Gaps—Generally (B) Filling Common Contractual Gaps by Statute (C) Gap Filling With Respect to Product Quality—Implied 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 Terms—Good Faith CHAPTER 6 Limits on the Bargain and its Performance 1. Unfairness McKinnon v. BenedictTuckwiller v. Tuckwiller Black Industries, Inc. v. Bush Public Policies, Excessive Profits, and Government Contracts 2. Standard Form and Adhesion Contracts O’Callaghan v. Waller & Beckwith Realty Co. Agreeing to Boilerplate Graham v. Scissor–Tail, 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. Walker–Thomas 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. FreyBloor 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 At–Will Employees Sheets v. Teddy’s 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. SparrowSpecific 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 Century–Fox 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’’ Wasserman’s Inc. v. Township of Middletown Dave Gustafson & Co. v. State CHAPTER 8 Performance and Breach 1. Conditions (A) Effects of Conditions Luttinger v. Rosen Internatio–Rotterdam, 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 Third–Party 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 After–Acquired 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 Pittsburgh–Des 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 Restitution2. Impracticability of Performance Mineral Park Land Co. v. HowardSupervening Events Taylor v. Caldwell

Impossibility and Impracticability of Performance Under Article 2 Transatlantic Financing Corporation v. United States Foreseeability Risk–Bearing Analyses Selland Pontiac–G 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. Third–Party–Beneficiary 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 Attorney–Client Contracts and Third Parties Grigerik v. Sharpe The Septembertide Case Vesting of Third-Party Rights 2. Delegation of Duties Delegation π 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 AssignmentHerzog v. Irace

Means of Assignment Sale vs. Loan Anti–Assignment Provisions Bel–Ray Company v. Chemrite (Pty) Ltd. (B) Obligor’s 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

112489

13142023232729293233343940464650505256565858646667696972727676838689

899193949598

100105106110113116116117122123124126127129130133134137137139147147152154156156158161161166167168170171171176177180182

184185188188190191193198199202202205206211215219220221222228230234239239246249251252257257257260262264266266267268269269270277278279280

285285286289294295297297299301302302304305305310312312316319322322324325329331334336337338340340345346352353356360362365366368371377379

380381382386386390392395398400401401407410410419421422424426430431432433433434437437441441445445450451453454455458460463465467473475477

480487489494496497503503507509509516522522526529532539540540543545546549552553554556557557562562568571571575583584584588593594596601602

604606609613619625626629629630632633638644645648653656657661664669670672674679680688691691691692695699700700701704707708709710711713713

716717718719721723723724728731733733735736742745747748752758759762765765766771776780783783790794795799807808808811815817819821821824825

829830837838839842844846848854854858861866872873874876877880880881883888892893895897900901902903905906908912913914916917918919925925926

929932933934938939944946947948949952955956959