Discharge of Contracts Legal Definition of Discharge of Contracts

11/29/2015 DischargeofContractslegaldefinitionofDischargeofContracts

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DischargeofContractslegaldefinitionofDischargeofContracts

http://legaldictionary.thefreedictionary.com/Discharge+of+Contracts

Contracts (redirectedfromDischargeofContracts)Alsofoundin:Medical.

ContractsAgreementsbetweentwoentities,creatinganenforceableobligationtodo,ortorefrainfromdoing,aparticularthing.

NatureandContractualObligationThepurposeofacontractistoestablishtheagreementthatthepartieshavemadeandtofixtheirrightsanddutiesinaccordancewiththatagreement.Thecourtsmustenforceavalidcontractasitismade,unlesstherearegroundsthatbaritsenforcement.

Statutesprescribeandrestrictthetermsofacontractwherethegeneralpublicisaffected.Thetermsofaninsurancecontractthatprotectacommoncarrierarecontrolledbystatuteinordertosafeguardthepublicbyguaranteeingthattherewillbefinancialresourcesavailableintheeventofanaccident.

Thecourtsmaynotcreateacontractfortheparties.Whenthepartieshavenoexpressorimpliedagreementontheessentialtermsofacontract,thereisnocontract.Courtsareonlyempoweredtoenforcecontracts,nottowritethem,fortheparties.Acontract,inordertobeenforceable,mustbeavalid.Thefunctionofthecourtistoenforceagreementsonlyiftheyexistandnottocreatethemthroughtheimpositionofsuchtermsasthecourtconsidersreasonable.

Itisthepolicyofthelawtoencouragetheformationofcontractsbetweencompetentpartiesforlawfulobjectives.Asageneralrule,contractsbycompetentpersons,equitablymade,arevalidandenforceable.Partiestoacontractareboundbythetermstowhichtheyhaveagreed,usuallyevenifthecontractappearstobeimprovidentorabadbargain,aslongasitdidnotresultfromFraud,duress,orUndueInfluence.

ThebindingforceofacontractisbasedonthefactthatitevincesameetingofmindsoftwopartiesinGoodFaith.Acontract,onceformed,doesnotcontemplatearightofapartytorejectit.Contractsthatweremutuallyenteredintobetweenpartieswiththecapacitytocontractarebindingobligationsandmaynotbesetasideduetothecapriceofonepartyortheotherunlessastatuteprovidestothecontrary.

TypesofContractsContractsunderSealTraditionally,acontractwasanenforceablelegaldocumentonlyifitwasstampedwithaseal.Thesealrepresentedthatthepartiesintendedtheagreementtoentaillegalconsequences.Nolegalbenefitordetrimenttoanypartywasrequired,asthesealwasasymbolofthesolemnacceptanceofthelegaleffectandconsequencesoftheagreement.Inthepast,allcontractswererequiredtobeundersealinordertobevalid,butthesealhaslostsomeorallofitseffectbystatuteinmanyjurisdictions.Recognitionbythecourtsofinformalcontracts,suchasimpliedcontracts,hasalsodiminishedtheimportanceandemploymentofformalcontractsunderseal.

ExpressContractsInanexpresscontract,thepartiesstatetheterms,eitherorallyorinwriting,atthetimeofitsformation.Thereisadefinitewrittenororalofferthatisacceptedbytheofferee(i.e.,thepersontowhomtheofferismade)inamannerthatexplicitlydemonstratesconsenttoitsterms.

ImpliedContractsAlthoughcontractsthatareimpliedinfactandcontractsimpliedinlawarebothcalledimplied



contracts,atrueimpliedcontractconsistsofobligationsarisingfromamutualagreementandintenttopromise,whichhavenotbeenexpressedinwords.Itismisleadingtolabelasanimpliedcontractonethatisimpliedinlawbecauseacontractimpliedinlawlackstherequisitesofatruecontract.Thetermquasicontractisamoreaccuratedesignationofcontractsimpliedinlaw.Impliedcontractsareasbindingasexpresscontracts.Animpliedcontractdependsonsubstanceforitsexistencetherefore,foranimpliedcontracttoarise,theremustbesomeactorconductofaparty,inorderforthemtobebound.

Acontractimpliedinfactisnotexpressedbythepartiesbut,rather,suggestedfromfactsandcircumstancesthatindicateamutualintentiontocontract.Circumstancesexistthat,accordingtotheordinarycourseofdealingandcommonunderstanding,demonstratesuchanintentthatissufficienttosupportafindingofanimpliedcontract.Contractsimpliedinfactdonotarisecontrarytoeitherthelawortheexpressdeclarationoftheparties.Contractsimpliedinlaw(quasicontracts)aredistinguishableinthattheyarenotpredicatedontheassentoftheparties,but,rather,existregardlessofassent.

Theimplicationofamutualagreementmustbeareasonabledeductionfromallofthecircumstancesandrelationsthatcontemplatepartieswhentheyenterintothecontractorwhicharenecessarytoeffectuatetheirintention.Noimpliedpromisewillexistwheretherelationsbetweenthepartiespreventtheinferenceofacontract.

Acontractwillnotbeimpliedwhereitwouldresultininequityorharm.Wheredoubtanddivergenceexistinthemindsoftheparties,thecourtmaynotinferacontractualrelationship.If,afteranagreementexpires,thepartiescontinuetoperformaccordingtoitsterms,animplicationarisesthattheyhavemutuallyassentedtoanewcontractthatcontainsthesameprovisionsastheoldagreement.

Acontractimpliedinfact,whichisinferredfromthecircumstances,isatruecontract,whereasacontractimpliedinlawisactuallyanobligationimposedbylawandtreatedasacontractonlyforthepurposesofaremedy.Withrespecttocontractsimpliedinfact,thecontractdefinesthedutyinthecaseofquasicontracts,thedutydefinesandimposestheagreementupontheparties.

ExecutedandExecutoryContractsAnexecutedcontractisoneinwhichnothingremainstobedonebyeitherparty.Thephraseis,toacertainextent,amisnomerbecausethecompletionofperformancesbythepartiessignifiesthatacontractnolongerexists.Anexecutorycontractisoneinwhichsomefutureactorobligationremainstobeperformedaccordingtoitsterms.

BilateralandUnilateralContractsTheexchangeofmutual,reciprocalpromisesbetweenentitiesthatentailstheperformanceofanact,orforbearancefromtheperformanceofanact,withrespecttoeachparty,isaBilateralContract.Abilateralcontractissometimescalledatwosidedcontractbecauseofthetwopromisesthatconstituteit.Thepromisethatonepartymakesconstitutessufficientconsideration(seediscussionbelow)forthepromisemadebytheother.

Aunilateralcontractinvolvesapromisethatismadebyonlyoneparty.Theofferor(i.e.,apersonwhomakesaproposal)promisestodoacertainthingiftheoffereeperformsarequestedactthatheorsheknowsisthebasisofalegallyenforceablecontract.Theperformanceconstitutesanacceptanceoftheoffer,andthecontractthenbecomesexecuted.Acceptanceoftheoffermayberevoked,however,untiltheperformancehasbeencompleted.Thisisaonesidedtypeofcontractbecauseonlytheofferor,whomakesthepromise,willbelegallybound.Theoffereemayactasrequested,ormayrefrainfromacting,butmaynotbesuedforfailingtoperform,orevenforabandoningperformanceonceithasbegun,becauseheorshedidnotmakeanypromises.

UnconscionableContractsAnUnconscionablecontractisonethatisunjustorundulyonesidedinfavorofthepartywhohasthesuperiorbargainingpower.Theadjectiveunconscionableimpliesanaffronttofairnessanddecency.Anunconscionablecontractisonethatnomentallycompetentpersonwouldacceptandthatnofairandhonestpersonwouldenterinto.Courtsfindthatunconscionablecontractsusuallyresultfromtheexploitationofconsumerswhoarepoorlyeducated,impoverished,andunabletoshoparoundforthebestpriceavailableinthecompetitive



marketplace.

Themajorityofunconscionablecontractsoccurinconsumertransactions.Contractualprovisionsthatindicategrossonesidednessinfavorofthesellerincludelimitingdamagesortherightsofthepurchasertoseekcourtreliefagainsttheseller,ordisclaimingaWarranty(i.e.,astatementoffactconcerningthenatureorcaliberofgoodssoldtheseller,giveninordertoinducethesale,andrelieduponbythepurchaser).

Unconscionabilityisascertainedbyexaminingthecircumstancesofthepartieswhenthecontractwasmade.Thisdoctrineisappliedonlywhereitwouldbeanaffronttotheintegrityofthejudicialsystemtoenforcesuchacontract.

AdhesionContractsAdhesioncontractsarethosethataredraftedbythepartywhohasthegreaterbargainingadvantage,providingtheweakerpartywithonlytheopportunitytoadhereto(i.e.,toaccept)thecontractortorejectit.(Thesetypesofcontractareoftendescribedbythesaying"Takeitorleaveit.")Theyarefrequentlyemployedbecausemostbusinessescouldnottransactbusinessifitwerenecessarytonegotiateallofthetermsofeverycontract.Notalladhesioncontractsareunconscionable,asthetermsofsuchcontractsdonotnecessarilyexploitthepartywhoassentstothecontract.Courts,however,oftenrefusetoenforcecontractsofadhesiononthegroundsthatatruemeetingofthemindsneverexisted,orthattherewasnoacceptanceoftheofferbecausethepurchaseractuallyhadnochoiceinthebargain.

AleatoryContractsAnaleatorycontractisamutualagreementtheeffectsofwhicharetriggeredbytheoccurrenceofanuncertainevent.Inthistypeofcontract,oneorbothpartiesassumerisk.Afireinsurancepolicyisaformofaleatorycontract,asaninsuredwillnotreceivetheproceedsofthepolicyunlessafireoccurs,aneventthatisuncertaintooccur.

VoidandVoidableContractsContractscanbeeithervoidorVoidable.Avoidcontractimposesnolegalrightsorobligationsuponthepartiesandisnotenforceablebyacourt.Itis,ineffect,nocontractatall.

