Law Commons^™

In (Partial) Defense Of Strict Liability In Contract, Robert E. Scott

Michigan Law Review

Many scholars believe that notions of fault should and do pervade contract doctrine. Notwithstanding the normative and positive arguments in favor of a fault-based analysis of particular contract doctrines, I argue that contract liability is strict liability at its core. This core regime is based on two key prongs: (1) the promisor is liable to the promisee for breach, and that liability is unaffected by the promisor's exercise of due care or failure to take efficient precautions; and (2) the promisor's liability is unaffected by the fact that the promisee, prior to the breach, has failed to take cost-effective precautions …

The Role Of Fault In Contract Law: Unconscionability, Unexpected Circumstances, Interpretation, Mistake, And Nonperformance, Melvin Aron Eisenberg

Michigan Law Review

It is often asserted that contract law is based on strict liability, not fault. This assertion is incorrect. Fault is a basic building block of contract law, and pervades the field. Some areas of contract law, such as unconscionability, are largely fault based. Other areas, such as interpretation, include sectors that are fault based in significant part. Still other areas, such as liability for nonperformance, superficially appear to rest on strict liability, but actually rest in significant part on the fault of breaking a promise without sufficient excuse. Contract law discriminates between two types of fault: the violation of strong …

Fault In Contract Law, Eric A. Posner

Michigan Law Review

A promisor is strictly liable for breaching a contract, according to the standard account. However, a negligence-based system of contract law can be given an economic interpretation, and this Article shows that such a system is in some respects more attractive than the strict-liability system. This may explain why, as a brief discussion of cases shows, negligence ideas continue to play a role in contract decisions.

When Is A Willful Breach "Willful"? The Link Between Definitions And Damages, Richard Craswell

Michigan Law Review

The existing literature on willful breach has not been able to define what should count as "willful." I argue here that any definition we adopt has implications for just how high damages should be raised in those cases where a breach qualifies as willful. As a result, both of these issues-the definition of "willful," and the measure of damages for willful breach-need to be considered simultaneously. Specifically, if a definition of "willful" excludes all breachers who behaved efficiently, then in theory we can raise the penalty on the remaining inefficient breachers to any arbitrarily high level ("throw the book at …

Contacts - Subrogation - Partial Subrogation Of A Cause Of Action For Personal Injuries, Jerome M. Salle

Michigan Law Review

Plaintiff, an incorporated home for the aged, provided all essential medical care to one of its residents under the provisions of a life-care contract between it and the resident. On the basis of a contract clause which purported to subrogate plaintiff to the right of the resident to recover medical expenses caused by the negligence of third parties, plaintiff brought an action to recover certain medical expenses incurred from the party who was allegedly responsible for the injuries and death of the resident. The trial court sustained a demurrer to the complaint for failure to state a cause of action …

Concurrent Causation In Insurance Contracts, William Conant Brewer Jr.

Michigan Law Review

A great deal of work and thought has been devoted to concurrent causation problems in the field of torts. Less attention has been paid to the insurance cases, and no serious effort has been made to formulate the separate rules applicable to them. It is the thesis of this article that concurrent causation problems which arise under an insurance contract must be handled somewhat differently from those which arise in connection with tort litigation, and that the tendency to borrow rules of law from the larger tort field and apply them to the smaller volume of insurance cases can only …

Sales - Implied Warranty - Privity Of Contract As A Prerequisite To Recovery From Manufacturer, John L. Peschel S. Ed.

Michigan Law Review

Plaintiff sustained injuries in the course of his employment when a defective abrasive wheel, while being used in its intended manner, exploded in his face. The abrasive wheel was purchased by plaintiff's employer directly from the manufacturer. Plaintiff sought recovery from the manufacturer on two grounds: negligence in the manufacture of the abrasive wheel and breach of implied warranty for fitness of purpose. The negligence issue was submitted to the jury, which returned a verdict adverse to the plaintiff. The manufacturer's demurrer to the cause of action based upon implied warranty was sustained by the trial court. On appeal from …

Insurance - Recovery - Delay Of Insurance Company In Rejecting Application For Insurance, Harry D. Krause S.Ed.

