[Aspen Casebook Series 01] • Contracts · Cases and Doctrine by Barnett, Randy E. -- Read -- Imperial Library of Trantor

Index

Half Title Page Editorial Advisors Title Page Copyright Page About Wolters Kluwer Legal & Regulatory Solutions U.S. Dedication Page Summary of Contents Contents Preface Acknowledgments Part I Enforcing Private Agreements

Chapter 1 Introduction to Contract Law

A. Studying Contract Law

1. The Structure of This Book 2. The Three Dimensions of Law 3. The Restatement and the Uniform Commercial Code 4. How to Brief Cases for This Class

B. The Nature and History of Contract

Shaheen v. Knight Restatement (Second) of Contracts Historical Background: From Status to Contract Sir Henry Maine, Ancient Law Historical Background: The Rise of Assumpsit E. Allan Farnsworth, Contracts

C. The Boundaries of Contract

Jordan v. Knafel Relational Background Lawrence A. Cunningham, Contracts in the Real World: Stories of Popular Contracts and Why They Matter

Chapter 2 Damages for Breach of Contract

A. Why Study Remedies First? B. The Three Damage Interests

Legal Background: Introduction to Damage Interests E. Allan Farnsworth, Expectation, Reliance, and Restitution Interests Hawkins v. McGee McGee v. United States Fidelity & Guaranty Co. Relational Background: Before and After the Lawsuit Jorie Roberts, Hawkins Case: A Hair-Raising Experience Restatement (Second) of Contracts Nurse v. Barns Differentiating Damage Interests: A Problem Sullivan v. O’Connor J. O. Hooker & Sons v. Roberts Cabinet Co. Sales Contracts: The Uniform Commercial Code KGM Harvesting Co. v. Fresh Network Sales Contracts: The Uniform Commercial Code

C. Three Limitations on Damages

1. Remoteness or Foreseeability of Harm

Hadley v. Baxendale Historical Background: Putting Hadley in Context Richard Danzig, Hadley v. Baxendale: A Study in the Industrialization of the Law Hector Martinez and Co. v. Southern Pacific Transportation Co. Restatement (Second) of Contracts Morrow v. First National Bank of Hot Springs

2. Certainty of Harm

Chicago Coliseum Club v. Dempsey Relational and Historical Background: Why Didn’t Dempsey Fight Wills? The Role of Race Winston Cigarette Machine Co. v. Wells-Whitehead Tobacco Co. Restatement (Second) of Contracts Anglia Television Ltd. v. Reed Security Stove & Manufacturing Co. v. American Railway Express Co. Economics Background: The Subjectivity of Valuation Ludwig von Mises, Human Action

3. Avoidability of Harm

Rockingham County v. Luten Bridge Co. Relational Background: Why Did the County Change Its Mind? Why Did the Company Keep Building? Barak Richman, Jordi Weinstock & Jason Mehta, A Bridge, a Tax Revolt, and the Struggle to Industrialize: The Story and Legacy of Rockingham County v. Luten Bridge Co. Parker v. Twentieth Century-Fox Film Corp. Relational Background: A Feminist Interpretation of Parker Mary Joe Frug, Shirley MacLaine and the Mitigation of Damages Rule: Re-Uniting Language and Experience in Legal Doctrine Relational Background: The Rise and Fall of the Bloomer Girl Project Victor P. Goldberg, Framing Contract Law: An Economic Perspective Restatement (Second) of Contracts Neri v. Retail Marine Corp. Sales Contracts: The Uniform Commercial Code

D. Contracting Around the Default Rules of Damages

1. Express Limitations on Consequential and Incidental Damages

Sales Contracts: The Uniform Commercial Code

2. Liquidated Damages vs. Penalty Clauses

Kemble v. Farren Wassenaar v. Towne Hotel Restatement (Second) of Contracts Lake River Corp. v. Carborundum Co.

