Week 7 and Week 9

Week 7 and Week 9 - Week 7 Uncertainty of Performance...

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Week 7 Uncertainty of Performance Requirement Contracts: party agrees to supply all or up to a stated amount that buyer needs at a predetermined price Output Contracts: party agrees to buy all or up to a stated amount that the SELLER can produce The needs (price and Q) must be based on established needs or experience from past production. If these two conditions are fulfilled the promise of performance will not be illusory. II. Accord and Satisfaction A. But there is an exception where parties can compromise the amount of the original payment is there is an ACCORD AND SATISFACTION B. Accord: if an offer by a debtor to pay an immediate amount to settle an outstanding debt C. Satisfaction: is acceptance by the creditor of immediate payment of less that the full amount D. Only possible where the debt is UNLIQUIDATED (amount owed is disputed) Accord by liquidated debt is not satisfaction. Even if debton pays, no additional consideration has been given to bind the creditor to any promise not to collect the outstanding amount. a. Giving up the right to contest the amount constitutes consideration and would be satisfaction b. Associated Builders v. Coggins III. Waiver or Release of Claims a. Release or waiver will limit the recovery to terms of release b. Is an agreement to accept a sum of money in return for giving up any potential lawsuits against the payer? i. Release waiver is binding if negotiated in good faith. Many states have statutes that make the waiver binding even if no consideration is given once it is recorded in writing signed by the person. ii. See UCC 1-107 IV. Capacity Minority a. A person under age of 18 can enter into any contract that adult can as long as it doesn’t violate any other statutes b. Minor can disarm the contract if he manifests the intention not to be bound by the contract. c. See IN re the Score Board pg 245 i. Kobe could not break b/c he reaped benefits/ check past age of 18 d. Disaffirm a minor must: i. Disaffirm while still a minor or within a reasonable time of becoming an adult ii. Return all the contract goods still their possession e. Minor is only responsible for malicious or intentional damage, but may have to pay restitution
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f. Dodson v Shrader pg 227 i.
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This note was uploaded on 02/04/2008 for the course AEM 3200 taught by Professor Grossman,d. during the Spring '07 term at Cornell.

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Week 7 and Week 9 - Week 7 Uncertainty of Performance...

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