Cont ract i ng Law

Contracting Law second edition

Amy Hilsman Kastely Deborah Waire Post Sharon Kang Hom

Carolina Academic Press Durham, North Carolina

Copyright © 1996, 2000 Amy Hilsman Kastely, Deborah Waire Post, and Sharon Kang Hom All Rights Reserved

ISBN 0-89089-831-6 LCCN 00-106263

Carolina Academic Press 700 Kent Street Durham, NC 27701 Telephone (919) 489-7486 Fax (919) 493-5668

Printed in the United States of America

Contents Personal Acknowledgments Acknowledgments Table of Cases Other Texts

xvii xix xxiii xxvii

Chapter One: Introduction to Contract Law

3

A. The Study of Contract Law Note — On the History of Contract Law H.J. Coolidge vs. Pua‘aiki and Kea Note — Anatomy of a Judicial Decision

3 5 12 15

B. Three Principles of Contract Law 1. The Bargain Principle Kirksey v. Kirksey O. Henry (William Sydney Porter), The Gift of the Magi John Elemans, The Gift Economy Note — On Markets and Market Ideologies Note — Neo-Classical Economics and Contract Law Curtis C. Flood v. Bowie K. Kuhn et al. Statement of Ted Williams Note — Baseball, Law, and the Market Bargain and Injury Vanessa Redgrave v. Boston Symphony Orchestra, Inc. Note — On Bargain, Injury, and Expectation Damages 2. Reliance: Trust, Responsibility, Injury Laurie Kuribayashi, Freeway Poem Andrew Ricketts v. Katie Scothorn John Steinbeck, The Grapes of Wrath State Bank of Standish v. Robert N. and Kathleen Curry Note — On Farming in the United States 3. Restitution: Unjust Enrichment and the Duty to Right Other Wrongs Alasdair MacIntyre, A Disquieting Suggestion Executor of the Estate of Enoch F. Sceva v. Fanny True Howard E. Bailey v. Richard E. West Enid Bagnold, National Velvet Lyle Dews v. Halliburton Industries, Inc.

26 27 29 30 34 36 37 41 53 54 57 58 66 68 69 71 74 80 91

v

93 95 97 103 107 110

vi

CONTENTS

Chapter Two: Contract Formation A. Difference and Meaning in Communication 1. The Objective Theory of Interpretation Charles R. Embry v. Hargadine, McKittrick Dry Goods Co. Arthur Miller, The Death of a Salesman United Steelworkers of America, Local 1330 v. United States Steel Sue Doro, Blue Collar Goodbyes In the Matter of the Estate of Virgil A. Steffes Note — On Informal Contracts and the Objective Theory Patricia J. Williams, Alchemical Notes 2. A Subjective Theory of Interpretation: The Doctrine of Misunderstanding Konic International Corp. v. Spokane Computer Services, Inc. Bud Abbott & Lou Costello, Who’s on First? Dr. Werner Oswald v. Jane B. Allen Herlinda Marie Acedo v. State of Arizona, Department of Public Welfare Note — On Revocation of Consent to Adoption S & J Associates v. Jay’s Trucking Co. B. Offer and Acceptance: The Mechanics of Contract Formation Note — On the Polarity of the Offer-Acceptance Model Michael M. Normile and Wawie Kurniawan v. Hazel Elizabeth Miller 1. Was There an Offer? J. W. Southworth v. Joseph C. Oliver and Arlene G. Oliver Ahmad Izadi v. Machado (Gus) Ford, Inc. John Leonard v. Pepsico, Inc. Note — On Interpretation and Context 2. The Assent Invited: Acceptance Panhandle Eastern Pipe Line Co. v. Nowlin Smith, Jr. The Manner of Acceptance Beard Implement Co. v. Krusa Theodore B. Russell v. Texas Co. Multicare Medical Center v. State of Washington The Content of an Acceptance Jom, Inc, d/b/a Chipco International, Ltd. v. Adell Plastics, Inc. Step-Saver Data Systems, Inc. v. Wyse Technology Rich Hill et al. v. Gateway 2000, Inc. Note — On Termination of an Offer and the Power to Accept 3. Revocation of the Offer Prior to Acceptance George Dickinson v. John Dodds State of Washington v. Richard Lee Wheeler Note — On Revocation of Offers Sharon Yvonne Holland v. Earl G. Graves Publishing Co. Note — On offers “becoming irrevocable,” Karl Llewellyn, Our Case-Law of Contract: Offer and Acceptance Drennan v. Star Paving Co.

