Contracts Commons^™

Trade Regulation -- 1961 Tennessee Survey (Ii), Leo I. Raskind

Vanderbilt Law Review

This field of law, not previously treated independently in the annual survey, is designated as Trade Regulation or alternatively as Government or Public Control of Business. In the limit, this body of doctrine is an amalgam of tort and contract principles bearing the impress of the equity practice. These distinct principles are now embodied in both state and federal statutes as the foundations of legal control over competitive commercial conduct. Their scope extends, with different emphasis, from public utility rate regulation to a variety of aspects of market structure and conduct in the unregulated sector of the economy. The principal …

Agency -- 1961 Tennessee Survey, Elvin E. Overton

Vanderbilt Law Review

The topic "agency" includes the areas of "master and servant" as well as those of "principal and agent." There were few cases in these areas decided by the Tennessee courts during the period under survey. Generally, basic principles were applied to routine cases.In certain instances the reliance upon a prior fact determination avoided the necessity of an elaborate treatment of the facts. In one or two cases the court reached a result that may not be deemed desirable though supported by much authority. Significant points received less attention than they deserved in certain cases. In one case the basic question …

Contracts -- 1961 Tennessee Survey, Paul J. Hartman

Vanderbilt Law Review

I. Offer and Acceptance--Notification of Acceptance Before Notification of Revocation--Duration of Offer with Fixed Expiration Date

II. Implied and Quasi Contract--Claim for Services Where Family Relationship Involved

III. Parol Evidence Rule--Application of Rule to Third Party Not a Party to the Written Instrument--Pre-existing Duty as Consideration

IV. Exculpatory Contracts--Contracting Against Liability for Consequences of Own Negligent Conduct

V. Agreement in Restraint of Trade-Agreement of Seller of Business Not to Compete--Enforcement of Restraint in Area Greater than Required to Protect Purchaser

Comment: The Enforcement Of Agreements To Arbitrate, Irving Kovarsky

Vanderbilt Law Review

Three 1960 Supreme Court decisions' have limited the ability of litigants to challenge successfully the jurisdiction and award-making powers of labor arbitrators. The limitations imposed by the Court upon the judiciary's power to question the arbitrator, a reversal of traditional procedure, is of great significance and will unquestionably necessitate some readjustment on the part of management. This article attempts to place these recent developments in perspective and to suggest briefly certain practical changes in the attitudes of courts and contract negotiators that may result from them.

Constitutional Law -- 1961 Tennessee Survey, James C. Kirby, Jr.

Vanderbilt Law Review

Although a relatively small number of cases turned upon constitutional questions during the survey period, some important decisions were handed down in this area. In five separate decisions legislation was declared unconstitutional. The impact of the constitutional decisions varies from the right to millions of dollars in school funds in Shelby County and the salary of the clerk of General Sessions Court of Clay County to approval of permanent tenure for all franchised automobile dealers in the state. The scope of governmental power over the administration of estates, condemnation of private property and the pursuit of private businesses brought forth …

Restitution -- 1961 Tennessee Survey, John W. Wade

Vanderbilt Law Review

"A person who has been unjustly enriched at the expense of an-other is required to make restitution to the other." This is the first section of the Restatement of Restitution.' It indicates the principle underlying a field of the law coordinate with tort and contract.About a dozen cases during the survey period may be classified as raising a problem within this general subject. They do not cover the whole range of the field and have here been classified on a pragmatic rather than an analytical basis.

Services are normally rendered under a contract which governs the nature of the services …

Financing Industrial Development In The South, Margie F. Pitts

Vanderbilt Law Review

Proponents of public industrial building financing justify their position by pointing to the need to supplement private investment and to raise the level of per capita income in areas which have chronically suffered from this condition. The view one adopts of such financing is often couched on the high theme of free enterprise versus governmental participation. Yet the problem may also be viewed from the perspective of the South and its immediate needs.In the long run, it might well be that this program will have served to furnish a starting point for the process of development which would lead to …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Recent Cases

Conflict of Laws--Implied Warranties Governed by Law of the State Most Closely Associated with the Contract

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Constitutional Law--Due Process--Absolute Statutory Prohibition of the Use of Contraceptives Not a Violation of Rights Secured by Fourteenth Amendment

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Constitutional Law--Freedoms of Speech and Press--Ordinance Prohibiting Distribution of Handbills Without Identification of Author Violates Fourteenth Amendment

