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Damage Measures And Economic Rationality: The Geometry Of Contract Law, Robert L. Birmingham

Articles by Maurer Faculty

The question of damage measures presented by the conscious decision of a promisor to breach a losing contract raises one of the most perplexing conceptual problems in contract law. Recognizing the present inability of the courts rationally to resolve the problem, as illustrated by the opposing decisions in Groves v. John Wunder Company and Peevyhouse v. Garland Coal and Mining Company, the author undertakes to examine the premises of contract law with afresh perspective-economic analysis.

Actions On Commercial Paper: Holder's Procedural Advantages Under Article Three, Stanley V. Kinyon

Michigan Law Review

The discussion will also be concerned primarily with the usual action "on the instrument": an action by the holder to enforce payment by a person who has signed it as maker, acceptor, certifier, drawer, indorser, or guarantor and has thus become "liable on" it. These instruments, of course, may be involved in other types of actions, such as: an action for conversion of the instrument (section 3-419); an action to recover damages for breach of the warranties of a collector or transferor (sections 3-417 and 4-207); an action to compel indorsement (section 3-201); an action to enjoin payment (section 5-114(2)(b)); …

Contracts -- 1962 Tennessee Survey, Paul I. Hartman

Vanderbilt Law Review

I. Revival of a Debt Barred by Statute of Limitations --An Acknowledgement by Debtor that He Owes the Debt as a Revival of the Cause of Action

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II. Rules for Determining Priority of Right Where Successive Assignees Competing for Same Claim --Applicability of those Rules in Contest Between an Assignee and Debtor whose obligation has been assigned

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III. Breach of Contract--Necessity for Tender of Performance by Promisee where Promisor cannot perform -- Rights of Promisee against Third Party inducing Breach of Contract

A General Theory For Measuring Seller's Damages For Total Breach Of Contract, Robert J. Harris

Michigan Law Review

This article is concerned with the legal rules which should govern the process of valuing what plaintiff saved by exercising his power to stop further performance upon notice of defendant's serious breach. Where plaintiff is a "buyer" (whether he buys land, services, personality, or the temporary use of some kind of property), and he was to pay the price in dollars, few difficulties arise in valuing his saved performance. But if he was a "seller" of any of those commodities, valuation is hard. Thus our inquiry is chiefly concerned with cases in which plaintiff is a "seller," not a "buyer."

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 - Statute Of Frauds - Effect On Oral Exclusive Distributorship Agreement For Indefinite Duration, Robert Segar

Michigan Law Review

In 1935 plaintiff brewery made an oral agreement of no definite duration by which defendant and his father, as partners, were given the exclusive right to distribute its beer. Defendant, changing from one partnership to another, complied with various wishes of the plaintiff such as furnishing warehousing, purchasing uniform amounts of beer throughout the year although seasonal demands varied, dissolving the second partnership in 1950, discontinuing distribution of a rival beer in 1954, and hiring a sales promotion man in June 1954; the latter three actions taken on plaintiff's assurance that he would continue defendant's distributorship. In July 1954 plaintiff, …

Restitution - Availabilty As An Alternative Remedy Where Plaintiff Has Fully Performed A Contract To Provide Goods Or Services, Jerome K. Walsh Jr.

Michigan Law Review

It is hornbook law that restitution is sometimes available as an alternative remedy to a party who has suffered a breach of contract after having conferred a benefit on the defaulting party. It is equally clear, however, that in many cases where a benefit has been conferred, the plaintiff may not elect to sue for the value of his performance but is left to his action for damages on the contract. The cases which are concerned with one or the other of the above rules constitute a large portion of the area of the law called Restitution, and no attempt …

Contracts - Damages - Punitive Damages Awarded For Breach Accompanied By Fraudulent Act, Theodore G. Koerner

Michigan Law Review

Defendants contracted to purchase a crop of alfalfa from plaintiff, harvesting and processing to be done by defendants and payment to be ascertained according to the processed weight of the alfalfa. When defendants harvested the entire crop but failed to pay for the major part of it, plaintiff brought action for breach of contract. In addition to the non-payment, plaintiff alleged fraud on defendants' part in falsifying weight records and in otherwise scheming to cheat and defraud him. On defendants' appeal from a judgment including both compensatory and punitive damages, held, affirmed. Although punitive damages are not ordinarily recoverable …

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 …

Corporations - Officers And Directors - Liability For Inducing A Corporation To Breach Its Contracts, William H. Leighner

Michigan Law Review

Plaintiff real estate company brought suit against the directors of a corporation and other third persons for an alleged conspiracy to induce the corporation to breach its contract with plaintiff. The complaint alleged that the corporation had entered into an agreement whereby plaintiff was to procure a purchaser for certain premises owned by the corporation and that plaintiff had found a purchaser; that before a written offer could be obtained, the corporation contracted to sell to another broker who was to be used as a conduit to transfer title to the purchaser found by the plaintiff, and who was to …

Agency - Liability Of Principal For Termination Of Agents Employment, William G. Mateer S.Ed.

