Contracts Commons^™

A Feminist Economic Perspective On Contract Law: Promissory Estoppel As An Example, Orit Gan

Michigan Journal of Gender & Law

Economic analysis is a highly influential theoretical approach to contract law. At the same time, feminist analysis of contract law offers an important critical approach to the field. However, feminist economics, a prominent alternative approach to mainstream neo-classical economics drawing from both economic theory and feminist theory, has only been applied scarcely and sporadically to contract law. This Article seeks to bridge this gap and to apply the key features of feminist economics to an analysis of the doctrine of promissory estoppel. This Article uses promissory estoppel as an example to demonstrate a feminist economic analysis of contract law.

Patent Privateers And Antitrust Fears, Matthew Sipe

Michigan Telecommunications & Technology Law Review

Patent trolls are categorically demonized as threatening American innovation and industry. But whether they are a threat that antitrust law is equipped to deal with is a complex question that depends on the particular type of patent troll and activities they engage in. This Article looks specifically at privateer patent trolls: entities that acquire their patents from operating entities and assert them against other industry members. In the particular context of privateering, antitrust law is almost certainly not the proper legal solution. Privateering does raise significant issues: circumventing litigation constraints, evading licensing obligations, and raising the cost and frequency of …

Justice, Employment, And The Psychological Contract, Larry A. Dimatteo, Robert C. Bird, Jason A. Colquitt

Larry A DiMatteo

The paper is a multidisciplinary collaboration between contract law, employment law and management scholars and draws from the fields of law, management, and psychology. After reviewing and noting the gaps in the employment and justice literatures, this paper presents the findings of a survey of 763 participants to measure whether certain variables—procedural and substantive fairness, as well as educating employees on the principle of employment at will—impact the propensities of employees to retaliate and litigate at the time of discharge. The survey results are significant and striking. We find statistically significant reductions in retaliation and litigation rates when survey respondents …

Prove Me Wrong Cases And Consideration Theory, Daniel P. O'Gorman

Faculty Scholarship

No abstract provided.

The Restatement (Second) Of Contracts Reasonably Certain Terms Requirement: A Model Of Neoclassical Contract Law And A Model Of Confusion And Inconsistency, Daniel P. O'Gorman

Faculty Scholarship

No abstract provided.

Hunting Promissory Estoppel, David Snyder

David Snyder

This paper considers how promissory estoppel jobs are undertaken in two jurisdictions that ought not to need promissory estoppel. The purpose is to achieve a better understanding of systematic decisions to enforce promises and to discover the doctrinal combinations possible in mixed Civil Law/Common Law jurisdictions. This bilateral comparison allows an examination of the different philosophical and moral bases for according promises legal force, whether founded on contract and will or on delict and injury. The differing functions of formalities are also discussed. More particularly, Scotland does not have promissory estoppel but has a remarkable doctrine allowing the enforceability even …

Fingerprints Of Equitable Estoppel And Promissory Estoppel On The Statute Of Frauds In Contact Law, Stephen J. Leacock

Faculty Scholarship

No abstract provided.

Justice, Employment, And The Psychological Contract, Larry A. Dimatteo, Robert C. Bird, Jason A. Colquitt

UF Law Faculty Publications

The paper is a multidisciplinary collaboration between contract law, employment law and management scholars and draws from the fields of law, management, and psychology. After reviewing and noting the gaps in the employment and justice literatures, this paper presents the findings of a survey of 763 participants to measure whether certain variables—procedural and substantive fairness, as well as educating employees on the principle of employment at will—impact the propensities of employees to retaliate and litigate at the time of discharge.

The survey results are significant and striking. We find statistically significant reductions in retaliation and litigation rates when survey respondents …

Contract Law's Two "P.E.'S": Promissory Estoppel And The Parole Evidence Rule, David G. Epstein

Law Faculty Publications

This article is about "P.E." Not the physical education class that you looked forward to in junior high school, but the two "P.E.'s" you dreaded in your first-year law school contracts class: (1) promissory estoppel and (2) the parol evidence rule.' Each is plenty complicated standing alone. This article considers what happens if the two bump into each other. More specifically, this article asks and answers the question: Should the parol evidence rule apply to promissory estoppel cases?