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Contracts--Termination--Employment for Indefinite Duration not Terminable for Refusal of Employee to Commit Perjury

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Evidence--Federal Courts--Evidence Obtained by State Officers Through Unreasonable Search and Seizure Inadmissible in Federal Courts

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Judgments--Limitation of Overruling Decision to Parties Before the Court and to Causes of …

Overlapping Coverages In Liability Contracts; Subrogation, John A. Appleman

Vanderbilt Law Review

Within the last twenty-five years, approximately, a considerable transition has taken place in approaching the coverages of automobile policies. At one time, liability insurers used to require their policy-holders to pledge that they did not carry other insurance of like character. It is difficult to understand why this situation ever arose. It may have been an outgrowth of fire coverages, or health and accident provisions, in which a moral hazard actually might exist where excessive protection is carried. Thereafter, instead of making this a matter of warranty, policies frequently provided that in the event there should be any other valid …

Business Associations -- 1960 Tennessee Survey, Kenneth L. Roberts

Vanderbilt Law Review

Two opinions of the court of appeals during the survey period-one unpublished-discussed the fiduciary duties owing by officers and directors to their corporations. In Harriman Welding Supply Co. v. Lake City Lightweight Aggregate Corp.,' Presiding Judge McAmis of the eastern section found occasion to state the principles applicable when the fairness of contracts between two corporations having interlocking directorates is questioned.

Automobile Policy Exclusions, A. L. Plummer

Vanderbilt Law Review

The exclusions in the automobile liability insurance policies have required much litigation to clarify and interpret the intent of the draftsmen and underwriter who wrote them. An exclusion takes away or modifies certain coverages given in the insuring agreements. The giving and taking-away provisions of insurance policies are necessary in the making of a limited contract. They tend to avoid duplication of coverage, limit the assumed risk or hazard, avoid underwriting the primary liabilities of others that should be covered by other policy forms, and otherwise limit the scope of coverage. Since 1936 there has been a constant effort by …

Contracts -- 1960 Tennessee Survey, Paul J. Hartman

Vanderbilt Law Review

During the period covered by this survey, the Tennessee courts have had occasion to decide some rather basic questions in the law of contracts. These cases are the subject of comment. Other cases involving only questions of burden of proof regarding contracts questions have not be commented on.

Creditors' Rights And Security Transactions -- 1960 Tennessee Survey, Forrest W. Lacey

Vanderbilt Law Review

Two cases involving mechanic's liens were decided during the period under survey. Rowland v. Lowe' presented the question of the validity of a material men's lien against the owner of land subject to a contract of sale which required the purchaser to erect improvements on the land. In order to protect the vendor's lien, which was to be retained in the deed, the contract provided:

"The purchaser obligates himself to pay all sums for labor and materials in the construction of the improvements on said lot, and in no event shall there be any lien on the lot of ground …

Local Government Law -- 1960 Tennessee Survey, A. E. Ryman, Jr.

Vanderbilt Law Review

This survey is directed to the law peculiar to local government. Although nearly every case involves law applicable to parties other than governmental agencies, the focus of attention here is on the aspects peculiar to such agencies. Critique of the law of general application is not within the scope of this article. Although "Elections and Representation" could be treated (as it was last year) under the topic of "Relations of Local Government and Private Persons," it is separated here to emphasize the logical distinction between laws concerned with the creation of governmental agencies on the theory that power is derivative …

Promissory Estoppel, James O. Bass Jr.

Vanderbilt Law Review

The general nature and application of the doctrine of promissory estoppel' has been thoroughly discussed in the past by very able commentators. It is not the purpose of this note to enlarge upon these analyses. However, as a basis for a summary of the present status of the doctrine, perhaps a brief review is in order. No proposition of law is more familiar to the legal profession in general than the rule that consideration consists of any legal detriment incurred by the promisee, which was "bargained for and given in exchange for the promise.' There are numerous situations in which …

Recent Cases, Law Review Staff

Vanderbilt Law Review

Recent Cases:

CONTRACTS--CONFLICT OF INTERESTS--GOVERNMENT EXPERT'S PRINCIPAL EMPLOYMENT INSUFFICIENT TO VOID CONTRACT ON GROUNDS OF PUBLIC POLICY