Avoidablecontractisalegallyenforceableagreement,butitmaybetreatedasneverhavingbeenbindingonapartywhowassufferingfromsomelegaldisabilityorwhowasavictimoffraudatthetimeofitsexecution.Thecontractisnotvoidunlessoruntilthepartychoosestotreatitassuchbyopposingitsenforcement.Avoidablecontractmayberatifiedeitherexpresslyorimpliedlybythepartywhohastherighttoavoidit.Anexpressratificationoccurswhenthatpartywhohasbecomelegallycompetenttoactdeclaresthatheorsheacceptsthetermsandobligationsofthecontract.Animpliedratificationoccurswhentheparty,byhisorherconduct,manifestsanintenttoratifyacontract,suchasbyperformingaccordingtoitsterms.Ratificationofacontractentailsthesameelementsasformationofanewcontract.Theremustbeintentandcompleteknowledgeofallmaterialfactsandcircumstances.OralAcknowledgmentofacontractandapromisetoperformconstitutesufficientratification.Thepartywhowaslegallycompetentatthetimethatavoidablecontractwassignedmaynot,however,assertitsvoidablenaturetoescapetheenforcementofitsterms.

WhichLawGovernsAlthoughageneralbodyofcontractlawexists,someaspectsofit,suchasconstruction(i.e.,theprocessofascertainingtheproperexplanationofequivocalterms),varyamongthedifferentjurisdictions.Whencourtsmustselectthelawtobeappliedwithrespecttoacontract,theyconsiderwhatthepartiesintendedastowhichlawshouldgoverntheplacewherethecontractwasenteredintoandtheplaceofperformanceofthecontract.Manycourtsapplythemoderndoctrineofthe"groupingofcontracts"orthe"centerofgravity,"inwhichthelawofthejurisdictionthathastheclosestormostsignificantrelationshipwiththematterinissueapplies.

Courtsgenerallyapplythelawthatthepartiesexpresslyorimpliedlyintendtogovernthecontract,providedthatitbearsareasonablerelationtothetransactionandthepartiesactedingoodfaith.Somejurisdictionsfollowthelawoftheplacewherethecontractwasperformed,unlesstheintentofthepartiesistothecontrary.Whereforeignlawgoverns,contractsmayberecognizedandenforcedunderthedoctrineofcomity(i.e.,theacknowledgmentthatone



nationgiveswithinitsterritorytothelegislative,executive,orjudicialactsofanothernation).

ElementsofaContractTherequisitesforformationofalegalcontractareanoffer,anacceptance,competentpartieswhohavethelegalcapacitytocontract,lawfulsubjectmatter,mutualityofagreement,consideration,mutualityofobligation,and,ifrequiredundertheStatuteofFrauds,awriting.

OfferAnofferisapromisethatis,byitsterms,conditionaluponanact,forbearance,orreturnpromisebeinggiveninexchangeforthepromiseoritsperformance.Itisademonstrationofwillingnesstoenterintoabargain,madesothatanotherpartyisjustifiedinunderstandingthathisorherassenttothebargainisinvitedandwillconcludeit.Anyoffermustconsistofastatementofpresentintenttoenteracontractadefiniteproposalthatiscertaininitstermsandcommunicationoftheoffertotheidentified,prospectiveofferee.Ifanyoftheseelementsaremissing,thereisnooffertoformthebasisofacontract.

Preliminarynegotiations,advertisements,invitationstobidPreliminarynegotiationsareclearlydistinguishedfromoffersbecausetheycontainnodemonstrationofpresentintenttoformcontractualrelations.Nocontractisformedwhenprospectivepurchasersrespondtosuchterms,astheyaremerelyinvitationsorrequestsforanoffer.Unlessthisinterpretationisemployed,anypersoninapositionsimilartoasellerwhoadvertisesgoodsinanymediumwouldbeliablefornumerouscontractswhenthereisusuallyalimitedquantityofmerchandiseforsale.Anadvertisement,pricequotation,orcatalogueiscustomarilyviewedasonlyaninvitationtoacustomertomakeanofferandnotasanofferitself.Thecourtsreasonthatanestablishmentmightnothavesufficientstocktosatisfypotentialdemandandthatitwouldnotbereasonableforacustomertoexpecttoformabindingcontractbyrespondingtoadvertisementsthatareintendedtomakeconsumersawareofaproductforsale.Inaddition,thecourtshaveheldthatanadvertisementisanofferforaunilateralcontractthatcanberevokedatthewilloftheofferor,thebusinessenterprise,priortoperformanceofitsterms.

Anexceptionexists,however,tothegeneralruleonadvertisements.Whenthequantityofferedforsaleisspecifiedandcontainswordsofpromise,suchas"firstcome,firstserved,"courtsenforcethecontractwherethestorerefusestoselltheproductwhenthepriceistendered.Wheretheofferisclear,definite,andexplicit,andnomattersremainopenfornegotiation,acceptanceofitcompletesthecontract.Newconditionsmaynotbeimposedontheofferafterithasbeenacceptedbytheperformanceofitsterms.

Anadvertisementorrequestforbidsforthesaleofparticularpropertyortheerectionorconstructionofaparticularstructureismerelyaninvitationforoffersthatcannotbeacceptedbyanyparticularbid.Asubmittedbidis,however,anoffer,whichuponacceptancebytheoffereebecomesavalidcontract.

MistakeinsendingofferIfanintermediary,suchasatelegraphcompany,errsinthetransmissionofanoffer,mostcourtsholdthatthepartywhoselectedthatmethodofcommunicationisboundbythetermsoftheerroneousmessage.Thesameruleappliestoacceptances.Inreachingthisresult,courtsregardthetelegraphcompanyastheagentofthepartywhoselectedit.Othercourtsjustifytheruleonbusinessconvenience.Afewcourtsrulethatifthereisanerrorintransmission,thereisnocontract,onthegroundsthateitherthetelegraphcompanyisanIndependentContractorandnotthesender'sagent,ortherehasbeennomeetingofthemindsoftheparties.However,anoffereewhoknows,orshouldknow,ofthemistakeinthetransmissionofanoffermaynottakeadvantageoftheknownmistakebyacceptingtheofferheorshewillbeboundbytheoriginaltermsoftheoffer.

TerminationofanofferAnofferremainsopenuntiltheexpirationofitsspecifiedtimeperiodor,ifthereisnotimelimit,untilareasonabletimehaselapsed.Areasonabletimeisdeterminedaccordingtowhatareasonablepersonwouldconsidersufficienttimetoaccepttheoffer.

Thedeathorinsanityofeitherparty,beforeanacceptanceiscommunicated,causesanoffertoexpire.Iftheofferhasbeenaccepted,thecontractisbinding,evenifoneofthepartiesdiesthereafter.Thedestructionofthesubject



matterofthecontractconditionsthatrenderthecontractimpossibletoperformorthesuperveningillegalityoftheproposedcontractresultsintheterminationoftheoffer.

Whentheofferor,eitherverballyorbyconduct,clearlydemonstratesthattheofferisnolongeropen,theofferisconsideredrevokedwhenlearnedbytheofferee.Whereanofferismadetothegeneralpublic,itcanberevokedbyfurnishingpublicnoticeofitsterminationinthesamewayinwhichtheofferwaspublicized.

IrrevocableoffersAnoptionisarightthatispurchasedbyapersoninordertohaveanofferremainopenatagreeduponpriceandterms,foraspecifiedtime,duringwhichitisirrevocable.Itconstitutesanexceptiontothegeneralrulethatanoffermaybewithdrawnpriortoacceptance.Theofferormaynotwithdrawthisofferbecausethatpartyisboundbytheconsiderationgivenbytheofferee.Theoffereeisfree,however,todecidewhetherornottoaccepttheoffer.

Mostcourtsholdthatanofferforaunilateralcontractbecomesirrevocableassoonastheoffereestartstoperformtherequestedact,becausethatactionservesasconsiderationtopreventrevocationoftheoffer.Whereitisdoubtfulwhethertheofferinvitesanact(asinthecaseofaunilateralcontract)orapromise(asinthecaseofabilateralcontract),thepresumptionisinfavorofapromise,andthereforeabilateralcontractarises.Ifanoffertoformaunilateralcontractrequiresseveralacts,itisinterpretedasinvitingacceptancebycompletionoftheinitialact.Performanceofthebalanceconstitutesaconditiontotheofferor'sdutyofperformance.Wheresuchanofferinvitesonlyasingleact,itincludesbyimplicationasubsidiarypromisetokeeptheofferopeniftheoffereewillcommenceperformance.Somecourtsholdthatanofferforaunilateralcontractmayberevokedatanytimepriortocompletionoftheactbargainedfor,evenaftertheoffereehaspartiallyperformedit.RejectionofanofferAnofferisrejectedwhentheofferorisjustifiedinunderstandingfromthewordsorconductoftheoffereethatheorsheintendsnottoaccepttheoffer,ortotakeitunderfurtheradvisement.Rejectionmightcomeintheformofanexpressrefusaltoacceptanofferbyacounteroffer,whichisanewproposalthatrejectstheofferbyimplicationorbyaconditionalacceptancethatoperatesasacounteroffer.Theoffermaycontinue,however,iftheoffereeexpresslystatesthatthecounteroffershallnotconstitutearejectionoftheoffer.

Ifanofferisrejected,thepartywhomadetheoriginaloffernolongerhasanyliabilityforthatoffer.Thepartywhorejectedtheoffermaynotsubsequently,athisorherownoption,convertthesameofferintoacontractbyasubsequentacceptance.Insuchacase,theconsentoftheofferormustbeobtainedforacontracttobeformed.

AcceptanceAcceptanceofanofferisanexpressionofassenttoitsterms.Itmustbemadebytheoffereeinamannerrequestedorauthorizedbytheofferor.Anacceptanceisvalidonlyiftheoffereeknowsoftheoffertheoffereemanifestsanintentiontoaccepttheacceptanceisunequivocalandunconditionalandtheacceptanceismanifestedaccordingtothetermsoftheoffer.

