INTRODUCTION
§1 Contract Defined:A contract is a promise or a set of promises for the breach of which the law gives a remedy, or the performance of which the law in some way recognizes as a duty.
§2 Promise; Promisor; Promisee; Beneficiary (1) 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. (2) The person manifesting the intention is the promisor. (3) The person to whom the manifestation is addressed is the promisee.(4) Where performance will benefit a person other than the promisee, that person is a beneficiary.
§3 Agreement: manifestation of mutual assent on part of 2 or more persons Bargain: agreement to exchange promises or to exchange a promise for a performance or to exchange performance
§ 4. How A Promise May Be Made: A promise may be stated in words either oral or written, or may be inferred wholly or partly from conduct.
· Shaheen v Knight: failed vasectomy/unplanned child
I: does a failed vasectomy constitute breach of K b/w Physician and Patient?
R: If they had contracted for a particular result and result not obtained, patient would have cause of action for breach of k—in absence of a special k in writing, health care provider never warrantor/guaranteer of cure.
H: NO DMG DONE TO P, so none rewarded
§ 178. When A Term Is Unenforceable On Grounds Of Public Policy (1) A promise or other term of an agreement is unenforceable on grounds of public policy if legislation provides that it is unenforceable or the interest in its enforcement is clearly outweighed in the circumstances by a public policy against the enforcement of such terms. (2) In weighing the interest in the enforcement of a term, account is taken of (a) t
don’t usually make parties adhere to k; usually make 1 party pay other party for dmgs
-punitive dmgs NOT usually given in breach disputes
RELIANCE: dmgs that put promisee in position had he never entered contract at all (usually used in non-commercial settings)
-PUTS P BACK IN STATUS QUO ANTE POSITION
-Incorporated when:
a) profits too uncertain to determine but P can show expenses
b) no enforceable contract, but P entitled to something under promissory estoppel
c) failure to perform on land k and jurisdiction doesn’t allow expectation dmgs
reliance = expenditures made in prep 4 performance – expenses saved in breach
Reliance
