Contracts.docx - Contracts Contract pg 19 An exchange relationship o A reciprocal agreement in which each party gives or gets from the other party o

Contracts.docx - Contracts Contract pg 19 An exchange...

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Contracts 10/13/2016 ° Contract pg. 19 An exchange relationship o A reciprocal agreement in which each party gives or gets from the other party o Such as exchange of money or promise Created by agreement o Voluntary nature is fundamental Containing at least one promise o At least one of the parties must make a promise to do or not do something in the future Recognized as enforceable law o The parties can employ the power of the state to enforce them ° ° ° Cohen v. Cowles Media Co. 1990 pg. 20 ° Facts Cohen (plaintiff) approached Cowles Media Co. (Cowles) (defendant), a news organization, among others, with information regarding a state gubernatorial candidate. The reporters for the news organizations promised Cohen he would remain anonymous as a confidential source. The editors of the news organizations chose to disclose Cohen’s identity. Cohen brought suit against Cowles and the other organizations for breach of contract and fraudulent misrepresentation. The matter went to trial and the jury found for Cohen. Cowles and the other defendants appealed. The court of appeals dismissed Cohen’s fraudulent misrepresentation claim, but upheld the jury’s decision on his breach of contract claim. All parties appealed to the Minnesota Supreme Court. Judgment for Cohen is reversed. ° Issue Is this agreement enforceable by law? Should the promise of anonymity be legally enforceable o Intent
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° Holding and Reasoning (Simonett, J.) No o “Each party assumes the risk of what might happen protected only by the good faith of the other party” The law does not create a contract the parties intended none o Nor does the law consider binding every exchange of promises Not all promises are contracts A contract consists of o Offer, an acceptance and a consideration We cant use arguments or proof to close the door completely ° ° Damages Specific performance o Used when monetary damages cant put a party where they would have been o o Used a lot of times for real estate Compensatory damages ° ° Kilarjian v. Vastola 2004 pg. 29 ° Facts P entered into a contract with D to purchase house, day before closing D decided they are not willing to close on the property P wanted summary judgment, and specific performance which would be the sale of the house.
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D argues that his wife is suffering from a disease that progressed quickly and will not allow her to move Motion for summary judgment is denied, plaintiff is entitled to reimbursement for costs associated with breach of contract ° Issue When a party breached a contract can specific performance always be enforced ° Holding Not always, in this situation it would be too much of a burden on D, therefore P will be awarded monetary damages In this case making the D move can not be an equitable remedy because of her health, so cannot use specific performance ° Notes Equitable remedy o Something that is fair for both parties ° ° Hawkins v. McGee 1929 pg. 800 ° Rule of Law
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