Thedeterminationofavalidacceptanceisgovernedbywhetherapromiseoranactbytheoffereewasthebargainedforresponse.Sincetheacceptanceofaunilateralcontractrequiresanactratherthanapromise,itisunnecessarytofurnishnoticeofintendedperformanceunlesstheofferorrequestedit.If,however,theoffereehasreasontobelievethattheofferorwillnotlearnoftheacceptancewithreasonablepromptness,thedutyoftheofferorisdischargedunlesstheoffereemakesareasonableattempttogivenoticetheofferorlearnsoftheperformanceortheofferindicatesthatnonoticeisrequired.

Inbilateralcontracts,theofferiseffectivewhentheoffereereceivesit.Theoffereemayacceptituntiltheoffereereceivesnoticeofrevocationfromtheofferor.Thereafter,anofferisrevoked.Underthemajorityrule,whichisknownasthe"mailboxrule,"anacceptanceiseffectiveupondispatchiftheofferorexplicitlyauthorizesthatmethodofacceptancetobeemployedbytheofferee,eveniftheacceptanceislostordestroyedintransit.

Themajorityruleisinapplicable,however,unlesstheacceptanceisproperlyaddressedandpostageprepaid.Ithasnoapplicationtomostoptioncontracts,asacceptanceofanoptioncontractiseffectiveonlywhenreceivedbytheofferor.



Iftheacceptancemodeusedbytheoffereeisimplicitlyauthorizedbytheofferor,suchastheselectionbytheoffereeofthesamemethodusedbytheofferor,whoneglectedtodesignateamethodofcommunication,anacceptanceiseffectiveupondispatchifitiscorrectlyaddressedandtheexpenseofitsconveyanceisprepaid.Aswithexpresslyauthorizedmethods,theacceptanceneednoteverreachtheofferorinordertoformthecontract.

Insomejurisdictions,theuseofamethodnotexpresslyorimpliedlyauthorizedbytheofferor,evenifmorerapidinnature,resultsinacontractonlyuponreceiptoftheacceptance.Inmostjurisdictions,however,iftheacceptancemodeisinherentlyfaster,itisdeemedtobeanimpliedlyauthorizedmeans,andacceptanceiseffectiveupondispatch.

Iftheacceptanceistransmittedbyanexpresslyorimpliedlyauthorizedmethodtothewrongaddress,itiseffectiveonlyuponreceiptbytheofferor.Awrongaddressisanyaddressotherthanthatimplicitlyauthorized,eveniftheofferorwereinapositiontoreceivetheacceptanceatthesubstitutedaddress.

Anofferorwhospecificallystatesthatthereisnocontractuntiltheacceptanceisreceivedisentitledtoinsistupontheconditionofreceiptoruponanyotherprovisionconcerningthemannerandtimeofacceptancespecified.

Rejectionoftheofferorrevocationofconditionalacceptanceiseffectiveuponreceipt.Alateordefectiveacceptanceistreatedasacounteroffer,whichwillnotresultinacontractunlesstheofferoracceptsit.Ifofferscrossinthemail,therewillbenobindingcontract,asanoffermaynotbeacceptedifthereisnoknowledgeofit.

Asageneralrule,anoffermaybeacceptedonlybytheoffereeoranauthorizedagent.If,however,theofferiscontainedinanoptioncontract,itmaybethesubjectofanassignmentortransferwithouttheconsentoftheofferor,unlesstheoptioninvolvesapurchaseoncreditorexpresslyprohibitsanassignment.

Incontractsthatdonotinvolvethesaleofgoods,acceptancemustcomplyexactlywiththerequirementsoftheoffer(thisisknownasthe"mirrorimagerule"),andmustomitnothingfromthepromiseorperformancerequested.Anofferofaprizeinacontest,forexample,becomesabindingcontractwhenacontestantsuccessfullycomplieswiththetermsoftheoffer.Ifaresponsetoanofferpurportstoacceptit,butaddsqualificationsorconditions,thenitisacounterofferandnotanacceptance.

Acceptancemaybeinferredfromtheofferee'sacts,conduct,orsilencebutasageneralrule,silence,withoutmore,canneverconstituteacceptance.TheeffectofsilenceaccompaniedbyAmbiguitymustbeascertainedfromallthecircumstancesinthecase.

Priordealingsbetweenthepartiesmaycreateadutytoact.Silenceorthefailuretotakesomeactionundersuchcircumstancesmightconstituteacceptance.Forexample,ifthepartieshaveengagedinaseriesofbusinesstransactionsinvolvingthemailingofgoodsandpaymentbytherecipient,therecipientwillnotbepermittedtoretainanarticlewithoutpayingforitwithinareasonabletime,duetotheirpriordealings.Arecipientwhodoesnotintendtoacceptthegoodsisunderadutytoinformthesender.Silence,wherethereisadutytospeak,preventstheoffereefromrejectinganofferandtheofferorfromclaimingthatthereisnoacceptance.Ifownershiprightsareexercisedoveranitem,thismightbedeemedanacceptance.

UnsolicitedgoodsAtCommonLaw,therecipientofunsolicitedgoodsinthemailwasnotrequiredtoacceptortoreturnthem,butifthegoodswereused,acontractandaconcomitantobligationtopayforthemwerecreated.Today,inordertoofferprotectionagainstunwantedsolicitations,somestatestatuteshavemodifiedthecommonlawrulebyprovidingthatwhereunsolicitedmerchandiseisreceivedaspartofanoffertosell,thegoodsareanoutrightgift.Therecipientmayusethegoodsandisundernodutytoreturnorpayforthemunlessheorsheknowsthattheyweresentbymistake.

AgreementstoagreeAn"agreementtoagree"isnotacontract.Thistypeofagreementisfrequentlyemployedinindustriesthatrequirelongtermcontractsinordertoensureaconstantsourceofsuppliesandoutletofproduction.Mutualmanifestationsofassentthatare,inthemselves,sufficienttoformabindingcontractarenotdeprivedof



operativeeffectbythemerefactthatthepartiesagreetoprepareawrittenreproductionoftheiragreement.Indeterminingwhether,onagivensetoffacts,thereismerelyan"agreementtoagree"orasufficientlybindingcontract,thecourtsapplycertainrules.Ifthepartiesexpresstheirintentioneithertobeboundornotbounduntilawrittendocumentispreparedthenthatintentioncontrols.Iftheyhavenotexpressedtheirintention,buttheyexchangepromisesofadefiniteperformanceandagreeuponallessentialterms,thenthepartieshaveformedacontracteventhoughthewrittendocumentisneversigned.Iftheexpressionsofintentionareincompleteas,forexample,ifamaterialtermsuchasquantityhasbeenlefttofurthernegotiationthepartiesdonothaveacontract.Thedesignationofthematerialtermforfurthernegotiationisinterpretedasdemonstratingtheintentionofthepartiesnottobebounduntilacompleteagreementhasbeenreached.

CompetentPartiesAnaturalpersonwhoagreestoatransactionhascompletelegalcapacitytobecomeliablefordutiesunderthecontractunlessheorsheisaninfant,insane,orintoxicated.

InfantsAninfantisdefinedasapersonundertheageof18or21,dependingontheparticularjurisdiction.Acontractmadebyaninfantisvoidablebutisvalidandenforceableuntilorunlessheorshedisaffirmsit.Heorshemayavoidthelegaldutytoperformthetermsofthecontractwithoutanyliabilityforbreachofcontract.Infantsaretreatedinsuchawaybecausepublicpolicydeemsitdesirabletoprotecttheimmatureandnaiveinfantfromliabilityforunfaircontractsthatheorsheistooinexperiencedtonegotiateonequaltermswiththeotherparty.

Onceaninfantattainsmajority(i.e.,theageatwhichapersonisnolongerlegallyconsideredaninfant),heorshemustchooseeithertodisaffirmoravoidthecontract,ortoratifyoracceptit.Afterreachingtheageofmajority,apersonimplicitlyratifiesandbecomesboundtoperformthecontractifheorshefailstodisaffirmitwithinareasonabletime,whichisdeterminedbythecircumstancesoftheparticularcase.Apersonwhodisaffirmsacontractmustreturnanybenefitsorconsiderationreceivedunderitthatheorshestillpossesses.Ifsuchbenefitshavebeensquanderedordestroyed,thepersonusuallyhasnolegalobligationtorecompensetheotherparty.Thelawimposesliabilityontheinfantincertaincases,however.Althoughthecontractofaninfantorotherpersonmaybevoidable,thepersonstillmaybeliableinquasicontractinordertopreventUnjustEnrichmentforthereasonablevalueofgoodsorservicesfurnishediftheyarenecessariesthatarereasonablyrequiredfortheperson'shealth,comfort,oreducation.

Themajorityofcourtsholdthataninfantwhowillfullymisrepresentshisorheragemay,nevertheless,exercisethepowertoavoidthecontract.Asageneralrule,however,theinfantmustplacetheadultpartyinthestatusquoante(i.e.,hisorherpositionpriortothecontract).ThejurisdictionsareindisagreementinregardtowhetheraninfantisliableinTORT(i.e.,acivilwrongotherthanbreachofcontract)forwillfulmisrepresentationofhisorherage.Thisdivergencearisesfromtherulethatatortactionmaynotbemaintainedagainstaninfantifitessentiallyentailstheenforcementofacontract.Somecourtsregardtheactionforfraudthatwouldbecommencedagainsttheinfantasbeingbasedonthecontract.Othersrulethatthetortissufficientlyindependentofthecontractsothatthegrantingofreliefwouldnotinvolveindirectenforcementofthecontract.Theotherparty,however,isabletoavoidacontractenteredintoonthebasisofaninfant'sfraudulentMisrepresentationwithrespecttoageorothermaterialfactsbecauseheorsheistheinnocentvictimoftheinfant'sfraud.