Michigan Law Review

Plaintiff, designated as beneficiary by deceased life insurance applicant, sued defendant life insurance company in assumpsit. Deceased, a combat pilot in the Korean War, had applied for one of defendant's policies, passed the medical examination, and made several premium payments on the policy. After the applicant was killed in combat defendant refused payment, contending that it had never accepted the risk but that it had responded to the application with a counter offer containing an aviation waiver. Because of ·the applicant's frequent change of address and his early death this proposal had never been communicated to him. On appeal from …

Limitations Of Action - Applicable Statute - Third-Party Injury Provision Agreed To By Contractor Subject To Contract Limitation Only, Walter L. Adams

Michigan Law Review

More than two years following an accident in which they sustained personal injuries when their car fell into defendant's excavation, plaintiffs filed a diversity action in a federal court stating inter alia a cause of action based upon a third-party beneficiary contract entered into by defendant street contractor and the City of Philadelphia for which he was working. The contract provided in essence that defendant alone would be liable for damage sustained by any third party "irrespective of whether or not such injuries ... be due to negligence or the inherent nature of the work." The district court dismissed the …

Master And Servant - Independent Contractor - Inherent Danger Exception, Jerome K. Walsh, Jr. S.Ed.

Michigan Law Review

Defendant was a home-owner whose home was fumigated by an independent contractor. Plaintiff was the administrator of the estate of a water softener service man, who entered the home and was overcome by the cyanide gas used in the operation. It was agreed by the parties that the contractor was negligent in failing to lock all entrances to the home, and in not posting warnings at all entrances. Plaintiffs request to charge the jury that the work was inherently dangerous was refused. The court instructed the jury to determine whether or not the defendant had used due care in selecting …

Admiralty - Right To Jury Trial In Certain Cases On Great Lakes - Maintenance And Cure Not Contract Or Tort Matter, Richard B. Barnett S.Ed..

Michigan Law Review

Libelant brought an action for maintenance and cure on the admiralty side of a federal district court in Illinois. He requested a jury trial, relying on the Act of February 20, 1845, which provides that in certain admiralty and maritime cases arising on the Great Lakes relating to any matter of contract or tort, trial shall be by jury on the demand of either party. The trial court heard the case without a jury and dismissed the libel on the merits. The court of appeals held, on appeal, that maintenance and cure was a matter of ancient and established …

Negligence - Proving Inviter's Breach Of Duty By Circumstantial Evidence, Charles E. Oldfather S.Ed.

Michigan Law Review

Plaintiff brought a negligence action for personal injuries suffered when she slipped on a spot of grease in the driveway of defendant's railroad station. The evidence showed that the spot was at least one foot square and was covered with dust and dirt so that it resembled in color and texture the rest of the pavement. The evidence also indicated that vehicles often drove through and parked in the drive, and that there were no marks on the spot other than a deep skid mark left by plaintiff's heel. The trial court allowed the jury to determine from this evidence …

Torts--Inducing Breach Of Contract--Attorney-Client Contingent Fee Contract, Richard W. Pogue

Michigan Law Review

Plaintiff, a practicing attorney, undertook on a contingent fee basis to represent a husband and wife in separate claims for damages alleged to have been suffered by them through the negligence of the driver of a motor vehicle. The driver was insured under a policy issued by defendant. Defendant had notice of the contract. After plaintiff had started suit on the damage claim and as the case was about to be tried, defendant's adjusters, without knowledge on the plaintiff's part, allegedly induced the clients to discharge the plaintiff (and "thereby break their contingent fee contract with him") and subsequently to …

Contracts--Specific Performance-Defense Of Hardship Caused By Defendant's Improvements After Giving Option To Purchase, Robert E. Anstaett

Michigan Law Review

In a lease of plaintiff's corner lot to defendant corporation in 1941, the latter granted plaintiff a five-year option to purchase adjacent lots owned by defendant for $35,000, which was then a fair price. In 1945 defendant's officers, overlooking the option agreement, authorized construction of a warehouse on the adjacent property. After defendant had expended about $20,000 in the construction, plaintiff exercised her option by giving notice to defendant. Upon defendant's refusal to convey, plaintiff sued for specific performance. The trial court dismissed the complaint. Held, reversed and remanded with instruction to decree specific performance upon condition that plaintiff …