Chapter 3 Other Remedies and Causes of Action

A. Specific Performance and Injunctions

Legal Background: Introduction to Equitable Remedies Dan B. Dobbs, Introduction to Equity and Equitable Remedies 1. Contracts for Land

Loveless v. Diehl

2. Contracts for Goods

Cumbest v. Harris Scholl v. Hartzell Sedmak v. Charlie’s Chevrolet, Inc. Sales Contracts: The Uniform Commercial Code

3. Contracts for Personal Services

The Case of Mary Clark, A Woman of Colour Relational Background: The Nature of Mary Clark’s “Voluntary” Indenture Sandra Boyd Williams, The Indiana Supreme Court and the Struggle Against Slavery Lumley v. Wagner Relational Background: In the End Everyone Except the Lawyers Were Losers Stephen Waddams, Dimensions of Private Law Ford v. Jermon Duff v. Russell Historical and Relational Background: Sex and Specific Performance Lea S. VanderVelde, The Gendered Origins of the Lumley Doctrine: Binding Men’s Consciences and Women’s Fidelity Dallas Cowboys Football Club v. Harris Constitutional Background: The Thirteenth Amendment and Contractual Freedom Bailey v. State of Alabama

B. Restitution—Damage Interest and Cause of Action

1. Restitution for Breach of Contract

Bush v. Canfield Restatement (Second) of Contracts

2. Restitution to the Party in Breach

Britton v. Turner Vines v. Orchard Hills, Inc. Restatement (Second) of Contracts

3. Restitution and “Quasi-Contract”

Cotnam v. Wisdom Martin v. Little, Brown and Co.

C. Tortious Interference with Contract

Lumley v. Gye Historical and Relational Background: The Impact of Lumley v. Gye on Johanna Wagner Lea S. VanderVelde, The Gendered Origins of the Lumley Doctrine: Binding Men’s Consciences and Women’s Fidelity Restatement (Second) of Torts Texaco v. Pennzoil Procedural Background: The Most Expensive Legal Mistake in the History of the World Thomas Petzinger, Jr., Oil and Honor: The Texaco-Pennzoil Wars

Part II Mutual Assent

Chapter 4 Reaching an Agreement

A. The Objective Theory of Assent

Embry v. Hargadine, McKittrick Dry Goods Co. The Objective Theory of Assent: A Problem Lucy v. Zehmer Relational Background: The Politics and Economics of Lucy v. Zehmer Barak Richman & Dennis Schmelzer, When Money Grew on Trees: Lucy v. Zehmer and Contracting in a Boom Market Restatement (Second) of Contracts

B. What Is an Offer?

1. Preliminary Negotiations

Nebraska Seed Co. v. Harsh Lefkowitz v. Great Minneapolis Surplus Store, Inc. Leonard v. PepsiCo Restatement (Second) of Contracts Sales Contracts: The Uniform Commercial Code

2. Written Memorial Contemplated

Empro Manufacturing Co. v. Ball-Co Manufacturing, Inc. Restatement (Second) of Contracts Arnold Palmer Golf Co. v. Fuqua Industries, Inc. Memorandum of Intent for the Acquisition of 25% of the Stock of Arnold Palmer Golf Company in Exchange for Certain Assets of Fuqua Industries, Inc. Copeland v. Baskin Robbins U.S.A.

3. Revoking an Offer

Dickinson v. Dodds Restatement (Second) of Contracts Legal Background: The Emergence of “Firm Offers” Sales Contracts: The Uniform Commercial Code

C. What Is an Acceptance?

1. Acceptance That Varies Terms—The Mirror Image Rule

Ardente v. Horan Restatement (Second) of Contracts

2. Acceptance by Correspondence—The Mailbox Rule

Restatement (Second) of Contracts

3. Acceptance by Performance or “Unilateral” Contracts?

Carlill v. Carbolic Smoke Ball Co. Relational Background: The Smoke Ball and Nineteenth-Century Patent Medicine A. W. B. Simpson, Quackery and Contract Law: The Case of the Carbolic Smoke Ball Restatement (Second) of Contracts White v. Corlies & Tifft Poetic Background: Llewellyn’s Verse Restatement (Second) of Contracts Petterson v. Pattberg Relational Background: Additional Information About Petterson v. Pattberg Samuel Blinkoff, Note Restatement (Second) of Contracts

4. Acceptance by Silence

Hobbs v. Massasoit Whip Co. Restatement (Second) of Contracts

D. E-Commerce and Mutual Assent

Register.com, Inc. v. Verio, Inc. Nguyen v. Barnes & Noble Inc. Statutory Background: Uniform Computer Information Transactions Act Statutory Background: Uniform Electronic Transactions Act (1999) Empirical Evidence on the Use of Online Contracting Florencia Marotta-Wurgler, Some Realities of Online Contracting

Chapter 5 Discerning the Agreement

A. Interpreting the Meaning of the Terms

1. Ambiguous Terms

Raffles v. Wichelhaus Relational Background: What “to arrive ex Peerless” Really Meant Grant Gilmore, The Death of Contract A. W. B. Simpson, Contracts for Cotton to Arrive: The Case of the Two Ships Peerless Oswald v. Allen Restatement (Second) of Contracts Sales Contracts: The Uniform Commercial Code

2. Vague Terms

Weinberg v. Edelstein Frigaliment Importing Co. v. B.N.S. International Sales Corp.

