Contracts--JJ White--Fall 2001

Contracts--JJ White--Fall 2001 - I Obligations Arising From...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
I. Obligations Arising From An Agreement With Consideration A. Consideration as Bargained for Exchange 1. Hardesty v. Smith a. Smith got rights to an invention, which later claimed to be useless. Promissory notes assigned to Hardesty who demanded payment. Smith wouldn’t pay cause, invention was useless. b. Court’s ruling: i. fact that no utility is not sufficient for a suit ii. court doesn’t look at who got best of a bargain- only if there was one iii. agreement to pay is valid consideration iv. court can’t amend value afterwards cause then have to and permitted to determine the value of every article and thereby eliminate all special contracts 2. Dougherty v. Salt a. Aunt Dougherty wrote a promissory note to nephew. Executor of Dougherty’s will (Salt) refused to pay. b. Court’s ruling: i. note was voluntary ii. promise was neither offered nor accepted iii. consideration must be regarded as such by BOTH parties c. JJ says: i. problem with gifts is that no cautionary element. D did write a note, but conversation suggested coercion. ii. economists say bargain is better for society than a gift: both sides increase wealth in the former. Gifts are one-sided. Bargains should be facilitated 3. RESTATEMENT (FIRST) OF CONTRACTS §75 (1932) a. consideration for a promise is (a) an act other than a promise, or (b) a forbearance, or (c) the creation, modification or destruction of a legal relation, or (d) a return promise b. consideration may be given to the promisor or to some other person. It may be given by the promisee r by some other person. 4. Restatement (Second) of §71 a. Promisee must suffer a legal detriment, b. the detriment must induce the promise, c. the promise must induce the detriment 5. Fuller, “Consideration and Form” a. consideration has a formal function i. evidentiary- evidence of existence of contract ii. cautionary- a check against inconsiderate action. Can’t go through with action without thinking iii. channeling- person conceives or desired transaction, must go through the process of doing transaction (lawyers, memos, contracts, etc.) b. substantive bases i. contract is an expression of a person’s power to change individual legal relations ii. breach of promise may injure someone who has relied on a promise to change his position 6. Maughs v. Porter a. P responded to D’s notice of auction that gave chance to win a car. P won car and D refused to pay. D claimed wasn’t sufficient consideration b. Court ruled: i. A gift must be executed to be valid ii. P showed enough consideration by showing up to the auction. Condition of the gift was of benefit to Defendant- attracting people to the auction. 7. Hamer v. Sidway
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
a. Uncle promised nephew that if nephew refrained from drinking, tabacoo, swearing,etc. would pay him $5000. Uncle died without paying, after nephew complied with conditions. Executor wouldn’t pay b. Court: i. Something promised, due or suffered by promissee is consideration ii. Suspension or forbearance is valid consideration c. JJ: i. If nephew did smoke, drink, etc. Could uncle sue for breach? In theory yes.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern