OUTLINE AND CASES
PART A: THE AUTONOMY AND SECURITY PRINCIPLES:
SECTION 1: PROMISE
A) Promise
Sect. 2(1): Definition of a Promise
A promise is a manifestation of intention to act or refrain from acting in a specified way, so made as to justify a promisee in understanding that a commitment has been made
Sect. 1: Definition of a Contract
A contract is a promise for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty
Sect. 344: Purpose of Remedies
Judicial remedies serve to protect one or more of the following interests of a promisee:
a) Expectation Interest: His interest in having the benefit of his bargain by being put in as good a position as he would have been in had the contract been performed. Most popular form; also called “the benefit of the bargain” and includes lost profits
b) Reliance Interest: His interest in being reimbursed for loss caused by reliance on the contract by being put in as good a position as he would have been had the contract not been made. Examples include incurred expenses or foregone opportunities
c) Restitution Interest: His interest in having restored to him any benefit that he has conferred on the other party. Examples include fees paid for non-performed work
Hawkins v. McGee
Facts:
Dr. McGee performed an unsuccessful surgery on Hawkins’ hand after soliciting his business and guaranteeing to make the hand 100% perfect.
Court Decision:
Hawkins Wins. The fact that McGee not only repeatedly solicited Hawkins for permission to do the surgery, but he also stated the word “guarantee”, which could all lead
endant kept his contract.
SECTION 2: PROMISSORY AGREEMENTS
A) The Intention of the Parties
Sect. 201: Whose Promise Prevails?
1) Where the parties have attached the same meaning to a promise or agreement or a term thereof, it is interpreted in accordance with that meaning.
2) Where the parties have attached different meanings to a promise or agreement or a term thereof, it is interpreted in accordance with the meaning attached by one of them if at the time the agreement was made:
a) That party did not know of any different meaning attached by the other, and the other knew the meaning attached by the first party; or
b) That party had no reason to know of any different meaning attached by the other, and the other had reason to know the meaning attached by the first party.
3) Except as stated in this Section, neither party is bound by the meaning attached by the other, even though the result may be a failure of mutual assent.
Subjective Intent versus Objective Intent
Subjective Intent is how the actions of a person would be perceived by a reasonable third party. The Subjective Intent is what the person actually intends, regardless of what his actions show. For the purpose of mutual assent and determining the terms of a promise, the objective intent only is what is considered.
Mutual Assent
Mutual Assent occurs when tow parties objectively agree to the terms of a contract, and to initiate its inception.