113 113 114 114 118 120 125 126 137 140 143 143 146 150 151 155 157 160 161 161 165 165 172 176 188 188 189 191 192 196 198 203 204 213 223 227 227 227 231 233 235 239 240 241

CONTENTS

C. Complicating Assent: “Indefinite” Agreements George A. Varney v. Isaac E. Ditmars Community Design Corp. v. Joseph D. Antonell Cobble Hill Nursing Home, Inc. v. Henry and Warren Corp. Mary Gordon, Final Payments Oglebay Norton Co. v. Armco, Inc. Chapter Three: Consideration A. The Consideration Doctrine 1. Origins of the Consideration Doctrine The Early View of Consideration A.W.B. Simpson, A History of the Common Law of Contract The Classical Reformulation The Reinterpretation of Consideration as One among Many An Emerging Use of Consideration as a Tool for Implementing Fairness and a Variety of Other Public Policies 2. Applications of the Consideration Doctrine and Its Corollary Rules Langer v. Superior Steel Corp. “Courts Will Not Inquire into the Adequacy of Consideration” Hamer v. Sidway Carl Jessee v. Dana (Mrs. Larry) Smith Note — Consideration and the Market Myrna Greenfield, Alternative Trade: Giving Coffee a New Flavor “Nominal Consideration is Not Sufficient” In re Greene Clare Dalton, An Essay in the Deconstruction of Contract Doctrine “Illusory Promises” and “Mutuality of Obligation” Agnes Maszewski v. John Piskadlo John Prine, Hello in There Ethel Lawrence et al. v. Ingham County Health Department Family Planning/Pre-Natal Clinic et al. Note — On Sovereign Immunity and Public Health Care Paulette Childress White, Getting The Facts of Life The “Pre-Existing Duty Rule” — A First Look Angela White v. Village of Homewood Profile: Engine Company Number Three “Public Policy” and “Disfavored” Contract Terms Jay H. Romack v. Public Service Company of Indiana, Inc. Note — Romack Reversed and Reinterpreted — Controversy and the Courts Note — On the At-Will Employment Doctrine Howard C. Ellis, Employment-at-Will and Contract Principles Richard E. Freeman v. The Duluth Clinic, Ltd.

vii

244 245 249 250 255 256 263 263 264 264 265 270 272 274

276 277 280 280 283 285 288 292 292 296 297 300 303 304 310 311 317 318 321 323 324 328 330 331 337

viii

CONTENTS

B. Promises Made in Recognition of Past Benefits Mills v. Wyman Joe Webb v. Floyd McGowin Harrington v. Taylor Realty Associates of Sedona v. Valley National Bank of Arizona

340 341 344 347 349

C. A Brief History of Jurisprudence Bailey Kuklin & Jeffrey W. Stempel, Foundations of the Law

353 353

Chapter Four: Promissory Estoppel: Section 90 A. A History of Promissory Estoppel Jay M. Feinman, Promissory Estoppel and Judicial Method Allegheny College v. National Chautauqua County Bank of Jamestown Note — On Charitable Contributions and Contract Law Richard B. Schmitt, Uncharitable Acts: If Donors Fail to Give Laura Williamson, Nonprofit Organizations Face Cuts in Aid B. Contemporary Applications of Promissory Estoppel: Promise and Reasonable Reliance The Promise Joseph Hoffman v. Red Owl Stores, Inc. Gillian K. Hadfield, Problematic Relations Violet E. Neiss v. Kenneth E. Ehlers and Jill A. Ehlers Dayton Malleable Clears $5 Million Capital Outlay Abbington v. Dayton Malleable, Inc. Barbara Kingsolver, Why I am a Danger to the Public Reliance: Action or Forbearance on the Part of the Promisee or a Third Person Jo Laverne Alden v. Elvis Presley Elvis Presley and Vera Matson, Love Me Tender General Aviation, Inc. v. The Cessna Aircraft Co.

