The Sale of Goods 4
An Introduction to the Study of Contract Law 4
Sources of Contract Law 4
The Basis of Contractual Obligation: Mutual Assent and Consideration 7
Contract Formation Under Article 2 of the Uniform Commercial Code 7
Mutual Assent Under the Uniform Commercial Code 7
Jannusch v. Naffziger 7
E.C. Styberg Engineering Co. v. Eaton Corp 8
Harlow & Jones, Inc. v. Advance Steel Co. 9
The Objective Theory of Contract 9
Offer and Acceptance: Bilateral Contracts 10
Irrevocability by Statute: The Firm Offer 18
Limiting the Power to Revoke 18
Qualified Acceptance: The “Battle of the Forms” 21
Classical Principles
21
Princess Cruises, Inc. v. General Electric Co. 21
Battle of the Forms 22
Brown Machine, Inc. v. Hercules, Inc. 25
Paul Gottlieb & Co. v. Alps South Corp. 25
Filanto v. Chilewich 28
Chateau Des Charmes Wines Ltd. v. Sabate USA Inc. 29
Electronic and “Layered” Contracting 29
Hines v. Overstock.com, Inc 31
“Layered” Contracting
32
DeFontes v. Dell, Inc. 32
Postponed Bargaining: “The Agreement to Agree” 32
Statute of Frauds 33
The Sale of Goods Statute of Frauds: UCC § 2-201 33
Buffaloe v. Hart 35
Interpreting the Agreement 36
The Parol Evidence Rule 36
The UCC Rule and Trade Usages 39
Nanakuli Paving & Rock Co. v. Shell Oil Co. 41
Parol Evidence under the CISG 42
MCC-Marble Ceramic Center v. Ceramica Nuova D’Agostino 42
Advanced Topics in Contract Law 44
Supplementing the Agreement 44
Reasons for Implied Terms 44
Wood v. Lucy, Lady Duff-Gordon 45
Leibel v. Raynor Manufacturing Co. 45
Implied Obligation of Good Faith 47
Seidenberg v. Summit Bank 47
Morin Building Products Co. v. Baystone Construction, Inc. 49
Locke v. Warner Bros., Inc. 50
Donahue v. Federal Express Corp. 50
Warranties 52
Bayliner Marine Corp. v. Crow 53
Caceci v. Di Canio Construction Corp 56
Defenses Relating to Capacity and Fairness 59
Minority and Mental Incapacity 59
Dodson v. Shrader 59
Hauer v. Union State Bank of Wautoma 61
Duress 63
Totem Marine Tug & Barge v. Alyeska Pipeline 63
Undue Influence 65
Odorizzi v. Bloomfield School District 65
Misrepresentation 67
Syester v. Banta 69
Nondisclosure 70
Hill v. Jones 70
Park 100 Investors v. Kartes 71
Unconscionability 73
Williams v. Walker-Thomas Furniture Co. 74
Higgins v. Superior Court 74
In re Checking Account Overdraft Litigation 76
Public Policy 77
Valley Medical Specialists v. Farber 78
R.R. v. M.H. 79
Mistake and Changed Circumstances 82
Mistake 82
Lenawee County Board of Health v. Messerly 83
WilFred’s, Inc. v. Metropolitan Sanitary District 84
Impossibility 86
Impracticability 86
Frustration of Purpose 87
Karl Wendt Farm Equipment Co. v. International Harvester 87
Mel Frank Tool & Supply, Inc. v. Di-Chem Co. 88
Modification 90
Alaska Packers’ Assn v. Domenico 91
Kelsey-Hayes Co. v. Galtaco Redlaw Castings Corp. 93
Problem 8-3 93
Third Parties 95
Third Party Beneficiaries 95
Vogen v. Hayes Appraisal Assoc., Inc. 96
Zigas v. Superior Court 97
Assignment and Delegation 99
Herzog v. Irace 100
Sally Beauty Co. v. Nexxus Products Co. 102
Breach, Repudiation, and Conditions 104
Express Conditions 106
Oppenheimer & Co. v. Oppenheim, Appel Dixon & Co. 107
J.N.A. Realty v. Cross Bay Chelsea 107
Problem 10-1 109
Substantial Performance and Material Breach 111
Jacob & Youngs, Inc. v. Kent 112
Sackett v. Spindler 113
Perfect Tender Rule under the UCC 113
Anticipatory Repudiation 116
Truman L. Flatt & Sons v. Schupf 116
Assurances 117
Hornell Brewing Co. v. Spry 117
Problem 10-2 118