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CRIMINAL LAW-ATTEMPT-CONVICTION OF ATTEMPT TO RECEIVE PROPERTY NOT IN FACT STOLEN

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DOMESTIC RELATIONS-UNIFORM RECIPROCAL ENFORCEMENT OF SUPPORT ACT--RELIEF FROM-EXTRADITION UPON PETITION OF THE OBLIGOR

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EVIDENCE-ADMISSIONS--GUILTY PLEA TO TRAFFIC LAW VIOLATION INADMISSIBLE IN SUBSEQUENT CIVIL SUIT

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FEDERAL JURISDICTION AND PROCEDURE--DIVERSITY JURISDICTION--ABSTENTION BY FEDERAL COURT FROM THE EXERCISE OF JURISDICTION IN DIVERSITY CASE

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LABOR LAW--LABOR--MANAGEMENT RELATIONS ACT-STATE COURT PRE-EMPTED FROM ENFORCING GRIEVANCE PROCEDURES OF COLLECTIVE BARGAINING AGREEMENT

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PROFESSION OF LAW--BAR ASSOCIATION MAY NOT DISCIPLINE AN ATTORNEY FOR CONDUCT AS …

The Real Estate Broker's Undertaking, William E. Wallace

Vanderbilt Law Review

In earlier articles I have discussed problems dealing with the enunciation and expression of listing agreements, their formal import' and the effect of one important segment of many of the attendant" payment" clauses. The former article concerned itself with the general problem of the relationship existing between a real property owner and his broker, while the latter dealt with the significance of words by which the payment clause of a brokerage agreement was introduced and with the effect of a wrongful default by the landowner. The present article will consider the legal significance of the actual terms employed to designate …

Restitution--1959 Tennessee Survey, William Wicker

Vanderbilt Law Review

A defrauded party to a contract may ask for the alternative right of cancellation of the contract and restitution of the consideration, rather than a right to damages for being led into the fraudulent transaction. This restitutionary remedy is the right of the defrauded party to be restored to the situation which he occupied prior to the fraudulent transaction.

In Bluff City Company v. Davis, seller falsely represented that an automobile was new, and buyer relied on that representation. Within a reasonable time after buyer learned that he had bought a used automobile, he offered to return it. It was …

Contracts -- 1959 Tennessee Survey, Paul J. Hartman

Vanderbilt Law Review

The distinction between an implied contract (implied in fact) and a quasi contract (implied in law) was presented in a somewhat unusual fashion in the federal case of Holbert v. United States decided by the District Court for the Eastern District of Tennessee. Whether or not a federal district court had jurisdiction over plaintiff's case turned on whether the claim was based on implied contract or on quasi contract.

One of the grounds on which the Tucker Act confers jurisdiction on federal district courts to entertain actions against the United States is where the claim is based "upon any express …

Book Reviews, Robert B. Looper, Ralph Slovenko

Vanderbilt Law Review

Cases and Materials on Restitution By John W. Wade Brooklyn: The Foundation Press, Inc., 1958. Pp. xxxi, 903. $11.00.

reviewer: Robert B. Looper

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Equal Justice for the Accused By a Special Committee of The Association of the Bar of the City of New York and The National Legal Aid Association New York: Doubleday & Co., 1959. Pp. 144. $3.50.

reviewer: Ralph Slovenko

Liability Of Funeral Directors For Negligence, Edgar E. Smith

Vanderbilt Law Review

Funeral directing cannot be classed absolutely as a "profession."'On the contrary, the funeral director's principal concern probably is the sale of caskets and burial supplies, thus making him a "merchant"or "trader." However, for purposes of rendering services in connection with the care and burial of the dead as well as in accommodating the family and friends of the deceased, the funeral director is considered a "professional man." It is the latter capacity which is under consideration here. It is inconsequential for legal purposes whether a mortician is referred to as a "funeral director," an "embalmer," or an "undertaker." An embalmer …

Professional Negligence Liability Of Public Accountants, Carl S. Hawkins

Vanderbilt Law Review

At least since 1905, in this country, accountants have been recognized as "a skilled professional class ... subject generally to the same rules of liability for negligence in the practice of their profession as are members of other skilled professions."' The question, then, is not whether the usual concepts of professional negligence apply to accountants, but how. What situations have produced malpractice litigation? What are the specific practices or omissions which have resulted in liability? And what are the limits of liability? Like other professionals, the accountant usually gets into the position where he must exercise his professional skill as …

Contracts -- 1958 Tennessee Survey, Paul J. Hartman

Vanderbilt Law Review

During the period covered by this survey article, there have not been many cases in the field of contracts. In two of the cases the only question before the court was the sufficiency of the evidence, and in both of these cases the Tennessee Court of Appeals found that there was sufficient evidence to sustain the lower court, without going into an analysis of the evidence. Thus, there is no comment that can properly be made concerning those cases. There were two other cases, however, upon which some comment can properly be made.