MentalincapacityWhenapartydoesnotcomprehendthenatureandconsequencesofthecontractwhenitisformed,heorsheisregardedashavingmentalincapacity.Adistinctionmustbedrawnbetweenthosepersonswhohavebeenadjudicatedincompetentbyacourtandhavehadaguardianappointed,andthosementallyincompetentpersonswhohavenotbeensoadjudicated.Apersonwhohasbeendeclaredincompetentinacourtproceedinglacksthelegalcapacitytoenterintoacontractwithanother.Suchapersonisunabletoconsenttothecontract,asthecourthasdeterminedthatheorshedoesnotunderstandtheobligationsandeffectsofthecontract.Acontractmadebysuchapersonisvoidandwithoutanylegaleffect.Neitherpartymaybelegallycompelledtoperformorcomplywiththetermsofthecontract.Iftherehasbeennoadjudicationofinsanity,acontractmadebyamentallyincapacitatedindividualisvoidablebyhimorher.

Manycontractprinciplesthatapplytominorsalsoapplytoinsanepersons.Thereisanobligationtorecompensethe



injuredpartywhereavoidablecontractisavoided,andtopayfornecessariesbaseduponquasicontractforthereasonablevalueofthegoodsorservices.Theincompetent,aguardian,oraPersonalRepresentativeafterdeathmayavoidthecontract.Theincompetentmayratifyavoidablecontractonlyiftheyrecoverthecapacitytocontract.Therighttoavoidthecontractbelongstotheincompetenttheotherpartymaynotavoidthecontractualobligation.Acontractthatisordinarilyvoidablemaynotbesetasidewhenitisinherentlyfairtobothpartiesandhasbeenexecutedtosuchanextentthattheotherpartycannotberestoredtothepositionthattheyoccupiedpriortothecontract.

IntoxicatedpersonsAcontractmadebyanintoxicatedpersonisvoidable.Whenapersonisinebriatedatthetimeofenteringintoacontractwithanotherandsubsequentlybecomessoberandeitherpromisestoperformthecontractorfailstodisaffirmitwithinareasonabletimeafterbecomingsober,thenthatpersonhasratifiedhisorhervoidablecontractandislegallyboundtoperform.

SubjectMatterAnyundertakingmaybethesubjectofacontract,providedthatitisnotproscribedbylaw.Whenacontractisformedinrestraintoftrade,courtswillnotenforceit,becauseitimposesanillegalandunreasonableburdenoncommercebyhinderingcompetition.Contractsthatprovideforthecommissionofacrimeoranyillegalobjectivearealsovoid.

Futurerightsandliabilitiesperformingorrefrainingfromsomedesignatedact,orassumingparticularrisksorobligationsmayconstitutethebasisofacontract.Anideathatneverassumesconcreteformatthetimeofdisclosure,suchasaconceptforashortstory,eventhoughnewandunusual,maynot,however,bethesubjectofacontract.

Apersonmaynotlegallycontractconcerningarightthatheorshedoesnothave.Asellerofahomewhodoesnotpossesscleartitletothepropertymaynotpromisetoconveyitwithoutencumbrances.NeithermayasellerpromisethatpropertywillnotbeappropriatedbyEminentDomain,whichisaninherentpowerofgovernmentthatisnotsubjecttorestrictionsimposedbyindividuals.

MutualAgreementTheremustbeanagreementbetweentheparties,ormutualassent,foracontracttobeformed.Inorderforanagreementtoexist,thepartiesmusthaveacommonintentionorameetingofmindsonthetermsofthecontractandmustsubscribetothesamebargain.Asidefromcertainstatutoryexceptionspertainingtothesaleofgoods,asprescribedbyArticle2oftheUniformCommercialCode(UCC),ifanyoftheproposedtermsisnotsettled,orifnomethodofsettlementisprovided,thenthereisnoagreement.Thepartiesmaysettleonetermatatime,buttheircontractbecomescompleteonlywhentheyassenttothefinalterm.Anagreementisbindingifthepartiesconcurwithrespecttotheessentialtermsandintendtheagreementtobebinding,eventhoughallofthedetailsarenotdefinitelyfixed.Thequantityofgoodsareusuallyessentialtermsofthecontractthatmustbeagreeduponifthecontractistobeenforced.Exceptionstotherulerequiringthetermsofanagreementtobedefiniteandcertainarecontainedinarticle2oftheUCC,whichpermitsthecourtstoimplyreasonablythemissingtermsiftheessentialtermsunambiguouslydemonstratethemutualagreementoftheparties.

ConsiderationConsiderationisalegaldetrimentthatissufferedbythepromiseeandthatisrequestedbythepromisorinexchangeforhisorherpromise.Avalidcontractrequiressomeexchangeofconsideration.Asageneralrule,inabilateralcontract,onepromiseisvalidconsiderationfortheother.Inaunilateralcontract,theagreedperformancebytheoffereefurnishesthenecessaryconsiderationandalsooperatesasanacceptanceoftheoffer.

Considerationmayconsistofapromiseanactotherthanapromiseaforbearancefromsuingonaclaimthatisthesubjectofanhonestandreasonabledisputeorthecreation,modification,ordestructionofalegalrelationship.Itsignifiesthatthepromiseewillrelinquishsomelegalrightinthepresent,orthatheorshewillrestricthisorherlegalfreedomofactioninthefutureasaninducementforthepromiseoftheotherparty.Itisnotsubstantiallyconcernedwiththebenefitthataccruestothepromisor.

Loveandaffectionarenotpermissibleformsofconsideration.Apromisetomakeagiftcontainsnoconsideration



becauseitdoesnotentailalegalbenefitreceivedbythepromisororalegaldetrimentsufferedbythepromisee.Becauseapromisetogiveagiftisfreelymadebythepromisor,whoisnotsubjecttoanylegaldutytodoso,thepromiseisnotenforceableunlessthereisPromissoryEstoppel.Promissoryestoppelisadoctrinebywhichacourtenforcesapromisethatthepromisorreasonablyexpectswillinduceactionorforbearanceonthepartofapromisee,whojustifiablyreliedonthepromiseandsufferedasubstantialdetrimentasaresult.Whereacourtenforcesapromisebyapplyingthisdoctrine,promissoryestoppelservesasasubstitutefortherequiredconsideration.

Atcommonlaw,courtsrefusedtoinquireintotheadequacyorfairnessofabargain,findingthatthepaymentofsomepriceconstitutedlegallysufficientconsideration.Ifoneisseekingtoprovemistake,misrepresentation,fraud,orduressortoassertasimilardefensetheinadequacyofthepricepaidforthepromisemightrepresentsignificantevidenceforsuchdefenses,butthelawdoesnotrequireadequacyofconsiderationinordertofindanenforceablecontract.

MutualityofObligationWherepromisesconstitutetheconsiderationinabilateralcontract,theymustbemutuallybinding.Thisconceptisknownasmutualityofobligation.Ifoneparty'spromisedoesnotactuallybindhimorherstosomeperformanceorforbearance,itisanillusorypromise,andthereisnoenforceablecontract.

Wherethecontractprovidesonepartywiththerighttocancel,theremightbenoconsiderationbecauseoflackofmutualityofobligation.Ifthereisanabsoluteandunlimitedrighttocanceltheobligation,thepromisebythepartywiththerightofcancellationisillusory,andthelackofconsiderationmeansthatthereisnocontract.Ifthepowertocancelthecontractisrestrictedinanymanner,thecontractisusuallyconsideredtobebinding.Performanceofavoidpromiseinadefectivebilateralcontractmayrendertheotherpromiselegallybinding,however.Forexample,invirtuallyallstates,anoralcontracttotransfertitletolandisnotmerelyunenforceable,itisabsolutelyvoid.(Seediscussionofthestatuteoffrauds,below.)Asellerwhoorallypromisestotransferlandtoapurchaser,forwhichthepurchaserorallypromisesadesignatedsum,maysuethepurchaserforthepriceifthepurchaserreceivestitletothelandfromtheseller.Thepurchaserisnotrelievedofhisorherpromisetopay,becauseoftheperformanceofthevoidoralpromisebytheseller.

Apromisetoperformanactthatoneislegallyboundtododoesnotqualifyasconsiderationforanotherpromise.

Pastconsiderationconsistsofactionsthatoccurredpriortothemakingofthecontractualpromise,withoutanypurposeofinducingapromiseinexchange.Itisnotvalid,becauseitisnotfurnishedasthebargainedforexchangeofthepresentpromise.Thereareexceptionstothisrule,suchasapresentpromisetopayadebtthathasbeendischargedinBankruptcy,whichconstitutesvalidconsiderationbecauseitrenewsaformerpromisetopayadebtthatwassupportedbyconsideration.

Moststatesdonotrecognizemoralobligationasconsideration,asthereisnoacceptablemethodofsettingtheparametersofmoralduty.Somecourtswillenforceamoralobligationwheretherehasbeenabenefitconferredonthepromisor.

StatuteofFraudsThestatuteoffraudswasenactedbytheEnglishParliamentin1677andhassincebeenthelawinbothEnglandandintheUnitedStatesinvaryingforms.Itrequiresthatcertaintypesofcontractsbeinwriting.Theprincipalcharacteristicofvariousstatelawsmodeledaftertheoriginalstatuteistheprovisionthatnosuitoractionshallbemaintainedonacontractunlessthereisanoteormemorandumofitssubjectmatter,termsandconditions,andtheidentityoftheparties,signedbythepartytobechargedorobligatedunderitoranauthorizedagent.Thepurposeofthestatuteistopreventtheproofofanonexistentagreementthroughfraudorperjuryinactionsforbreachofanallegedcontract.

RealityofConsentThepartiesmustmutuallyassenttotheproposedobjectivesandtermsofacontractinorderforittobeenforceable.Themanifestationofthecommonintentofthepartiesisdiscernedfromtheirconductorverbalexchanges.



Whatonepartysecretlyintendedisirrelevantifhisorherconductappearstodemonstrateagreement.Inafewlimitedcases,however,wherethereisnostatedexpressionoftheparties'intent,theirsubjectiveintentionsmayestablishanenforceablecontractifbothbelieveinthesametermsofthecontract.

Therewillbenobindingcontractwithouttherealconsentoftheparties.Apparentconsentmaybevitiatedbecauseofmistake,fraud,innocentmisrepresentation,duress,orundueinfluence,allofwhicharedefensestotheenforcementofthecontract.

MutualMistakeWhenthereisamutualMistakeofFactwithrespecttothesubjectofthecontract,thesubjectiveintentionofthepartiesisevaluatedbythecourtstodeterminewhethertherehadbeen,infact,ameetingofthemindsoftheparties.