Master-Servant-Subrogation-Right Of The United States To Recover For Injuries To A Soldier Caused By The Negligent Act Of Another, John R. Dykema

Michigan Law Review

On February 7, 1944, an enlisted soldier in the Army of the United States was injured in a traffic accident in Los Angeles, California, through the negligence of an agent of appellant; he was incapacitated for duty for a period of twenty-nine days. The United States paid his hospital expenses, and also his salary during this period, amounting to a total of $192.56. In March, 1944, the soldier, in return for three hundred dollars, executed a release to appellant "from any and all claims and demands" on account of the accident. The United States sued in the Federal District Court …

Contracts-Release-Misrepresentation By Releasor's Attorney- Avoidance By Releasor For Unilateral Mistake As To Contents, Neil Mckay S.Ed.

Michigan Law Review

Under the objective theory of mutual assent, which bases the imposition of contractual obligations on the expressed intent of the parties, rather than on a subjective meeting of their minds, the law has generally granted relief to the signer of a contract who is under a misapprehension as to its contents only where he can show that the mistake was made without negligence on his part. The theory of affording relief in such a case apparently is that the instrument does not really represent the expression of the signer's intent, and the contract is, therefore, void at its inception. In …

Landlord And Tenant - Covenant By Landlord To Repair - Liability Ex Contractu For Personal Injuries Of The Tenant's Wife, Reid J. Hatfield

Michigan Law Review

One of the terms under which certain premises were leased to plaintiff's husband was a covenant by the defendant lessor to keep the premises in repair. Defendant neglected to repair two of the porch steps, although often requested by plaintiff to do so, and because of their defective condition plaintiff fell and was hurt. She brought suit on two counts; in tort for negligence, and on the contract for its breach. Held, an action in tort would not lie, and, although this was a proper case for an action ex contractu, recovery was denied because the consequences were avoidable …

Sales - Implied Warranties Running To Ultimate Consumer - Is Privity Of Contract Necessary?, William K. Jackson

Michigan Law Review

Plaintiff's husband purchased from defendant, a large retailer, minced ham and liverwurst manufactured by another concern. Plaintiff with other members of the family became ill after eating the liverwurst. An appeal was taken from a directed verdict for defendant. Held, when food is sold, there is no implied warranty of wholesomeness running from the retailer to the ultimate consumer; for the remedy is based on contract and limited to parties and privies thereto. Borucki v. MacKenzie Bros. Co., Inc., (Conn. 1938) 3 A. (2d) 224.

Contracts-Fraud-Rescission For Non-Disclosure Of Insolvency, Sheridan Morgan

Michigan Law Review

Modern decisions have provided an important device for the protection of creditors through extension of the duty of disclosure by persons in extreme financial distress. The remedy chiefly used is rescission, which can be secured on the ground of "fraud," with restitution of property transferred in ignorance of the purchaser's distressed condition. The "fraud" need not consist of express misrepresentation of fact, though express misrepresentation often appears as an independent ground leading to the same result. The commercial importance of the remedies thus developed seems to justify consideration both of their practical consequences and of the theories on which relief …

Contracts-Misunderstanding-Misrepresentation Of The Contents Of A Written Offer

Michigan Law Review

Ordinarily, a man who signs a written contract is bound by its terms in the absence of a misrepresentation of the contents of the writing or mutual mistake, although he may be under a misapprehension in regard to what the writing contains. This is true though the signer cannot read because of illiteracy or blindness. The law, proceeding on an objective theory of mutual assent, holds that it is his duty to read, or, if unable to do so, to get someone else to read for him. But, while unilateral misunderstanding not known to or caused by the other party …