Michigan Law Review

In the summer of 1949, appellant entered into an oral contract for an indefinite time with the appellee whereby the former was granted an exclusive wholesale distributorship of appellee's farm and garden equipment. A four-year period followed in which appellant increased the number of dealers in appellee's product from four or five in 1949 to over one hundred in 1953. In the latter part of 1952 appellant contemplated an enlargement of its facilities which would require it to enter upon a fifteen-year lease. Since the lessor desired some assurances as to the duration of appellant's franchise, appellant wrote to appellee …

Admiralty - Jurisdiction - Quasi -Contractual Remedy, Ross Kipka S.Ed.

Michigan Law Review

Petitioners paid money to respondent for prospective passage to Europe on his passenger vessel held out as a common carrier. When respondent failed to make the voyage or return the passage money, petitioners sued in admiralty for breach of contract. The libel was in the nature of indebitatus assumpsit for moneys had and received and wrongfully withheld by respondent. The district court held this an action based upon the breach of a maritime contract and therefore within the admiralty jurisdiction. The court of appeals reversed, on the ground that the action was in the nature of the common law indebitatus …

Rationale Of Valuation Of Foreign Money Obligations, Charles Evan

Michigan Law Review

What then should a creditor of a foreign money obligation collect where there was a delay in payment? When are damages for depreciation of foreign money recoverable? As of what time and in what currency are they to be computed? How is the value of a foreign money obligation to be measured where no damages may be had? The answers to these and other incidental questions require a thorough analysis of certain features peculiar to the law of money.

It is the purpose of this article to clarify these problems, to sum up the primary principles by which they are …

Restitution - Reliance Losses In Contract Within Statute Of Frauds, John E. Riecker S.Ed.

Michigan Law Review

Plaintiff, the owner of a seasonal night club, orally agreed to lease the premises for three years to the defendant. The plaintiff had a written lease prepared but it was not executed. Negotiations by letters and telegrams between the parties proved that the document was not a definite integration of their agreement sufficient to satisfy the statute of frauds governing leases of land for periods longer than one year. During this interval of negotiation, plaintiff at defendant's express request had procured a liquor license for the following year at the night club, hired a watchman, retained counsel to draw the …

Relief For Vendee From Vendor's Strike, Warren D. Langer

Cleveland State Law Review

While all persons affected by strikes do not have an available remedy, there are many situations where rights and actions have not been exercised and innocent persons have suffered although the necessity of doing so has been precluded by our existing laws. In the first remedy, breach of contract, an injured vendee may maintain an action either against a vendor who fails to protect himself by an appropriate strike clause or a vendor who willfully breaches a contract and then attempts to utilize the fact of a strike as a defense. The second remedy, an action against the striking union, …

Contracts-Duty To Mitigate Damages Upon Anticipatory Breach Of Forward Contract Of Sale, William F. Snyder

Michigan Law Review

The theory of our law in regard to damages for breach of contract has been to give the innocent party as nearly as possible what he would have received had the contract been performed. To this end, our courts have worked out a rough formula which has been described by Professor Grismore as follows:

" ... The promisee is, in general, entitled to recover the economic equivalent of the performance promised, at the time and place fixed in the contract, plus any losses incurred or gains prevented through not receiving it, less any savings that have resulted to the promisee …

Quasi-Contracts--Duress--Recovery Of Payments Made Under Economic Pressure, E.C. V. Greenwood

Michigan Law Review

On September 1, 1939, plaintiff company, engaged in the business of refining, purchasing, transporting and selling gasoline and other petroleum products, entered into two written contracts with defendant retailer. One contract provided for purchase by defendant from plaintiff of real property by monthly installments totaling $32,000, and the other stipulated for purchase from plaintiff of all the gasoline and petroleum products handled by defendant for a period of five years from date. Defendant defaulted in the payment of monthly installments on the real estate contract, and plaintiff brought suit to recover the unpaid balance of $15,200 and sought foreclosure of …

Contracts-Law Applying To Government Contracts-Penalty Clauses, Hubert L. Rowlands S.Ed.