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Contracts-Third Party Beneficiary-Right of County to …

Jeremy Bentham, The Contract Clause And Justice John Archibald Campbell, John R. Schmidhauser

Vanderbilt Law Review

Conflicts between the desire to meet the felt needs of society and the desire to maintain existing property rights have long perplexed modern governments. The methods adopted for the resolution of such conflicts quite naturally reflect the prevailing social and political ideology in each nation. In the United States in the period of the Philadelphia Convention, the prevailing temper, at least among the influential, was one of insistence upon the preservation of the sanctity of private property. This insistence and the widespread public reverence for law and judicial institutions determined that state interference with or modification of private contracts be …

State Power Over The Federal Contractor: A Problem In Federalism, Arthur S. Miller

Vanderbilt Law Review

In large measure both the federal officials, whose job it is to enter the commercial market to fulfill the government's material needs, and the federal contractor, wherever he may be and of whatever size he may be, tend to look upon attempts by states to tax or regulate with a skeptical eye. The state appears as some alien interloper whose activities result only in hardship and delay to the contractor and consequent annoyance and financial cost to the federal government. By and large, accordingly, a prevailing idea in the federal procurement circles seems to be that of avoiding, whenever possible, …

Business Associations -- 1957 Tennessee Survey, F. Hodge O'Neal

Vanderbilt Law Review

Very little happened in the field of Business Associations during the survey period. The General Assembly enacted one fairly important set of amendments to the Securities Law, and the Tennessee appellate courts handed down two or three decisions which in a large part merely reiterated principles of corporation law already well-established in this state.

Amendments to the Securities Law Broadening Grounds for Refusing or Revoking Registration of Securities: The Securities Law of 1955 among other things set up a procedure for the registration of securities intended for sale and gave the Commissioner of Insurance and Banking authority to investigate the …

Contracts -- 1957 Tennessee Survey, Paul J. Hartman

Vanderbilt Law Review

Breach of contract to publish advertisement--certainty of lost anticipated profits--nominal damages: The rule of "certainty" with respect to awarding damages for a breach of contract is simply a standard requiring a reasonable degree of persuasiveness in the proof of the fact of damage and of the amount of damage.' Through the use of the standard of certainty, the court is enabled to insist that the jury must have factual data--something more than guesswork--to guide themin fixing the award. Loss of commercial profits, claimed as damages for breach of contract, has become the principal field for the application of the standard …

The Nature Of The Arbitration Process, William M. Hepburn, Pierre R. Loiseaux

Vanderbilt Law Review

The process of reaching a decision in labor-management arbitrations involves many uncertain factors. As to the final result in a case, we can perhaps say that it is in accord with the contract of the parties or that it is not; that it is "fair" or not; "practical" or unworkable; or that it accords with "public policy" or violates it. Some or all of the criteria discussed in this article may be satisfied in a particular case, but, as is proper, the parties are most often interested in basic equities, in whether an award can be brought within the ambit …

Act Relating To Arbitration And To Make Uniform The Law With Reference Thereto, Law Review Staff

Vanderbilt Law Review

A written agreement to submit any existing controversy to arbitration or a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract. This act also applies to arbitration agreements between employers and employees or between their respective representatives (unless otherwise provided in the agreement.)

Preparation And Presentation Of An Arbitration Case, Joseph S. Murphy

Vanderbilt Law Review

This article deals primarily with the preparation and presentation of a case in labor arbitration. However, much of what is said here is equally applicable to the preparation and presentation of a commercial case. It is clear that the comments with regard to documents, witnesses, orderly presentation, and the like are basically the same whether one is arguing that a construction contract has been breached and that the fault lies with the contractor who was guilty of delayed construction, or whether one is defending against a charge of vio- lation of an overtime clause dealing with equal distribution. In each …