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Book:
Acing Contracts
Guest, University of Iowa
©2010 West Academic Publishing
Appendix. Summary–Checklists
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APPENDIX:
In this Appendix, you will find two checklists: one for the common law and one for the sale of goods. Each is an analytical outline of leading questions to guide you through analysis of
a problem. The framework of questions moves from one issue to the next as though you were answering a hypothetical that raised every possible issue covered in the course, from
formation through remedies for breach.
As you know, it is beyond the scope of this book to discuss all the rules under UCC Article 2. Consequently, the sales checklist covers only the basic topics likely to be found on a
general contracts exam but not one dealing specifically with the Uniform Commercial Code. Please do not rely on the checklist for this purpose since it does not cover all the possible
topics in the level of detail required for such a course.
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1. Was there an offer? In determining whether a party made an offer capable of acceptance as opposed to preliminary negotiations or mere inquiries, ask the following:
a. Did the proper party accept the offer? Was it the party with the “power of acceptance”?
ii. Did the offeree still have the power of acceptance or was it terminated in one of the following ways?
• By death or insanity?
• By intervening illegality?
• By rejection/counter-offer?
• By lapse of time?
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iv. Was the offeree required to give notice of acceptance to the offeror?
• Was it by mail?
• Was it in the manner invited by the offer so as to be effective upon dispatch (mailbox rule)?
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3. Was there an option contract or an irrevocable offer? Was there a promise to keep an offer open for a stated period of time? Ask the following:
c. Does the jurisdiction follow the Restatement rule? (writing signed by the offeror, recites consideration, and proposes a fair exchange within a reasonable time?)
d. Was there an offer for a unilateral contract? Has the offeree partially performed the requested performance? Ask the following:
i. Common law rule? If so, the offer may be revoked at any time before completion of the requested act.
ii. Restatement (Second)? Did the offeree begin performance of the requested act so as to make the offer irrevocable? Did the offeree begin the actual performance or was it mere
preparations to perform?
iii. Reliance that is not part performance? Did the offeror make an offer which she should reasonably expect to induce reliance on the part of the offeree before acceptance and which
did induce such reliance?
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1. Was there a “bargained for” exchange? If the promise was not sought by the promisor and given by the promisee in exchange for that promise, then what type of promise was
it?
a. Gratuitous promise?
b. Past consideration?
c. Illusory promise?
i. Requirements–Output Contract?
d. Conditional Promise?
i. On an event?
2. Was there reliance? Are the elements for promissory estoppel as set forth in Restatement Second § 90 satisfied?
a. Promise?
b. Foreseeability of reliance?
3. Was there a modification? Is there consideration to support a promise modifying a duty under a contract not fully performed by either party?
a. Pre-existing duty?
b. Modern trend? Does the jurisdiction depart from the pre-existing duty rule and enforce a modification absent consideration if the following requirements are met:
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iii. Unanticipated circumstances? Was the basis of modification unanticipated by the parties?
1. Misunderstanding? Did the parties express assent to the same words or terms, but attach materially different meanings to what they said?
2. Statute of frauds? Was it the type of contract which needed to be in writing to be enforceable?
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g. Exceptions:
a. Infancy?
b. Mental Incapacity?
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4. Mistake? Did one or both of the parties hold an erroneous assumption about the facts that existed at the time of contracting?
a. Unilateral mistake?
b. Mutual mistake?
b. Was it an opinion?
6. Duress or undue influence? Did one party improperly/wrongfully pressure the other party into giving assent? Did one party take advantage of the relationship with the other to
induce assent?
a. Substantive unconscionability?
b. Procedural unconscionability?
8. Illegality and public policy concerns? Was either the consideration or the object of the contract is illegal? Did the agreement offend public policy?
1. Parol Evidence? Was there a dispute regarding the scope and content of the deal? Is one party introducing evidence of a prior or contemporaneous agreement to show that the
terms of the parties’ written agreement are other than as shown in the writing?
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a. Integrated or unintegrated?
i. Merger clause?
2. Interpretation? Do the parties disagree as to the meaning of the terms in their agreement? Is evidence admissible to interpret the parties’ agreement?
i. Condition Precedent?
v. Constructive Conditions?
c. Was it a promise?
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4. Changed circumstances? Have drastically changed circumstances made the obligor’s performance impracticable or has the purpose in performing the contract been
frustrated?
b. Frustration of purpose?
E. Was there a breach of contract? Did a promisor, without justification or excuse, fail to tender a promised performance when performance was due or tendered a defective
performance?