B. Filling Gaps in the Terms

1. Agreements to Agree

Sun Printing & Publishing Ass’n v. Remington Paper & Power Co. Restatement (Second) of Contracts

2. Illusory Promises

New York Central Iron Works Co. v. United States Radiator Co. Eastern Air Lines, Inc. v. Gulf Oil Corp. Wood v. Lucy, Lady Duff-Gordon Biographical Background: Who Was Lucy, Lady Duff-Gordon? Meredith Etherington-Smith & Jeremy Pilcher, The “It” Girls Stephen Cox, Mysteries of the Titanic Biographical and Relational Background: Who Was Otis Wood and Why Did He Omit a “Best Efforts” Clause? Victor Goldberg, Framing Contract Law: An Economic Perspective Sales Contracts: The Uniform Commercial Code

C. Identifying the Terms of the Agreement

1. Form Contracts or “Contracts of Adhesion”

Carnival Cruise Lines v. Shute Compagno v. Commodore Cruise Line, Ltd. Caspi v. Microsoft Network Restatement (Second) of Contracts

2. Which Terms Were Agreed To?

Step-Saver Data Systems, Inc. v. Wyse Technology Sales Contracts: The Uniform Commercial Code Union Carbide Corp. v. Oscar Mayer Foods Corp.

3. Terms That Follow Later

ProCD v. Zeidenberg Hill v. Gateway 2000 Klocek v. Gateway

Chapter 6 Written Manifestations of Assent

A. Interpreting a Writing—The Parol Evidence Rule

Thompson v. Libbey Masterson v. Sine Restatement (Second) of Contracts Sales Contracts: The Uniform Commercial Code Pacific Gas and Electric Co. v. G. W. Thomas Drayage & Rigging Co. Trident Center v. Connecticut General Life Insurance Co. Comparative Law Background: The Parol Evidence Rule Under the United Nations Convention on Contracts for the International Sale of Goods Daniel D. Barnhizer, CISG as an Alternative System of Default Rules Governing the Sale of Goods

B. Reforming a Writing—Mistakes in Integration

The Travelers Insurance Co. v. Bailey Restatement (Second) of Contracts

C. Requiring a Writing—The Statute of Frauds

Restatement (Second) of Contracts 1. The Statute and Its Exceptions

Boone v. Coe Restatement (Second) of Contracts Riley v. Capital Airlines, Inc. Sales Contracts: The Uniform Commercial Code Restatement (Second) of Contracts

2. Satisfying the Requirement of a Writing

Schwedes v. Romain Restatement (Second) of Contracts Ethical Background: The Role of the Lawyer in Schwedes American Bar Association Model Rules of Professional Conduct (2002)

3. Satisfying the Requirement of a Signature

Cloud Corp. v. Hasbro, Inc. Statutory Background: Writings and the “E-SIGN” Act Statutory Background: Provisions for E-Signatures Uniform Electronic Transactions Act (1999) Uniform Computer Information Transactions Act (2001)

Chapter 7 Multiparty Transactions

A. Transferring Rights or Duties to Third Parties

Legal Background: Introduction to Assignment and Delegation E. Allan Farnsworth, Contracts 1. Assignment of Contractual Rights

Kelly Health Care v. The Prudential Insurance Co. of America Restatement (Second) of Contracts In re Nance Restatement (Second) of Contracts

2. Delegation of Contractual Duties

Sally Beauty Co. v. Nexxus Products Co. Sales Contracts: The Uniform Commercial Code

B. Third-Party Beneficiaries of a Contract

1. The Birth of the Third-Party Beneficiary Rule

Lawrence v. Fox Relational Background Anthony Jon Waters, The Property in the Promise: A Study of the Third Party Beneficiary Rule

2. Intended Beneficiaries

Seaver v. Ransom Restatement (Second) of Contracts

3. Distinguishing Intended from Incidental Beneficiaries

Sisters of St. Joseph of Peace, Health, and Hospital Services v. Russell Restatement (Second) of Contracts

Part III Enforceability

Chapter 8 Principles of Enforceability

A. Six Core Principles of Enforceability

1. Party-Based Principles 2. Standards-Based Principles 3. Process Principles 4. Integrating the Core Principles of Enforceability

