Contracts Outline
I. Introduction – The Importance of Promise
A. The four general requirements of a contract
1. Agreement – offer, counter offer, acceptance
2. Consideration – money, something of value that is bargained for
3. Capacity – minors and highly intoxicated individuals lack the capacity to make a contract
a. Must be a voluntary exchange
4. Legality – it must be legal
B. Bailey v. West (RI, 1969)
1. The Δ bought a horse, which was delivered to his trainer. The trainer discovered that the horse was lame, so the Δ told him to reship the horse to the seller. The seller refused to accept delivery, so the van driver called the trainer. The driver ended up taking the horse to the Π’s farm. The Π sent bills to the Δ, which the Δ sent back saying he wasn’t the owner of the horse. The Π is suing for the expenses he incurred caring for the horse.
2. The Π had two theories for recovery:
a. There was a contract implied in fact – based on the actions of the parties
i Haircut Example, no specific language needed.
b. There was a quasi-contract. The elements of quasi contract:
i 1) Benefit to the Δ, 2) Appreciation of benefit by Δ, and 3) acceptance of benefit under circumstances where it would be equitable to be paid.
ii The parties would have made a contract, but couldn’t
1. Ex: Geis has a heart attack/I pay for his doctor.
2. Ex: person accidently paints your house and you see him doing it, but do not stop him.
3. The court determines that it was more of a gift, not a contract. The Π knew about the ownership controversy and didn’t reasonably expect payment from the Δ. He was acting as a mere volunteer who kept the horse at his own risk, knowing that he might not be paid for the expenses of keeping the horse.
C. Theories of Promissory Liability
1. Bolin Farms v. American Cotton Shippers Assoc. (LA, 1974)
a. The Πs, a group of cotton farmers, entered a contract a few months before harvest time to sell all their cotton to the Δ. Between the time they ma
conferred a benefit, so it’s only fair that you would get some payment.
II. The Bases of Contractual Liability
A. The Consideration Requirement
1. Consideration is something of value the parties are negotiating back and forth for; detriment to the promisor or benefit to the promisee. Either is enough to constitute consideration, you don’t need both.
2. Kirksey v. Kirksey (AL, 1845)
The Π’s husband died, leaving her with several children. The Δ, the brother of the Π’s husband, sent her a letter, inviting her to sell her land and live with him, on his land. He offered to let her have a place to raise her family. A month or two after getting the letter, she left her land and moved her family to the Δ’s residence. After a couple of years there, he forced them to leave. She filed suit against him.