Hoffman V. Red Owl Stores And The Limits Of The Legal Method, Robert E. Scott

Faculty Scholarship

According to the overwhelming majority view, promissory estoppel is not an appropriate ground for legally enforcing statements made during preliminary negotiations unless there is a “clear and unambiguous promise” on which the counterparty reasonably and foreseeably relies. Bill Whitford and Stewart Macaulay were among the first scholars to note the apparent absence of such a promise in the case of Hoffman v. Red Owl Stores. Several years ago, after studying the trial record, I concluded that the best explanation for the breakdown in negotiations was the fundamental misunderstanding between the parties as to the amount and nature of Hoffmann’s …

Reliance On Oral Promises: Statute Of Frauds And Promissory Estoppel, David G. Epstein

Law Faculty Publications

Reliance on oral promises is the basis not only for law school hypotheticals but also for real world litigation. Consider the following hypothetical based on the 1970 Supreme Court of Hawaii decision in Mcintosh v. Murphy: Tex moved from Lubbock, Texas to Oklahoma to work for Murphy Motors Chevrolet-Oldsmobile, an Okmulgee car dealership. Tex signed a lease for an apartment in Okmulgee. After two months as assistant sales manager, Murphy Motors fired Tex. Tex sued Murphy Motors alleging breach of an alleged oral agreement that she would be employed for two years. It is understandable that a jury might not …

Breach Is For Suckers, Tess Wilkinson-Ryan, David A. Hoffman

All Faculty Scholarship

This paper presents results from three experiments offering evidence that parties see breach of contract as a form of exploitation, making disappointed promisees into “suckers.” In psychology, being a sucker turns on a three-part definition: betrayal, inequity, and intention. We used web-based questionnaires to test the effect of each of the three factors separately. Our results support the hypothesis that when breach of contract cues an exploitation schema, people become angry, offended, and inclined to retaliate even when retaliation is costly. This theory offers a useful advance insofar it explains why victims of breach demand more than similarly situated tort …

Hunting Promissory Estoppel, David V. Snyder

Contributions to Books

This paper considers how promissory estoppel jobs are undertaken in two jurisdictions that ought not to need promissory estoppel. The purpose is to achieve a better understanding of systematic decisions to enforce promises and to discover the doctrinal combinations possible in mixed Civil Law/Common Law jurisdictions. This bilateral comparison allows an examination of the different philosophical and moral bases for according promises legal force, whether founded on contract and will or on delict and injury. The differing functions of formalities are also discussed. More particularly, Scotland does not have promissory estoppel but has a remarkable doctrine allowing the enforceability even …

Promissory Estoppel And The Protection Of Interpersonal Trust , John J. Chung

Cleveland State Law Review

This paper examines the role of trust in promissory estoppel and the extent to which the law should protect trust when a promise is made. Part II of this Article summarizes some of the scholarship discussing the nature and role of trust. In particular, it discusses the role of trust in a market economy, and the related role of trust in Contracts law. Part III examines whether there is a difference between trust and reliance, and whether it matters. Part III further asserts that a separate discussion of trust is beneficial because it has the potential to guide and inform …

Promissory Estoppel: The Life History Of An Ideal Legal Transplant, Joel M. Ngugi

University of Richmond Law Review

This article hopes to accomplish three things. First, it will revisit the historical origins of the doctrine of promissory estoppel in the American law of contracts and the role that Samuel Williston, the Chief Reporter of the Restatement (First) of Contracts ("First Restatement") played in the evolution of the doctrine. The dominant theory is that Williston conceptualized the new promissory estoppel doctrine in a way that retarded and blunted the doctrine shortly after its birth. This theory is adhered to by both critics and proponents of the expansion of promissory estoppel as a ground of promissory obligation. According to both …

The Law And Economics Of Contracts, Benjamin E. Hermalin, Avery W. Katz, Richard Craswell