B. Applying the Principles of Enforceability to a Case

Michelle Marvin v. Lee Marvin Frances Morone v. Frank Morone Sari Posner v. Victor Posner

Chapter 9 The Doctrine of Consideration

A. The Historical Origins of the Doctrine

Historical Background: The Origins of the Doctrine of Consideration A. W. B. Simpson, The Doctrine of Consideration—Introduction

B. The Bargain Theory of Consideration

Economics Background: Bargains and the Division of Labor Adam Smith, Lectures on Jurisprudence Adam Smith, The Wealth of Nations 1. Distinguishing Bargains from Gratuitous Promises

Johnson v. Otterbein University Hamer v. Sidway Relational Background: Other Dealings Between Willie and His Uncle Hamer v. Sidway (N.Y. Supreme Court) Kirksey v. Kirksey Relational Background: “Dear Sister Antillico” William R. Casto & Val D. Ricks, “Dear Sister Antillico…”: The Story of Kirksey v. Kirksey Dahl v. HEM Pharmaceuticals Corp. Restatement (Second) of Contracts

2. Past Consideration

Moore v. Elmer

3. Moral Consideration

Mills v. Wyman Relational Background: Levi Lives! Geoffrey R. Watson, In the Tribunal of Conscience: Mills v. Wyman Reconsidered Boothe v. Fitzpatrick Webb v. McGowin Webb v. McGowin (Ala. Supreme Court) Relational Background: Was a Promise Made? Richard Danzig & Geoffrey R. Watson, The Capability Problem in Contracts Restatement (Second) of Contracts

C. Contract Modification and the Preexisting Duty Rule

Harris v. Watson Stilk v. Myrick Alaska Packers’ Ass’n v. Domenico Relational Background: Were the Fishing Nets Really Rotten? Debora L. Threedy, A Fish Story: Alaska Packers’ Association v. Domenico Brian Construction and Development Co. v. Brighenti Restatement (Second) of Contracts Sales Contracts: The Uniform Commercial Code United States v. Stump Home Specialties Manufacturing

D. Adequacy of Consideration

Economics Background: Subjectivity and the Inequality of Exchange Ludwig von Mises, Human Action Newman & Snell’s State Bank v. Hunter Restatement (Second) of Contracts Dyer v. National By-Products, Inc.

Chapter 10 The Intention to Be Legally Bound

Comparative Law Background: The English Law of Contract Intention to Create Legal Relations A. Using Formalities to Manifest an Intention to Be Legally Bound

1. The Seal

Aller v. Aller Statutory Background: New Jersey Changes Its Mind Wagner v. Lectrox Corp. Restatement (Second) of Contracts Sales Contracts: The Uniform Commercial Code

2. Nominal Consideration

Schnell v. Nell Statutory Background: Documents Under Seal in Indiana Lon L. Fuller, Basic Contract Law Restatement (Second) of Contracts

3. Recitals

Smith v. Wheeler Jolles v. Wittenberg Restatement (Second) of Contracts

4. Written Expression of Intention to Be Legally Bound

Legislative Background: The Rationale for the Uniform Written Obligations Act Handbook of the National Conference of Commissioners on Uniform State Laws & Proceedings of the Thirty-Fifth Annual Meeting Thomas v. First National Bank of Scranton Kay v. Kay Federal Deposit Insurance Corp. v. Barness First Federal Savings and Loan Ass’n of Pittston v. Reggie

B. Lack of Intention to Be Legally Bound

Ferrera v. A. C. Nielsen Evenson v. Colorado Farm Bureau Mutual Insurance Co. Eiland v. Wolf

Chapter 11 The Doctrine of Promissory Estoppel

Historical Background: Early Alternatives to the Doctrine of Consideration A. W. B. Simpson, The Doctrine of Consideration—Introduction A. The Development of Promissory Estoppel as a Substitute for Consideration

1. Family Promises

Ricketts v. Scothorn Historical Background: The Doctrine of Equitable Estoppel John Norton Pomeroy, Essential Elements Constituting the Estoppel Discussion of the Tentative Draft of Contracts, Restatement No. 2

2. Promises to Convey Land

Greiner v. Greiner Restatement (Second) of Contracts

3. Promises of a Pension

Feinberg v. Pfeiffer Co. Pitts v. McGraw-Edison Co.