Quasi-Contracts -- Sufficiency Of Technical Benefit

Michigan Law Review

A brokerage house, the R. Co., having purchased stock on margin for the plaintiff, requested a payment of $1100 in order to protect themselves in carrying the account. Doubting the financial stability of R. Co. the plaintiff decided to transfer the account to another firm, the defendant, and accordingly delivered to R. Co. a personal check naming the defendant as payee, at the same time orally directing R. Co. to transfer the stock and check to the defendant and from them receive payment in full. R. Co., however, falsely represented that the check was really theirs and that the plaintiff …

Contracts - Mutual Assent - Misrepresentation Of Contents Of Written Offer

Michigan Law Review

The defendant orally agreed to buy a year's supply of gasoline of the plaintiff, it being understood that the agreement was to be put in writing. Plaintiff's agent presented two documents to the defendant, telling him that they embodied the oral agreement, and the defendant signed without reading them. One of the documents was in form a lease of defendant's filling station to plaintiff at a nominal rent. Plaintiff brought suit, based on the lease, for possession of the premises. Held, the lease is invalid. The defendant's negligence in signing without reading is immaterial. Phillips Petroleum Company v. Roth …

A Comparative Study Of The Statutory Survival Of Tort Claims For And Against Executors And Administrators, Alvin E. Evans

Michigan Law Review

The problem of the survival of actions after death of one of the parties is unfortunately not merely a mater of history. Like the poor, it is always with us. We can no longer profitably wave aside the problems likely to be presented by a comparative study of American legislation on survival by stating that our legislation covers the same general field as do the English statutes of 4 Edward III and 3 and 4 William IV and others of less importance. There is a need for an outline of these American statutes and for a rationalization of the principles …

Contracts-Rescission For Substantial Breach-Lien For Improvements Given Vendee

Michigan Law Review

For statement of facts see preceding note in this issue, Younger v. Caroselli, 251 Mich. 533, 232 N.W. 378.

According to the majority view in the United States, a builder, whose substantial breach of contract (the instant case can hardly be considered one of substantial performance) is merely negligent and in good faith, can recover the value of his labor and materials less the damage caused the promisee.

Fraud-By Third Party-Mistake As To Nature Of Transaction-Rescission As Remedy

Michigan Law Review

The plaintiff was injured as a result of the alleged negligence of the defendant company. His attorney induced him to sign a general release, representing that it was only a receipt for seven hundred and fifty dollars paid on account by the defendant company. The plaintiff was illiterate and relied upon the fraudulent representations of his attorney. In an action to set aside the release, held, on a motion for judgment on the pleadings, that the complaint stated a cause of action, and that the plaintiff was not negligent in relying upon the representations of his attorney. Affirmed. Pimpinello …

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.

Recent Important Decisions, Michigan Law Review

Michigan Law Review

No abstract provided.

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Assignments- Assignment of an Expectancy - Joseph and James were two of six children. A contract witnessed "that Joseph Snyder has sold to James Snyder one undivided sixth of the real estate owned by the mother, Susan Snyder; to secure said interest to James after her death, the mother unites in the conveyance of said interest The said Joseph warrants and defends the interest from all claims." The contract was signed by Joseph and by the mother. Held, Joseph had no estate which he could convey, and the contract, though made with the consent of the mother, was unenforceable either …

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Admiralty - Workmen's Compensation - Is a Hydroplane a Vessel? - Claimant was employed in the care and management of a hydroplane which was moored in navigable waters. The hydroplane began to drag anchor and drift toward the beach, where it was in danger of being wrecked. Claimant waded into the water and was struck by the propeller. Held, claimant is not entitled to compensation under the Workmen's Compensation Law, since a hydroplane while on navigable waters is a vessel, and therefore the jurisdiction of the admiralty excludes that of the State Industrial Commission. Reinhardt v. Newport Flying Service Corp. …

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Carriers of Passengers - Duty to Stop at Station to Permit Passenger to Alight-Contributory Negligence of Passenger Plaintiff's intestate was riding in the front end of a crowded vestibule car in the coach next to the tender of the eengine. When the train stopped at his station he tried to leave by the front end, but found the door from the vestibule closed. As he did not know how to open it, or was unwilling to be carried by his station, he stepped from his platform to the bumper of the tender and tried to follow it to the side …