Faculty Scholarship

This paper, which will appear as a chapter in the forthcoming Handbook of Law and Economics (A.M. Polinsky & S. Shavell, eds.), surveys major issues arising in the economic analysis of contract law. It begins with an introductory discussion of scope and methodology, and then addresses four topic areas that correspond to the major doctrinal divisions of the law of contracts. These areas include freedom of contract (i.e., the scope of private power to create binding obligations), formation of contracts (both the procedural mechanics of exchange, and rules that govern pre-contractual behavior), contract interpretation (what consequences follow when agreements are …

The Best Puffery Article Ever, David A. Hoffman

All Faculty Scholarship

This Article provides the first extensive legal treatment of an important defense in the law of fraud and contracts: puffery. Legal authorities commonly say they make decisions about whether defendants should be able to utter exaggerated, optimistic, lies based on assumptions about buyer behavior, concluding that consumers do not rely on such speech. However, as the Article shows, such analyses are proxies for a deeper analytical question: does the speech encourage or discourage a type of consumption activity that the court deems welfare maximizing? The Article presents a novel constitutional analysis of puffery doctrine that focuses on the meaning of …

Bargaining Power In Contract Theory, Daniel D. Barnhizer

ExpressO

This Article analyzes the role that legal conceptions of bargaining power play in defining the jurisprudence of contract law. Contract law cannot ignore bargaining power asymmetries. Unchecked power imbalances in the bargaining context soon become indistinguishable from naked coercion, and at some level the imbalance undermines both the consent of the weaker party and the legitimacy of the resulting bargain. The debate over the role of the legal doctrine of inequality of bargaining power and subdoctrines such as unconscionability and duress has largely focused on whether and how the state should intervene in individual private agreements to correct perceived power …

Pre-Contractual Obligations In France And The United States, Florence Caterini

LLM Theses and Essays

This thesis compares the pre-contractual obligations in France and the United States. The focus of this study is to analyze how both legal systems deal with these pre-contractual obligations. It focuses on the possibilities given to the parties to protect themselves during the negotiation process. In event of breach of negotiations, the law gives legal remedies to the parties. French and American laws have a different analysis of the problem but they reach similar result: liability under contract law when a contract has been formed or a tentative agreement, or under tort law when no agreement whatsoever has been reached.

Red Owl's Legacy, Gregory M. Duhl

Faculty Scholarship

In the early 1960s, Joseph Hoffman, a high school graduate, baker and father of seven, sought to obtain a Red Owl grocery store franchise in Wisconsin. He entered into negotiations with Red Owl Stores, Inc. after the franchisor assured him that the $18,000 he had to invest in the franchise was sufficient. Over the course of the negotiations, Red Owl encouraged Hoffman to sell his bakery, buy a small grocery store to gain experience in the grocery business, sell his grocery store three months later, and move his family to the desired location for his Red Owl franchise. The negotiations …

The Unfulfilled Promise Of Promissory Estoppel In The Employment Setting, Robert A. Hillman

Cornell Law Faculty Publications

Although the theory of promissory estoppel enforces promises that induce reasonable detrimental reliance, this article reveals the theory's colossal failure in the non-union employment setting. This conclusion is based on an examination of all of the reported decisions in the United States that discussed promissory estoppel over a two-year period in the mid 1990's. During this period, employees won only 4.23 percent of employment promissory estoppel cases decided on the merits. At first blush, this is very surprising because employers, through their communications, seek to create the expectation of a stable, secure work environment and employees, because of their lack …

The Richness Of Contract Theory, Randy E. Barnett

Michigan Law Review

When I teach the doctrine of good faith performance, I assign an exchange between two distinguished contracts scholars, Robert Summers and Steven Burton, that has come to be known as the "Summers-Burton" debate. This debate is interesting not only for the contrasting views of its protagonists concerning the doctrine of good faith, but also because of the generational shift in modes of scholarship it represents. In the 1950s and 1960s, contracts scholars, like so many others, rejected so-called "conceptualist" or "formalist" approaches that attempted to dictate the outcome of cases with general concepts and rules. Contracts scholarship was dominated by …

Questioning The "New Consensus" On Promissory Estoppel: An Empirical And Theoretical Study, Robert A. Hillman