Ifthemutualmistakesignificantlychangedthesubjectmatterofthecontract,acourtwillrefusetoenforcethecontract.If,however,thedifferenceinthesubjectmatterofthecontractconcernedsomeincidentalqualitythathasno(ornegligible)effectonthevalueofthecontract,thecontractisbinding,eventhoughthemistakealteredorremovedwhathadbeentheincentivetooneorbothpartiestoenterthecontract.

UnilateralMistakeOrdinarily,aunilateralmistake(i.e.,anerrormadebyoneparty)affordsnobasisforavoidingacontract,butacontractthatcontainsatypographicalerrormaybecorrected.Acontractmaybeavoidediftheerrorinvalueinwhatistobeexchangedissubstantial,orifthemistakeiscausedbyorknowntotheotherparty.UnilateralmistakesfrequentlyoccurwhereacontractorsubmitsanerroneousbidforaPublicContract.Wheresuchabidisaccepted,thecontractorwillbepermittedtoavoidthecontractonlyiftheagreementhasnotbeenexecutedoriftheotherpartycanbeplacedinthepositionthattheyoccupiedpriortothecontract.Ifthemistakeisobvious,thecontractwillnotbeenforced,butifitisinconsequential,thecontractwillbeupheld.Themistakemustconsistofaclericalerrororamistakeincomputation,asanerrorinjudgmentwillnotpermitacontractortoavoidacontract.

MistakeofLawWhenapartywhohasfullknowledgeofthefactsreachesanerroneousconclusionastotheirlegaleffect,suchaMISTAKEOFLAWwillnotinvalidateacontractoraffectitsenforceability.

IlliteracyIlliteracyneitherexcusesapartyfromthedutyoflearningthecontentsofawrittencontractnorpreventsthemutualagreementoftheparties.Anilliteratepersoniscapableofgivingrealconsenttoacontractthepersonhasadutytoasksomeonetoreadthecontracttohimorherandtoexplainit,ifnecessary.Illiteracycan,however,serveasabasisforinvalidatingacontractwhenconsideredinrelationtootherfactors,suchasfraudoroverreaching.Ifthepersonwhomtheilliteratedesignatestoreadorexplainthecontractmisrepresentsitandactsincollusionwiththeotherpartytothecontract,thecontractmaybesetaside.

FraudFraudpreventsmutualagreementtoacontractbecauseonepartyintentionallydeceivesanotherastothenatureandtheconsequencesofacontract.Itisthewillfulmisrepresentationorconcealmentofamaterialfactofacontract,anditisdesignedtopersuadeanothertoenterintothatcontract.Ifaspecialrelationshipexists,suchasthatofattorneyandclient,nondisclosureofamaterialfactisfraud.Manycourtshaveheldthatmeresilenceconcerningamaterialfactdidnotconstitutefraud,buttheemergingtrendistofindadutytodiscloseand,therefore,deliberateconcealmentofamaterialfactgivesrisetoanactionforfraud.

Acontractthatisbasedonfraudisvoidorvoidable,becausefraudpreventsameetingofthemindsoftheparties.Ifthefraudisinthefactum,(i.e.,duringtheexecutionofthecontract)sothatthepartywouldnothavesignedthedocumentifheorsheunderstooditsnature,thenthecontractisvoidabinitio(i.e.,fromitsinception).Thesignatoryisnotboundifadifferentcontractissubstitutedfortheonethatheorshehadintendedtoexecute.If,however,apartynegligentlychoosestosignthecontractwithoutreadingit,thennofraudexistsandthecontractisenforceable.Ifthefraudisintheinducement,bywhichapartyisfalselypersuadedtosignacontract,thetermsofwhichheorsheknowsandunderstands,thenthecontractisnotvoidbutisvoidablebytheinnocentparty,asthatpartyexecuteswhatisintendedtobeexecuted.If,however,duetofraud,acontractfailstoexpresstheagreementthatthepartiesintendedittoexpress,thenthedefraudedpartymayseekadecreeofreformation,bywhichthecourtwillrewritea



writtenagreementtoconformwiththeOriginalIntentoftheparties.

MisrepresentationwithoutFraudAcontractmaybeinvalidatedifitwasbasedonanyinnocentmisrepresentationpertainingtoamaterialmatteronwhichonepartyjustifiablyrelied.

DuressDuressisawrongfulactorthreatbyonepartythatcompelsanotherpartytoperformsomeact,suchasthesigningofacontract,whichheorshewouldnothavedonevoluntarily.Asaresult,thereisnotruemeetingofmindsofthepartiesand,therefore,thereisnolegallyenforceablecontract.Blackmail,threatsofphysicalviolence,orthreatstoinstitutelegalproceedingsinanabusivemannercanconstituteduress.Theconsensusofmostjurisdictionsisthatthethreattocommencelegalproceedings,whichotherwisemightbejustifiable,becomeswrongfulwhendonewiththecorruptintenttocoerceatransactionthatbearsnorelationtothesubjectofsuchproceedingsandisgrosslyunjusttothevictim.

Acontractthatisinducedbyduressiseithervoidorvoidable.Iftheduressconsistsofonepartytakingtheother'shandasamechanicalinstrumentbywhichtosignhisorhernametoacontract,thenthecontractisvoidabinitioforlackofanyintentonthevictim'sparttoperformtheact.Theresultisthesameifthevictimiscompelledtosignacontractatgunpointwithoutanyknowledgeofitscontents.Thesearehighlyunusualsituations.Inmostcasesinvolvingduress,thecontractisvoidable,andthepersonwhowassubjectedtotheduressmayaskthecourttodeclarethecontractunenforceable.

UndueInfluenceUndueinfluenceisunlawfulcontrolexercisedbyonepersonoveranotherinordertosubstitutethefirstperson'swillforthatoftheother.Itgenerallyoccursintwotypesofsituations.Inthefirst,apersontakesadvantageofthepsychologicalweaknessofanother,inordertoinfluencethatpersontoagreetoacontracttowhich,undernormalcircumstances,heorshewouldnototherwiseconsent.Thesecondsituationentailsundueinfluencebasedonafiduciaryrelationshipthatexistsbetweentheparties.Thisoccurswhereonepartyoccupiesapositionoftrustandconfidenceinrelationtotheother,asinfamilialorprofessionalclientrelationships.Thequestionofwhethertheassentofeachpartytothecontractisrealorinducedbyfactorsthatinhibittheexerciseoffreechoicedeterminestheexistenceofundueinfluence.Merelegitimatepersuasionandsuggestionthatdonotdestroyfreewillarenotconsideredundueinfluenceandhavenoeffectonthelegalityofacontract.

AssignmentsAnassignmentofacontractisthetransfertoanotherpersonoftherightsofperformanceunderit.Contractswerenotassignableatearlycommonlaw,buttodaymostcontractsareassignableunlessthenatureofthecontractoritsprovisionsdemonstratesthatthepartiesintendtomakeitpersonaltothemandthereforeincapableofassignmenttoothers.

JointandSeveralContractsJointandseveralcontractsalwaysentailmultiplepromisesforthesameperformance.Twoormorepartiestoacontractwhopromisetothesamepromiseethattheywillgivethesameperformanceareregardedasbindingthemselvesjointly,severally,orjointlyandseverally.

Promisesimposeseveralliabilityonlywhenpromisorssinglypromisetopayortoact.Ifthethreepromisorssinglypromisetopaytheparty$500,itisasthoughtherearethreediscreteandindividualcontracts,exceptthatthepromiseeistoreceiveatotalofonly$500.Thethreepromisorsdonotpromiseasaunit,buteachindividuallyassumestopaytheentiresum.

Jointliabilityensuesonlywhenpromisorsmakeonepromiseasaunit.Ifthreepromisorspromisetopay$500,thenthethreewillowethedebtasaunit,notindividually.Thepartymayenforcethecontractonlyagainstonepromisororagainstanynumberofjointpromisors.Thepromiseeisentitled,however,toonlyoneawardoftheamountdue.

Promisesimposejointandseveralliabilitywhenthepromisorspromisebothasaunitandindividuallytopayor



performaccordingtothetermsofthecontract.

Ifapromisorwhoisjointlyorjointlyandseverallyliableonacontractperformsorpaysthepromiseeinfull,thentheotherpromisorsaretherebydischargedfromtheirobligationsonthecontracttothepromisee,asheorshemayonlycollecttheamountduetohimorher.Thepromisorwhoperformed,however,hasarighttocontributionfromthecopromisorsthatis,therighttoreceivefromtheothercopromisorstheirproportionateshareofthedebt.Thegeneralruleisthatacoobligorwhohaspaidinexcessofhisorherproportionateshareisentitledtocontribution,unlessthereisaparticularagreementtothecontrary.

Jointandseveralpromisescanexistifapromisorpromisestopaytwopromiseesacertainsumofmoney.Thepromiseesarejointandseveralpromiseesorobligees,andthepromisorhasthedutytopay.Bothpromiseesareentitledtoperformanceofthepromisejointlyandseparately,eventhoughthereisonlyonepromisemadetotwopeople.Anyoneofthejointobligeesinacontracthasthepowertodischargethepromisorfromtheobligation.Ifthepromisorpaysonepromisee,thispaymentoperatesasadischargeofthepromisor'sliabilityunderthecontract.Thepromiseewhohasnotbeenpaidmaynotcompelthepromisortopayhimorher,asthepromisorhasbeendischargedbythepaymenttotheotherpromisee.Theunpaidpromiseemayseekcontributionfromthepromiseewhohasbeenpaid,however.

ThirdPartyBeneficiariesThereareonlytwoprincipalparties,theofferorandtheofferee,toanordinarycontract.Thetermsofthecontractbindoneorbothpartiestorenderperformancetotheotherinconsiderationofreceiving,orhavingreceived,theother'sperformance.Contractssometimesspecifythatthebenefitsaccruingtoonepartywillbeconferreduponathirdparty.Theeffectofathirdpartycontractistoprovide,toapartywhohasnotassentedtoit,alegalrighttoenforcethecontract.