1. Anticipatory repudiation? Has one party to the contract expressed the intent, either through words or conduct, that
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a promised performance will not be forthcoming? Has this occurred before the actual time set for performance?
b. Adequate assurances? If there was doubt, did the aggrieved party seek adequate assurances of performance?
c. Retraction? Was there a retraction of the repudiation? Did it occur before the aggrieved party relied on the repudiation?
2. Material breach or substantial performance? Did the party commit a material breach or substantially perform?
iii. What is the extent to which the injured party will be deprived of the actual benefit of the contract?
v. To what extent has the injured party obtained or will obtain the substantial benefit for which she bargained?
vi. To what extent can the injured party be compensated for the defective performance by damages?
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F. Remedies?
1. Expectation interest? Can the injured party recover the benefit of her bargain?
• Diminution in value?
i. Foreseeability?
ii. Mitigation/avoidability?
iii. Certainty?
2. Reliance interest? Was the injured party’s loss caused by reliance on the contract? Can she be put in as good a position as she would have been in had the contract not been
made?
3. Restitution interest? Has the plaintiff conferred a benefit on the other party so that it would be unjustly enriched at the plaintiff’s expense?
4. Agreed remedies? Have the parties defined their own remedies in the event of breach?
a. Liquidated damages?
b. Restriction on remedies?
5. Equitable remedies? Will the award of money damages not compensate the injured party for her loss?
a. Specific performance?
b. Injunctive relief?
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i. Intended?
• Creditor?
• Donee?
b. Vested? Has the intended beneficiary’s rights vested so that the beneficiary has acquired the right of enforcement?
i. Assent? Has the beneficiary manifested assent to the promise at the request of the promisor or promisee?
ii. Suit? Has the beneficiary brought suit to enforce the promise?
iii. Reliance? Has the beneficiary materially changed position in justifiable reliance?
2. Assignment and delegation? Has one of the contract parties purported to transfer her rights or delegate her duties under the contract to someone else who was not an original
party to the contract?
a. Assignment of rights?
• Personal services?
• Public policy?
b. Delegation of duties?
3. Novation? Has there been a substitution of the original parties to the contract?
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3. Are one or both of the parties to the agreement “merchants” so as to fall within the Code’s merchant provisions where applicable?
2. Was there a dispute over contract terms because of additional or different terms in the acceptance, i.e., “battle of the forms”?
3. Was there a “firm offer”? Did a merchant offer to buy or sell goods in a signed writing which promised to hold the offer open?
1. Are “gap fillers” necessary to fill in terms left open by the parties, except for the quantity term which is required?
D. Statute of frauds? Was it a contract for the sale of goods over $500 such that a writing would be required? Does an exception apply?
2. Admissions?
4. Merchant memo? Has a merchant sent a written confirmation to another merchant who has reason to know its contents and it is in a form sufficient to bind the sender? If
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so, then the writing requirement is satisfied unless written notice of objection is given within 10 days of receipt.
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E. Parol evidence? Is one party introducing evidence of a prior or contemporaneous agreement to show that the terms of the parties’ written agreement are other than as shown in
the writing?
1. Integrated?
F. Modification?
1. Good faith? Although consideration is not necessary, was the modification made in good faith?
2. Statute of frauds? If the contract as modified falls within the statute, have its requirements been met?
H. Warranty?
1. Warranty of title?
2. Warranties of quality? Has the seller made a representation of quality to which the goods must conform at the time of delivery?
a. Implied warranties?
ii. Warranty of fitness for a particular purpose? Did the seller have reason to know of the buyer’s particular purpose, know or have reason to know that the buyer was relying on the
seller’s skill to
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furnish appropriate goods, and the buyer relied on the seller to select the goods?
b. Express warranty?
b. Implied warranties?
i. Warranty of merchantability? Did the language mention the word “merchantability” and, if in writing, was it conspicuous?
ii. Warranty of fitness for a particular purpose? Has the seller excluded or modified the warranty in a writing which is conspicuous?
ii. Essential purpose? Was the seller unwilling or unable to repair the defective goods within a reasonable time or willing and able to repair but repairs cannot be done?
I. Performance?
2. Right to cure? Has the non-conforming tender or delivery occurred before the contract’s specified delivery date so that the seller has time to cure?
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J. Breach?
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e. Was it the breach of an installment contract? Can the buyer reject an installment?
ii. Did the non-conformity substantially impair the value of that installment, and
K. Remedies?
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c. Hypothetical resale?
e. Incidental damages?1
b. Right to cover?
c. Hypothetical repurchase?
e. Incidental damages?
f. Consequential damages?
i. Causation?
iii. Preventable?
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1. The 2003 revision to the Code provides specifically for seller’s right to recover consequential damages in similar terms to the rights of the buyer.
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