Cornell Law Faculty Publications

Professor Hillman presents evidence that contradicts several assumptions about how courts apply the doctrine of promissory estoppel. Although theorists have claimed the importance, even dominance, of the theory as a ground for enforcing promises, he shows that this theory is remarkably unsuccessful in the courts. Professor Hillman also demonstrates the crucial role of reliance in both successful and unsuccessful promissory estoppel cases, despite the "new consensus" that courts enforce promises without a showing of reliance. Finally, Professor Hillman shows that courts award damages flexibly in successful promissory estoppel cases, although analysts have claimed that courts strongly favor expectancy damages.

Professor …

Comparative Law In Action: Promissory Estoppel, The Civil Law, And The Mixed Jurisdiction, David V. Snyder

Articles by Maurer Faculty

No abstract provided.

When Should An Offer Stick? The Economics Of Promissory Estoppel In Preliminary Negotiations, Avery W. Katz

Faculty Scholarship

The purpose of this Article is to examine the doctrine of promissory estoppel, as it applies in the context of preliminary negotiations, from the viewpoint of the economic theory of rational choice. This is part of a larger project that attempts to understand better the regulatory role of contract formation law generally. From a regulatory vantage point, estoppel and related legal doctrines operate as economic regulations; they shape the bargaining process by influencing the negotiators' incentives to make and to rely on preliminary communications. As with all economic regulations, however, some rules do better than others at promoting efficient exchange, …

The Triumph Of Gilmore's The Death Of Contract, Robert A. Hillman

Cornell Law Faculty Publications

No abstract provided.

The Four Phases Of Promissory Estoppel, Eric Mills Holmes

Seattle University Law Review

Case law accurately delineates the four evolutionary stages of promissory estoppel. As an overview, promissory estoppel has evolved in American case law in four developmental stages: (1) Estoppel Phase, consisting initially of “defensive equitable estoppel” to estop contract defenses based on statutes of limitations and the statute of frauds. In the second part of this first phase, courts have extended “estoppel” based on representations of facts to “promissory” representations and enforced the promissory basis of the representation, thereby creating an affirmative theory of relief. Thus, this first phase of promissory estoppel consists of defensive equitable estoppel and offensive equitable estoppel. …

Contracts: Is Promissory Estoppel Forever Estopped In North Carolina - Home Electric Co. Of Lenoir, Inc. V. Hall & (And) Underdown Heating & (And) Air Conditioning Co., Lu Ann Brown

Campbell Law Review

This Note questions the North Carolina Court of Appeals decision in Home Electric Co. of Lenoir, Inc. v. Hall & Underdown Heating & Air Conditioning Co. This Note discusses sections 90 and 87(2) of the Restatement (Second) of Contracts and their corresponding comments and illustrations; the North Carolina Supreme Court decision in Wachovia Bank and Trust v. Rubish; and the rationale of the Fourth Circuit Court of Appeals in Allen M. Campbell Co. v. Virginia Metal Industries, which allowed the affirmative use of the promissory estoppel doctrine in a construction bidding case. This Note also examines the majority …

Farm Crop Energy V. Old National Bank: A Meaningful Test For Damages Under Promissory Estoppel?, Glen Andrew Anderson

Seattle University Law Review

This Note proposes that an award of lost profits under promissory estoppel should be made only when the circumstances surrounding the making of the promise justify enforcing it as if it were a contract. Operating on the assumption that a promise is found to be a reasonable basis for reliance, this Note will propose some criteria by which a court can determine when a promise justifies a damage award in excess of the costs of reliance. These criteria will then be applied to the Farm Crop facts to demonstrate that remedies can be administered under a standard that is rational …

Promissory Estoppel In Washington, Joseph D. Weinstein

Washington Law Review

This comment clarifies the considerable confusion that befogs the promissory estoppel doctrine in Washington. Part I discusses situations in which a promisee, though unable to establish a traditional contract, can invoke promissory estoppel to obtain relief. Part II examines the elements of promissory estoppel identified in Hill and illustrates their application in various fact patterns.