Acreditorbeneficiaryisanonpartytoacontractwhoreceivesthebenefitwhenapromiseismadetosatisfyalegalduty.Forexample,supposethatadebtorowedacreditor$500.Thedebtorlends$500toathirdperson,whopromisestousethemoneytopaythedebtor'sdebt.Thethirdpersonisthepromisor,whomakesthepromisetobeenforced.Thedebtoristhepromisee,towhomthepromiseismade.Thecontractisbetweenthedebtorandthethirdperson,thepromisor,andtheconsiderationforthepromiseisthe$500loanthatthepromisorreceivedfromthedebtor.Thecreditoristhethirdpartybeneficiary.Ifthepromisorrefusestopaythecreditor$500,thenthecreditormaysuethepromisorandprevail.Althoughthecreditorisnotapartytotheircontract,boththedebtorandthepromisorintendthatthecreditorshouldbethebeneficiaryofthecontractandhaveenforceablerightsagainstthepromisor,sinceheorsheistopaythecreditor.Thedebtororthecreditormaysuetoenforcethepromisor'spromisetopay.Thecreditor'srighttoenforcethecontractbetweenthedebtorandthepromisoriseffectiveonlywhenheorshelearnsof,andassentsto,thecontract.Thecreditormayalsosuethedebtorforthe$500,asthedebtorhadalegaldutytopaythisloan.Thedebtorthenmaysuethepromisorforbreachofcontractforrefusingtopaythecreditor.

Adoneebeneficiaryofthecontractisanonpartywhobenefitsfromapromisethatismadeforthepurposeofmakingagifttohimorher.Adonorwishestogiveadonee$200asananniversarypresent.Thedonorplanstosellatelevisionsetfor$200toapurchaser,whopromisestopaythedoneethe$200directly.Thedoneeisadoneebeneficiaryofthepurchaser'spromisetopaythemoneyandmayenforcethisclaimagainstthepurchaser.Thedoneehasnoclaimagainstthedonor,thepromisee,asthedonorhasnolegaldutytothedoneebutismerelygivingthedoneeagift.However,thedonorwillbeabletosuethepurchaserforrefusaltopaythedonee,becauseitwouldbeabreachofthetermsoftheircontractofsale.

Thedifferencebetweenacreditorbeneficiaryandadoneebeneficiarybecomessignificantwhenthepartiestoacontractattempttoaltertherightsofthethirdpartybeneficiary.Thepromisorandthepromiseehavenorightorpowertoaltertheaccruedrightsofthedoneebeneficiarywithoutconsentunlessthispowerwasexpresslyreservedinthe



contract,regardlessofwhetherthedoneeknowsaboutthecontract.Adoneebeneficiary'srightsbecomeeffectivewhenthecontractismadeforhisorherbenefit,regardlessofwhetherheorsheknowsaboutthecontract.Incontrast,acreditorbeneficiary'srightsvestonlywhenthecreditorbeneficiarylearnsof,andassentsto,thecontract.

ConditionsandPromisesofPerformanceThedutyofperformanceundermanycontractsiscontingentupontheoccurrenceofadesignatedconditionorpromise.Aconditionisanactorevent,otherthanalapseoftime,thataffectsadutytorenderapromisedperformancethatisspecifiedinacontract.Aconditionmaybeviewedasaqualificationplaceduponapromise.Apromiseordutyisabsoluteorunconditionalwhenitdoesnotdependonanyexternalevents.Nothingbutalapseoftimeisnecessarytomakeitsperformancedue.Whenthetimeforperformanceofanunconditionalpromisearrives,immediateperformanceisdue.Adependentorconditionalpromiseisnoteffectiveuntiltheoccurrenceofsomeexternaleventthatthepartieshavespecified.Animpliedconditionisonethatthepartiesshouldhavereasonablycomprehendedtobepartofthecontractbecauseofitspresencebyimplication.

TypesofConditionsConditionsprecedent,conditionsconcurrent,andconditionssubsequentaretypesofconditionsthatarecommonlyfoundincontracts.Aconditionprecedentisaneventthatmustexistasafactbeforethepromisorincursanyliabilitypursuanttoit.Forexample,supposethatanemployerinformsanemployeethatiftheemployeesuccessfullycompletesanaccountingcourse,heorshewillreceive$500.Thecompletionofthecoursemustexistasafactbeforetheemployerwillbeliabletotheemployeewhenthatfactoccurs,theemployerbecomesliable.

Aconditionconcurrentmustexistasafactwhenbothpartiestoacontractaretoperformsimultaneously.Neitherpartyhasadutytoperformuntiltheotherhasperformedorhastenderedperformance.Practicallyspeaking,however,thepartywhowantstocompletethetransactionmustperforminordertoestablishthedutyofperformancebytheotherparty.Theperformancesareconcurrentlycontingentuponeachother.Concurrentconditionsareusuallyfoundincontractsforthesaleofgoodsandincontractsfortheconveyanceofland.

Aconditionsubsequentisonethat,whenitexists,endsthedutyofperformanceorpaymentunderthecontract.Forexample,supposethataninsurancecontractprovidesthatsuitagainstitforalosscoveredbythepolicymustbecommencedwithinoneyearoftheinsured'sloss.Ifthedestructionoftheinsured'sbuildingbyfireisariskthatthepolicycovers,thentheinsuredmustfilesuitagainsttheinsurerwithinthetimespecified,ortheconditionsubsequentwillendthedutyofthecompanypursuanttothepolicy.

SubstantialPerformanceThefailuretocomplystrictlywiththetermsofaconditionwillnotpreventrecoveryiftherehasbeensubstantialperformanceofthecontractualobligation.Courtscreatedthisdoctrineinordertopreventforfeituresandtoensurejustice.Whererecoveryispermittedforsubstantialperformance,itisoffsetbydamagesforinjuriescausedbyfailuretorendercompleteperformance.Courtsdeterminewhethertherehasbeenabreachorasubstantialperformanceofacontractbyevaluatingthepurposetobeservedtheexcusefordeviationfromtheletterofthecontractandthecrueltyofenforcedadherencetothecontract.Ifthedeviationfromthecontractwereaccidentalandresultedinonlyatrivialdifferencebetweenwhatwasrequiredbythecontractandwhatwasperformed,theplaintiffwillreceiveonlynominaldamages.

SatisfactoryPerformanceAcontractmaybecontingentuponthesatisfactionofaperson'sopinion,taste,orfancy.Mostcourtsapplyagoodfaithtestindeterminingwhetherrejectionofaperformancewasreasonable.Ifarejectionismadeinbadfaith,thecourtwillenforcethecontract.

Ifsatisfactioncanbemeasuredwithreferencetothecommercialvalueorcaliberofthesubjectmatterofthecontract,theperformancemustbeprovedtobedeficientintheserespectsandthedissatisfactionmustbeproventobesufficientlyreasonableandwellfoundedtojustifynonenforcementofthecontract.Thetestis:Whatwouldsatisfyareasonableperson?Theconditionofsatisfactionneednotbemetwhentheexpressionofdissatisfactionismadeinbadfaithandnotrelatedtothequalityorcommercialvalueofthesubjectofthecontract.



DivisibleContractsTheentireperformanceofacontractcanbeaconditiontotheotherparty'sdutytoperform.Ifthecontractislegallydivisible,theperformanceofadivisibleportioncanfulfilltheconditionprecedenttotheotherparty'scorrespondingdivisibleperformance.Acontractisdivisiblewhentheperformanceofeachpartyisdividedintotwoormorepartseachpartyowestheotheracorrespondingnumberofperformancesandtheperformanceofeachpartbyonepartyistheagreedexchangeforacorrespondingpartbytheotherparty.Ifitisdivisible,thecontract,forcertainpurposes,istreatedasthoughitwereanumberofcontracts,asinemploymentcontractsandleases.Ifanemployerhiresaprospectiveemployeeforoneyearataweeklysalary,thecontractisdivisible.Eachweek'sperformanceisaconstructiveorimpliedconditionprecedenttotheemployee'srighttoaweek'ssalary.Therighttothesalaryisnotcontingentonperformanceoftheobligationtoworkforoneyear.Inmostcontractsofemployment,thecourtsallowrecoverytotheemployeeforthenumberofweeksormonthsofservicerendered,onthetheorythatsuchcontractisdivisible.Thesameistrueforaleaseofrealpropertyoranapartment.Iftheleaseisbreachedbeforetheentiretermhasexpired,thetenantisliablefortheremainingrentaseachmonthoccurs,butisnotliablepriortothattime.Ineffect,thecourttreatstheleaseasacontractforeachmonth,withrentdueonthefirstofeachmonth.Inadivisiblecontract,theperformanceofaseparateunitthatistreatedasaseparatecontractentitlestheperformingpartytoimmediatepayment,whereasinanentirecontract,thepartywhoisfirsttoperformmustrenderfullperformanceinordertobeentitledtoperformancefromtheotherparty.

BreachofConditionsCompliancewithaconditioncanbeexcusedundercertaincircumstances.Asageneralrule,ifthefactswouldexcusecompliancewithacondition,theywillalsoexcuseperformanceofapromise.Anexcusefornonperformanceofaconditioncanexistinmanyforms,suchasawaiver(theintentionalrelinquishmentofaknownright)ofperformanceofthecondition.

IfanunintentionalfailuretoperformaconditionwouldresultinaForfeiture,acourtmayexcusecomplianceinordertopreventinjustice.Thedutyofperformancebytheotherpartyarisesjustasthoughtheconditionhasbeenfulfilledifcompliancewithaconditionisexcused.

DischargeofContractsThedutiesunderacontractaredischargedwhenthereisalegallybindingterminationofsuchdutybyaVoluntaryActofthepartiesorbyoperationoflaw.Amongthewaystodischargeacontractualdutyareimpossibilityorimpracticabilitytoperformpersonalservicesbecauseofdeathorillnessorimpossibilitycausedbytheotherparty.

ThetwomostsignificantmethodsofvoluntarydischargeareAccordandSatisfactionandnovation.Anaccordisanagreementtoacceptsomeperformanceotherthanthatwhichwaspreviouslyowedunderapriorcontract.Satisfactionistheperformanceofthetermsofthataccord.Bothelementsmustoccurinorderfortheretobedischargebythesemeans.