Michigan Law Review

Petitioner contracted with the Federal Surplus Commodities Corporation of the United States Department of Agriculture to supply dried eggs under the Lend-Lease Act of 1941. Delivery was to be made on the "first day of a 10-day period within which the F. S. C. C. will accept delivery." The ten-day period started on May 18, 1942, and the eggs were to be inspected and ready for shipment on that date. Two provisions for "liquidated damages" were stated: one for delays in delivery, the other for failure to have the products inspected and ready on the specified dare. Petitioner failed to …

Contracts--The Anticipatory Breach Doctrine In Kentucky, Arnett Mann

Kentucky Law Journal

No abstract provided.

Co-Operative Marketing--Statutes Providing Penalty Against Third Persons Who Induce Breach Of Marketing Contracts, Thomas F. Broden

Journal Articles

Capitalism is most prudent in accepting into its legal system measures of governmental regulation which apply to economic relations generally and contract relations particularly. Efforts of the executive, legislative or judicial branches of either British or American governments to directly control phases of contractual relationships have generally met staunch and rigid opposition. The spirit of the sacredness and inviolability of the contract relation was a logical outgrowth of the capitalistic system in its inception. At that time freedom was a passion, self-sufficiency a goal. From an era thus shrouded and bedecked with individualism, it is little wonder that measures affecting, …

Constitutional Law - Court Of Claims - Separation Of Powers, Benjamin M. Quigg, Jr. S.Ed.

Michigan Law Review

Plaintiff sued the United States Government for breach of its contract for construction of a water supply tunnel, and in 1932 recovered judgment in the court of claims for approximately one-seventh of the amount sued for. Motions for new trial were denied and the Supreme Court refused to grant a writ of certiorari. In 1942 plaintiff secured the passage of a special act of Congress conferring jurisdiction on the court of claims to render judgment on plaintiff's claim in accordance with the mode of calculation set forth therein, waiving any defenses which the government might have in respect thereto, and …

Resulting Trust-Statute Of Frauds-Advance Of Purchase Money In Exchange For Transferee's Promise To Furnish A Life Home For The Payor, Craig E. Davids S. Ed.

Michigan Law Review

Plaintiff, an illiterate sharecropper, advanced money to purchase an eighty acre farm, record title being taken in the name of defendant and wife with whom plaintiff had been living for more than a year pursuant to an agreement that defendant was to furnish plaintiff with a home for life. The arrangement worked satisfactorily for more than thirty years, during which time the premises were improved and a mortgage discharged by plaintiff. Defendant then remarried and the friction which followed was climaxed by defendant ordering plaintiff off the premises. Suit was filed in equity, under an Oklahoma statute to have defendant …

Damages For Breach Of Automobile Liability Insurance Contract - Pennsylvania Threshermen And Farmers' Mutual Casualty Insurance Company V. Messenger

Maryland Law Review

No abstract provided.

Fusion Of Law And Equity--Suit At Law For Purchase Price Of Land, Henry Howe Bramblet

Kentucky Law Journal

No abstract provided.

Constitutional Law - Involuntary Servitude, John W. Potter

Michigan Law Review

Appellant was indicted under a Georgia statute which provided that anyone who contracted to perform services of any kind with the intent not to perform such services was subject, upon conviction, to fine and /or imprisonment. Proof of the contract, procurement of money or any other thing of value, and the failure to perform the service or to return the money advanced without good and sufficient cause were stated to be presumptive evidence of the requisite intent. Appellant claimed that the statute violated the Thirteenth Amendment and the due process clause of the Fourteenth Amendment. The state court held the …

Labor Law - Right Of Employee To Sue On Collective Bargaining Contract Between Employer And Union, David Davidoff

Michigan Law Review

Defendant, a theatre owner, in March, 1939, entered into a collective bargaining contract with a local union by the terms of which he agreed to hire only union operators, to pay them a specified wage, and to give them two weeks' notice of their discharge, or two weeks' salary in lieu thereof, should he decide to go out of business. Plaintiff, a union member, was employed by the defendant from March, 1939, until he was discharged in December, 1939. It appeared that this discharge was occasioned by defendant's sale of his theatre and retirement from the business. Plaintiff sued for …

Injunction To Restrain Breach Of Personal Contract, Mary Louise Barton

Kentucky Law Journal

No abstract provided.

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 …

Trade Regulation: Inducing Breach Of Contract And Refusal To Deal In The Absence Of Conspiracy And Monopoly, Howard E. Trent Jr.

Kentucky Law Journal

No abstract provided.