Running outline Contracts Fall Semester 1L
Restatements of Contracts that need to known
§352 uncertainty as a limitation on damages
i. Damages are not recoverable for loss beyond an amount that the evidence permits to be established with reasonable certainty
§355 Punitive Damages
i. Punitive damages are not recoverable for a breach of contract unless the conduct resulting in breach is also a tort
§356 Liquidated damages and Penalties
i. Damages may be liquidated in reasonable amounts but not unreasonably large quantities
ii. A term in a bond that deems a larger amount than is lost in a non-occurrence is unenforceable
§71 Requirement of an Exchange; types of exchange
i. To constitute consideration, a performance or a return promise must be bargained for.
ii. He promise and return promise are considered Bargained for if they are sought by opposing parties in exchange
iii. The performance may consist of
1. an act or another promise
2. a forbearance
3. the creation, modification or destruction of a legal relation
§79 Adequacy of Consideration
i. If the requirement of consideration is met there is no additional requirement of
1. a gain, advantage or benefit or detriment
2. equivalents in the values exchanged
3. mutuality in obligation
§81 Consideration as a motive or inducing cause
i. The fact that what is bargained for does not, itself induce the making of the promise does not exclude it as consideration
ii. The fact that the promise does not induce the return promise does not exclude it from being held as consideration
iii. (an example of this is the painting in the white house, the painter painted it expecting a multitude of returns and regardless as to whether these induced the painting it is still consideration)
§74 settlement of Claims
i. Naval felt that their contract was violated when Charter manufactured and delivered paper-back copies of their book “before October”.
b. Sullivan v. O’Connor
i. Surgery took 3 operations instead of two, receives pain and suffering for the third operation only, she consented to the pain and suffering in the first two when she agreed to the surgery
ii. She got (reliance: to where she was before the surgery, any expenditures or actions reversed) and restitution (payment or deposit made, promisor must relinquish any incurred benefits). The cost of the bills for all three surgeries, because the contract was breached in resulting with a disfigured nose.
In this case it is important to note that she did NOT GET Expectation (Benefit of bargain, position would have been in if promise had been performed, receive the most compensation possible unless punitive.