Anovationinvolvesthesubstitutionofanewpartywhiledischargingoneoftheoriginalpartiestoacontractbyagreementofallthreeparties.Anewcontractiscreatedwiththesametermsastheoriginalone,butthepartiesaredifferent.

Contractualliabilitymaybevoluntarilydischargedbytheagreementoftheparties,byestoppel,andbythecancellation,intentionaldestruction,orsurrenderofacontractundersealwithintenttodischargetheduty.

Thedischargeofacontractualdutymayalsooccurbyoperationoflawthroughillegality,merger,statutoryrelease,suchasadischargeinbankruptcy,andobjectiveimpossibility.Mergertakesplacewhenonecontractisextinguishedbecauseitisabsorbedintoanother.

Therearetwotypesofimpossibilityofperformancethatdischargethedutyofperformanceunderacontract.Subjectiveimpossibilityisduetotheinabilityoftheindividualpromisortoperform,suchasbyillnessordeath.Objectiveimpossibilitymeansthatnoonecanrendertheperformance.Thedestructionofthesubjectmatterofthecontract,thefrustrationofitspurpose,orsuperveningimpossibilityafterthecontractisformedaretypesofobjective



impossibility."Impracticability"becauseofextremeandunreasonabledifficulty,expense,injury,orlossinvolvedisconsideredpartofimpossibility.

BreachofContractAnunjustifiablefailuretoperformallorsomepartofacontractualdutyconstitutesabreachofcontract.Itensueswhenapartywhohasadutyofimmediateperformancefailstoperform,orwhenonepartyhindersorpreventstheperformanceoftheotherparty.

Atotal,major,material,orsubstantialbreachofcontractconstitutesafailuretoperformproperlyamaterialpartofthecontract.Apartialorminorbreachofcontractismerelyaslightdeviationfromthebargainedforperformance.AbreachmayoccurbyAnticipatoryRepudiation,wherebythepromisor,withoutjustificationandbeforecommittingabreach,makesanaffirmativestatementtothepromisee,indicatingthatheorshewillnotorcannotperformthecontractualduties.

Thedifferencesinthetypesofbreacharesignificantinascertainingthekindsofremediesanddamagesavailabletotheaggrievedparty.

RemediesDamages,reformation,Rescission,restitution,andSpecificPerformancearethebasicremediesavailableforbreachofcontract.

DamagesThetermdamagessignifiesasumofmoneyawardedasacompensationforinjurycausedbyabreachofcontract.Thetypeofbreachgovernstheextentofthedamagestobeawarded.

FailuretoperformThemeasureofdamagesinbreachofcontractcasesisthesumthatwouldbenecessarytorecompensetheinjuredpartyfortheamountoflossesincurredthroughbreachofcontract.Theinjuredpartyshouldbeplacedinthepositionthatheorshewouldhaveoccupiedifthecontracthadbeenperformed,andtheyareentitledtoreceivethebenefitofthebargain,thenetgainthatwouldhaveaccruedtothemunderthecontract.Theinjuredpartyisnot,however,tobeputinabetterpositionthanheorshewouldhaveoccupiedhadperformancetakenplace.

Damagesforanticipatoryrepudiationareordinarilyassessedasofthescheduledperformancedatesthatarefixedbythebreachedcontract.Themeasureofdamagesforthebreachofaninstallmentcontractisdeterminedatthetimeeachinstallmentisdue.

WhenthepartieshaveincludedaLiquidatedDamagesclauseinacontract,itgenerallywillbeenforced.Suchclauseisaprioragreementbythepartiesastothemeasureofdamagesuponbreach.Additionaldamagesmaynotbeclaimed.

PartialperformanceWhenthedefendanthasfailedtocompleteperformanceofanagreementaccordingtoitsterms,theplaintiffmayrecoversuchdamagesaswillcompensatehimorhertothesameextentasthoughthecontracthadbeencompletelyperformed.Thecustomarymeasureofdamagesisthereasonableexpenseofcompletion.Completionreferstoafulfillmentofthesamework,ifpossible,whichdoesnotinvolveunreasonableeconomicwaste.Theinjuredpartyisnotautomaticallyentitledtorecoverthedifferencebetweenthecontractpriceandtheamountitwouldcosttohavetheworkcompletedwhenacontractisbreachedafterpartialperformanceheorshewillbeentitledtorecoverthatamountonlyifcompletionisactuallyaccomplishedatagreatercost.

Aprovisioninabuildingcontractthatallowstheowner,intheeventofadefaultbythecontractor,tocompletethejobandtodeducttheexpensesfromthecontractpricedoesnotprecludetheowner'srecoveringdamagesalsowherethecontractorintentionallyleavestheworkundone.Aplaintiffmayalsorecoverthemonetaryvalueofmaterialsthatarelostthroughabreachofcontract.

Aplaintiffcontractorwhosubsequentlyperformstheworkuponbreachofacontractwillordinarilyrecoverthe



reasonablevalueofthelaborandmaterialsthatheorshehasfurnished,withthecontractpriceusedasaguideline.Theawardmaynotproperlyexceedthebenefitthattheownerreceivedintheproperlycompletedwork,anditwillbereducedbytheamountofdamagesthattheownerincursasaresultofthecontractor'sfailuretocompleteperformanceofthecontractualobligation.Ifthevalueoftheworkperformedexceedsthecontractprice,thecontractorwillnotreceivetheexcess.

Whereacontractfortheperformanceofservicesexistswithpaymenttobemadeininstallments,andtheobligationtopayforeachinstallmentconstitutesanindependentpromise,theindividualwhoisentitledtopaymentmayrecoveronlytheinstallmentsthatareduewhenthesuitisbrought.

DefectiveperformanceDamagesfordefectiveperformanceofacontractualagreementaremeasuredbycalculatingthedifferenceinvaluebetweenwhatisactuallytenderedandwhatisrequiredasperformanceundertheagreement.Iftheperformancetenderediseitherofnovalueorunsuitableforthepurposethatthecontractcontemplated,thepropermeasureofdamagesisthesumthatisnecessarytorepairthedefect.Ifadefectcanbeeasilyremediedthroughrepairs,themeasureofdamagesisthepriceoftherepairsperformed.

Generally,thetotalcontractpricemaynotberecoveredforsubstantialperformance.Iftheplaintifffurnishedmaterialsforitemsthatweremanufacturedfortheplaintiffinsuchamannerastoberenderedworthless,thepropermeasureofdamagesordinarilyhasbeenheldtobethediscrepancybetweenthecontractpriceandthemarketpriceofsuchitemsiftheyhadbeenmanufacturedaccordingtothecontractterms.

Whenabuildingorconstructioncontractisdefectivelyperformed,thepropermeasureofdamagesisthedifferencebetweenthevalueofthepropertywiththedefectivework,anditsvaluehadtherebeenstrictcompliancewiththecontract.Wherethecontractordeliberatelydeviatesfromthecontractualagreement,buttherehasbeennosubstantialperformance,damagesaredeterminedbytheactualexpenseofreconstructingthebuildingaccordingtothetermsofthecontract.

DelayinperformanceThelossprecipitatedbythewrongfuldelayoftheperformanceofacontractiscalculatedbyfixingtherentaloruseofthepropertyorinterestasaresultofthelossincurredthroughincreasedmaterialandlaborexpenses,asdistinguishedfromwhatthevaluewouldhavebeenhadthecontractbeenperformedontime.

ReformationReformationisanequitableremedythatisappliedwhenthewrittenagreementdoesnotcorrespondtothecontractthatwasactuallyformedbytheparties,asaresultoffraudormutualmistakeindraftingtheoriginaldocument.Quasicontractualreliefforthereasonablevalueofservicesrenderedisalsoavailable,althoughitappliesonlywhenthereisnoenforceablecontract.

RescissionRescissionterminatesthecontract,andthepartiesarerestoredtothepositionofneverhavingenteredintothecontractinthefirstplace.

RestitutionRestitutionisaremedythatisdesignedtorestoretheinjuredpartytothepositionthattheyoccupiedpriortotheformationofthecontract.

SpecificPerformanceSpecificperformanceisanequitableremedybywhichacontractingpartyisrequiredtoexecute,asnearlyaspracticable,apromisedperformancewhenmonetarydamageswouldbeinadequatetocompensateforthebreach.Acontracttoselllandisspecificallyenforceablebecauselandisconsideredtobeuniqueandnotcompensablebymoney.Inaddition,propertythathassentimentalvalue,aswellasantique,heirloom,oroneofakindarticles,areviewedasunique,andthereforeitwouldbeimpossibletoestimatedamages.Apersonalservicecontractoranemploymentcontract,however,cannotbespecificallyenforcedbecausetheThirteenthAmendmenttotheU.S.ConstitutionprohibitsSlavery.If,however,thecontractproscribesapersonfromperformingsomeact,breachofthatnegativecovenantmaybespecificallyenforced.

ParolEvidenceRule



Tentativetermsdiscussedinpreliminarynegotiationsaresubsumedbytheprovisionsofthecontractexecutedbytheparties.TheParolEvidencerulegovernstheadmissibilityofevidenceotherthantheactualagreementwhenadisputearisesoverawrittencontract.Whenpartiesmemorializetheiragreementsinwriting,allpriororalandwrittenagreements,andallcontemporaneousoralagreements,mergeinthewriting,whichisalsoknownasanintegration.Thewrittencontractmaynotbemodified,altered,orvariedbyparolororalevidence,providedthatithasbeenlegallyexecutedbyapersonwhointendsforittorepresentthefinalandcompleteexpressionofhisorherunderstandingofthecontract.Thisisnotthecase,however,wheretherehasbeensomemistakeorfraudinthedraftingofthedocument.

Theparolevidenceruleeffectuatesthepresumedintentionofthepartiesachievescertaintyandfinalityastotherightsanddutiesofthecontractingpartiesandpreventsfraudulentandperjuredclaims.Ithasnoapplicationtosubsequentoralcontractsthatmodifyordischargethewrittencontract,however.