4. Construction Bids

James Baird Co. v. Gimbel Bros., Inc. Relational Background: More About the “Mistake” Lon L. Fuller, Basic Contract Law Drennan v. Star Paving Co. Restatement (Second) of Contracts

5. Charitable Subscriptions

Allegheny College v. National Chautauqua County Bank of Jamestown

B. Promissory Estoppel as an Alternative to Breach of Contract

Goodman v. Dicker Hoffman v. Red Owl Stores, Inc. Relational Background: What Was the Promise in Red Owl Stores? William C. Whitford & Stewart Macaulay, Hoffman v. Red Owl Stores: The Rest of the Story Restatement (Second) of Contracts Restatement (Second) of Torts (1977) Doctrinal Background: The Tort of Promissory Misrepresentation Randy E. Barnett & Mary E. Becker, Beyond Reliance: Promissory Estoppel, Contract Formalities, and Misrepresentations Theoretical Background: The Death of Contract? Grant Gilmore, The Death of Contract E. Allan Farnsworth, Developments in Contract Law During the 1980s: The Top Ten Empirical Background: Promissory Estoppel in the Nineties Robert A. Hillman, Questioning the “New Consensus” on Promissory Estoppel: An Empirical and Theoretical Study

C. Establishing the “Elements” of Promissory Estoppel

1. Promise

Blatt v. University of Southern California Spooner v. Reserve Life Insurance Co. Ypsilanti v. General Motors Ypsilanti v. General Motors (Mich. Appeals Court) Relational Background: Settlement of the Case James Bennet, G.M. Settles Suit over Plant Closing

2. Reasonable Reliance

Alden v. Vernon Presley

3. Injustice of Nonenforcement

Cohen v. Cowles Media Co. (Minn. Supreme Court) Cohen v. Cowles Media Co. (U.S. Supreme Court) Cohen v. Cowles Media Co. (Minn. Supreme Court) Empirical Background: The Elements of Promissory Estoppel Robert A. Hillman, Questioning the “New Consensus” on Promissory Estoppel: An Empirical and Theoretical Study Sidney W. DeLong, The New Requirement of Enforcement Reliance in Commercial Promissory Estoppel: Section 90 as Catch-22

D. A Hypothetical Alternative to Restatement §90

Restatement (Third) of Contracts

Part IV Performance and Breach

Chapter 12 Performance

A. The Implied Duty of Good Faith Performance

Goldberg 168-05 Corp. v. Levy Mutual Life Insurance Co. of New York v. Tailored Woman Stop & Shop, Inc. v. Ganem Food Fair Stores, Inc. v. Blumberg The Original Great American Chocolate Chip Cookie Co. v. River Valley Cookies, Ltd. Restatement (Second) of Contracts Sales Contracts: The Uniform Commercial Code

B. Implied and Express Warranties

1. Implied Warranties of Merchantability and Fitness for a Particular Purpose

Vlases v. Montgomery Ward & Company Sales Contracts: The Uniform Commercial Code

2. Express Warranties

Royal Business Machines, Inc. v. Lorraine Corp. Sales Contracts: The Uniform Commercial Code CBS, Inc. v. Ziff-Davis Publishing Co.

3. Express Disclaimers of Warranty

Schneider v. Miller Pelc v. Simmons Sales Contracts: The Uniform Commercial Code Morris v. Mack’s Used Cars

Chapter 13 Conditions

A. The Effect of a Condition

Inman v. Clyde Hall Drilling Co. Understanding the Effects of Conditions: A Problem

B. What Events Are Conditions?

1. Is the Event a Condition, a Promise, or Both?

Howard v. Federal Crop Insurance Corp. Restatement (Second) of Contracts

2. Is the Event a Condition, a Promise, or Neither?

Chirichella v. Erwin

C. Avoiding Conditions

1. Waiver and Estoppel

Clark v. West Restatement (Second) of Contracts Sales Contracts: The Uniform Commercial Code

2. Excuse to Prevent Forfeiture

J.N.A. Realty Corp. v. Cross Bay Chelsea, Inc. Restatement (Second) of Contracts

Chapter 14 Breach

A. Constructive Conditions

Kingston v. Preston Morton v. Lamb Jacob & Youngs v. Kent Jacob & Youngs v. Kent (Motion for Reargument) Relational Background: Why All the Fuss About Reading Pipe? Richard Danzig, The Capability Problem in Contract Law

B. Prospective Nonperformance

1. Anticipatory Repudiation

Albert Hochster v. Edgar De La Tour Harrell v. Sea Colony, Inc. Sales Contracts: The Uniform Commercial Code