AmbiguityAmbiguityinthetermsofacontractexistswhenthecourtcannot,afterapplyingtherulesortoolsofinterpretation,giveameaningtothelanguageusedinanagreementordocument.Theplainmeaningruleisoftenappliedjudiciallytoascertainwhetheracontractisambiguous.Ifthecontractappearstothetrialjudgetobeclearandunequivocalonitsface,thenthereisnoneedforparolevidence.However,whenawritingisambiguous,parolevidenceisadmissableonlytoelucidate,nottovary,theinstrumentaswritten.

Courtshaveusedotherrulestoresolveambiguousterms.Whereneitherpartyknows,orhasreasontoknow,oftheambiguity,orwherebothpartiesknoworhavereasontoknowofit,theambiguoustermisgiventhemeaningthateachpartyintendedittoconvey.Asapracticalmatter,thismeansthatifthepartiesgivetheequivocalexpressionthesamemeaning,thenacontractisformedbutiftheygiveitadifferentmeaning,thenthereisnocontract,atleastiftheambiguitypertainstoamaterialterm,asthereisnomeetingoftheirminds.Whereonepartyknows,orhasreasontoknow,oftheambiguity,andtheotherdoesnot,itconveysthemeaninggiventoitbythelatterwhichmeans,inessence,thatthereisacontractpredicateduponthemeaningofthepartywhoiswithoutfault.

ContractsfortheSaleofGoodsThenatureofatransactiondeterminesthetypeofcontractlawthatapplies.Generalcontractlawdescribedaboveappliestosuchtransactionsasserviceagreementsandsalesofrealproperty.Contractsforthesaleofgoods,however,aregovernedbyArticle2oftheUCC,whichhasbeenadopted,atleastinpart,ineverystate.TheUCCdefines"goods"asallthingsthataremovableatthetimeofthesale.

ThedraftersoftheUCCadheredtoamoreliberalviewofcontracts,sosomeofitsprovisionsdiffersignificantlyfromthosethatarefoundingeneralcontractlaw.Acontractforthesaleofgoodsmaybemadeinanymannerthatissufficienttoshowagreement,andcourtsmayconsidertheconductofthepartieswhenmakingthisdetermination.Anoffertosellgoodsmaybemadeinanymannerthatinvitesacceptance.CourtsalsomayconsidertheCourseofPerformancebetweenthepartieswhendeterminingwhetheracontractforthesaleofgoodsexists.

TheUCCprovidesfor,andrecognizes,certainwarrantiesthatrelatetothegoodsbeingsold.Forexample,anaffirmationoffactorapromisemadebythesellertothebuyercreatesanexpresswarranty.Salesalsocreateimpliedwarranties,suchastheimpliedwarrantiesofmerchantabilityandfitnessforaparticularpurpose.RemediesandotherdamagesforbreachofasaleofgoodscontractarealsogovernedbytheUCC.Inadditiontomonetarydamages,buyersandsellersmaytakeseveralactionswhentheotherpartybreachesasalescontract.Forexample,asellerwhohasbeeninjuredbyabreachofcontractmaywithholddeliveryofthegoodsresellthegoodsthataresubjecttothecontractorrecovermonetarydamages.Abuyermayseekto"cover"bymakingagoodfaithpurchaseofsubstitutegoodsfromadifferentseller,andthenmayrecoverfromtheoriginalselleranydifferencebetweenthesubstitutecontractandtheoriginalcontract.



Furtherreadings

Collins,Hugh.1999.RegulatingContracts.NewYork:OxfordUniv.Press.

DiMatteo,LarryA.1998.ContractTheory:TheEvolutionofContractualIntent.EastLansing:MichiganStateUniv.Press.

Hare,J.I.Clark.2003.TheLawofContracts.Clark,N.J.:LawbookExchange.

Marsh,P.D.V.2001.ContractNegotiationHandbook.Burlington,Vt:Gower.

ContractsChristopherC.Langdell,1871

The1871publicationofASelectionofCasesontheLawofContractsbyChristopherColumbusLangdellrevolutionizedlegaleducation.Thebook,whichconsistedofacollectionofmostlyEnglishjudicialopinions,wasmeanttoassisttheprofessorindevelopingwithinthestudentascientificapproachtothelaw.Langdellchosethecasesforthefundamentalprinciplestheycontained.Studentswereexpectedtodispensewiththeideathattheywereattendingavocationalschool.Instead,theyweretoapplytheprinciplestheylearnedinthescientificsearchfortruth.InhisprefaceLangdellsaidthathesoughtto"select,classify,andarrangeallcaseswhichhadcontributedinanyimportantdegreetothegrowth,development,orestablishmentofanyofitsessentialdoctrines."

ContractsPREFACE

Ientereduponthedutiesofmypresentposition,ayearandahalfago,withasettledconvictionthatlawcouldonlybetaughtorlearnedeffectivelybymeansofcasesinsomeform.IhadentertainedsuchanopinioneversinceIknewanythingofthenatureoflaworlegalstudybutitwaschieflythroughmyexperienceasalearnerthatitwasformed,aswellassubsequentlystrengthenedandconfirmed.Ofteachingindeed,asabusiness,IwasentirelywithoutexperiencenorhadIgivenmuchconsiderationtothatsubject,exceptsofaraspropermethodsofteachingareinvolvedinpropermethodsofstudy.

Now,however,Iwascalledupontoconsiderdirectlythesubjectofteaching,nottheoreticallybutpractically,inconnectionwithalargeschoolwithitsmoreorlesscomplicatedorganization,itsdailyroutine,anddailyduties.Iwasexpectedtotakealargeclassofpupils,meetthemregularlyfromdaytoday,andgivethemsystematicinstructioninsuchbranchesoflawashadbeenassignedtome.Toaccomplishthissuccessfully,itwasnecessary,first,thattheeffortsofthepupilsshouldgohandinhandwithmine,thatis,thattheyshouldstudywithdirectreferencetomyinstructionsecondly,thatthestudythusrequiredofthemshouldbeofthekindfromwhichtheymightreapthegreatestandmostlastingbenefitthirdly,thattheinstructionshouldbeofsuchacharacterthatthepupilsmightatleastderiveagreateradvantagefromattendingitthanfromdevotingthesametimetoprivatestudy.Howcouldthisthreefoldobjectbeaccomplished?Onlyonemodeoccurredtomewhichseemedtoholdoutanyreasonableprospectofsuccessandthatwas,tomakeaseriesofcases,carefullyselectedfromthebooksofreports,thesubjectalikeofstudyandinstruction.ButhereIwasmetbywhatseemedatfirsttobeaninsuperablepracticaldifficulty,namely,thewantofbooksforthoughitmightbepracticable,incaseofprivatepupilshavingfreeaccesstoacompletelibrary,toreferthemdirectlytothebooksofreports,suchacoursewasquiteoutofthequestionwithalargeclass,allofwhomwouldwantthesamebooksatthesametime.Norwouldsuchacoursebewithoutgreatdrawbacksandinconveniences,eveninthecaseofasinglepupil.Ashewouldalwayshavetogowherethebookswere,andcouldonlyhaveaccesstothemthereduringcertainprescribedhours,itwouldbeimpossibleforhimtoeconomizehistimeorworktothebestadvantageandhewouldbeliabletobeconstantlyhauntedbytheapprehensionthathewas



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AModeTendParentingPartnership

spendingtime,labor,andmoneyinstudyingcaseswhichwouldbeinaccessibletohiminafterlife.

Itwaswithaviewtoremovingtheseobstacles,thatIwasfirstledtoinquireintothefeasibilityofpreparingandpublishingsuchaselectionofcasesaswouldbeadaptedtomypurposeasateacher.Themostimportantelementinthatinquirywasthegreatandrapidlyincreasingnumberofreportedcasesineverydepartmentoflaw.Inviewofthisfact,wasthereanysatisfactoryprincipleuponwhichsuchaselectioncouldbemade?Itseemedtomethattherewas.Law,consideredasascience,consistsofcertainprinciplesordoctrines.Tohavesuchamasteryoftheseastobeabletoapplythemwithconstantfacilityandcertainlytotheevertangledskeinofhumanaffairs,iswhatconstitutesatruelawyerandhencetoacquirethatmasteryshouldbethebusinessofeveryearneststudentoflaw.Eachofthesedoctrineshasarrivedatitspresentstatebyslowdegreesinotherwords,itisagrowth,extendinginmanycasesthroughcenturies.Thisgrowthistobetracedinthemainthroughaseriesofcasesandmuchtheshortestandbest,ifnottheonlywayofmasteringthedoctrineeffectuallyisbystudyingthecasesinwhichitisembodied.Butthecaseswhichareusefulandnecessaryforthispurposeatthepresentdaybearanexceedinglysmallproportiontoallthathavebeenreported.Thevastmajorityareuselessandworsethanuselessforanypurposeofsystematicstudy.Moreover,thenumberoffundamentallegaldoctrinesismuchlessthaniscommonlysupposedthemanydifferentguisesinwhichthesamedoctrineisconstantlymakingitsappearance,andthegreatextenttowhichlegaltreatisesarearepetitionofeachother,beingthecauseofmuchmisapprehension.Ifthesedoctrinescouldbesoclassifiedandarrangedthateachshouldbefoundinitsproperplace,andnowhereelse,theywouldceasetobeformidablefromtheirnumber.Itseemedtome,therefore,tobepossibletotakesuchabranchofthelawasContracts,forexample,and,withoutexceedingcomparativelymoderatelimits,toselect,classify,andarrangeallthecaseswhichhadcontributedinanyimportantdegreetothegrowth,development,orestablishmentofanyofitsessentialdoctrinesandthatsuchaworkcouldnotfailtobeofmaterialservicetoallwhodesiretostudythatbranchoflawsystematicallyandinitsoriginalsources.

West'sEncyclopediaofAmericanLaw,edition2.Copyright2008TheGaleGroup,Inc.Allrightsreserved.

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Burton'sLegalThesaurus,4E.Copyright2007byWilliamC.Burton.UsedwithpermissionofTheMcGrawHillCompanies,Inc.

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Discharge of Contracts Legal Definition of Discharge of Contracts