2. Adequate Assurances of Performance

Scott v. Crown Sales Contracts: The Uniform Commercial Code

3. Material Breach

B & B Equipment Co. v. Bowen Lane Enterprises, Inc. v. L. B. Foster Co. Did Shawn Kemp Materially Breach? A Problem

4. The Perfect Tender Rule: Cure and Rescission

Ramirez v. Autosport Sales Contracts: The Uniform Commercial Code

C. Cost of Completion vs. Diminution in Value: The Expectation Interest Revisited

Groves v. John Wunder Co. Peevyhouse v. Garland Coal Mining Co. Restatement (Second) of Contracts Relational and Legal Background: Is Peevyhouse a Lesson in Lawyering or Corruption? Judith L. Maute, Peevyhouse v. Garland Coal Co. Revisited: The Ballad of Willie and Lucille

Part V Defenses to Contractual Obligation

Chapter 15 Lack of Contractual Capacity

A. Introduction—Rebutting the Prima Facie Case of Contract

Theoretical Background: Legal Rules as Presumptions Richard A. Epstein, Pleadings and Presumptions

B. Deficiencies in Contractual Capacity

1. Incompetence

Ortelere v. Teachers’ Retirement Board of New York Restatement (Second) of Contracts

2. Infancy

Webster Street Partnership, Ltd. v. Sheridan Halbman v. Lemke Zelnick v. Adams Historical Background: The Extension of Childhood Hillary Rodham, Children’s Rights: A Legal Perspective Brooke Shields v. Gross Restatement (Second) of Contracts

Chapter 16 Assent Improperly Obtained and Assent to Improper Terms

A. Misrepresentation

Halpert v. Rosenthal Restatement (Second) of Contracts Byers v. Federal Land Co. Vokes v. Arthur Murray, Inc. Restatement (Second) of Contracts

B. Duress

Hackley v. Headley Austin Instrument v. Loral Corp. United States v. Progressive Enterprises Restatement (Second) of Contracts

C. Undue Influence

Odorizzi v. Bloomfield School District Relational Background: Donald Odorizzi’s Story Restatement (Second) of Contracts

D. Unconscionability

Williams v. Walker-Thomas Furniture Co. Sales Contracts: The Uniform Commercial Code Restatement (Second) of Contracts In re RealNetworks Discover Bank v. Superior Court Gatton v. T-Mobile USA, Inc.

E. Enforceability of Arbitration Clauses in Form Contracts

AT&T Mobility v. Concepcion Samaniego v. Empire Today, LLC Commercial Background: Contracting Around Government Courts and State-Created Contract Law Lisa Bernstein, Opting Out of the Legal System: Extralegal Contractual Relations in the Diamond Industry

F. Public Policy

A.Z. v. B.Z. Meyer v. Hawkinson Legal Background: Freedom of Contract Printing and Numerical Registering Co. v. Sampson Restatement (Second) of Contracts

Chapter 17 Failure of a Basic Assumption

A. Mistakes of Present Existing Facts

1. Mutual Mistake

Sherwood v. Walker Nester v. Michigan Land & Iron Co. Wood v. Boynton Lenawee County Board of Health v. Messerly Restatement (Second) of Contracts

2. Unilateral Mistake and the Duty to Disclose

Tyra v. Cheney Drennan v. Star Paving Co. Restatement (Second) of Contracts Laidlaw v. Organ Restatement (Second) of Contracts The Baseball Card Case: A Problem

B. Changed Circumstances

1. Impossibility and Impracticability

Paradine v. Jane Historical Background: The “Alien” Prince Rupert Historical Background: One View of How and Why Paradine v. Jane Became a Leading Case Grant Gilmore, The Death of Contract Taylor v. Caldwell Restatement (Second) of Contracts Sales Contracts: The Uniform Commercial Code CNA & American Casualty v. Arlyn Phoenix Transatlantic Financing Corp. v. United States Sales Contracts: The Uniform Commercial Code

2. Frustration of Purposes

Krell v. Henry Historical Background: The Ailing King E. Allan Farnsworth & William F. Young, Contracts Legal Background: Should the Loss “Lie Where It Fell”? Lloyd v. Murphy Restatement (Second) of Contracts

C. Allocation of Risk in Long-Term Contracts

Aluminum Company of America v. Essex Group, Inc. Procedural Background: The Aftermath of the ALCOA Decision Northern Indiana Public Service Co. v. Carbon County Coal Co. Empirical Background: Survey of Corporate Counsel Russell J. Weintraub, A Survey of Contract Practice and Policy

Table of Judges Table of Cases Table of Statutes Index

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