371 371 372 376 382 382 386 387 388 388 395 405 413 414 424

427 427 431 432

C. Extending Reliance Farash v. Sykes Datatronics, Inc. Note — A Brief Introduction to Statutes of Frauds Guy Kinoshita v. Canadian Pacific Airlines

437 437 443 447

D. Review of Bases of Liability in Contract and Restitution William Edwin Van Brunt III v. Robert Rauschenberg

453 454

Chapter Five: Defenses: Explicit Political, Economic, and Moral Controls on Contracting A. Illegality and Violation of Public Policy Margaret Atwood, The Handmaid’s Tale In the Matter Of Baby “M” 217 N.J. Super. 313, 525 A.2d 1128 (1987) In the Matter Of Baby “M” 109 N.J. 396, 537 A.2d 1227 (1988) Richard A. Posner, Sex and Reason

461

462 463 465 482 495

CONTENTS

A.C. v. C.B. Donald L. DeMuth v. Daniel C. Miller James B. Stewart, Gentleman’s Agreement

ix

500 505 516

B. Lack of Capacity Children Note — On Children’s Capacity to Contract Don Oldenburg, Consummate Consumer; Children’s Business James Halbman, Jr. v. Michael Lemke Toshio Mori, Through Anger and Love Brooke Shields v. Garry Gross Mental Incapacity Shoals Ford, Inc. v. Maxine Clardy Oliver Sacks, Rebecca

519 522 522 523 526 532 535 542 542 548

C. Duress United States for the Use of the Trane Co. v. Lorna D. Bond Theodore Rosegarten, All God’s Dangers: The Life of Nate Shaw Note — On Wife-Beating, Financing Practices, and Third Party Duress Toni E. Sosnoff v. Jason D. Carter and Julia Vance Carter

552 553 560

D. Undue Influence Nancy Ferguson v. John F. Jeanes

567 568

E. Misrepresentation and Failure to Disclose Audrey E. Vokes v. Arthur Murray, Inc. Robert W. Gordon, Unfreezing Legal Reality Note — On the Aftermath of Vokes v. Arthur Murray Flight Concepts Limited Partnership et al. v. Boeing Co. Lawrence S. C. Kang v. W. Dewey Harrington Michael I. Meyerson, The Reunification of Contract Law Note — On the Duty to Disclose Information Marcus Cicero, De Officiis, Book III Warren G. Hill and Gloria R. Hill v. Ora G. Jones and Barbara R. Jones Jeffrey M. Stambovsky v. Helen v. Ackley and Ellis Realty Fei Xiaotong, A World Without Ghosts

571 573 576 579 581 585 589 593 593

F. Unconscionability Ora Lee Williams v. Walker-Thomas Furniture Co. Deborah Waire Post, The Square Deal Furniture Company Muriel Morisey Spence, Teaching Williams v. Walker-Thomas Furniture Co. James Alan McPherson, A Loaf of Bread Tony Brower v. Gateway 2000 Procedural Unconscionability Brooklyn Union Gas Co. v. Rafael Jimeniz In Re Marriage of Gene M. Gudmundson and Geng Hui Gudmundson Note — On the Many Languages Spoken by U.S. Citizens

561 563

595 601 606 609 610 616 617 621 628 633 633 636 638

x

CONTENTS

Substantive Unconscionability Robert W. Ryan v. Norman D. Weiner Nez Percé Tribe of Indians v. The United States Sherman Alexie, Imagining the Reservation Chapter Six: Content of the Contract A. Implied Terms – Unspoken Understandings and Expectations 1. Trade Practices, Community Norms, and Other Regular Routines Nanakuli Paving and Rock Co. v. Shell Oil Co., Inc. Fisher v. Congregation Bnai Yitzhok 2. Best Efforts, Good Faith, and Similar Communal Norms Wood v. Lucy, Lady Duff Gordon Meredith Etherington-Smith and Jeremy Pilcher, The “IT” Girls Atlantic Track & Turnout Co. v. Perini Corp. Larese v. Creamland Dairies, Inc. Peter Dalton v. Educational Testing Service Amy Tan, Mother Tongue Note — On the Existence and Definition of the Duty of Good Faith Paul Reid and Mary J. Reid v. Key Bank of Southern Maine, Inc. Note — On Legal Realism and the Duty of Good Faith 3. Interpretive Presumptions and Implied Terms Mary Rowe v. Montgomery Ward & Co. Louise Harmon, Privacy and the Parking Lot Faces B. Interpreting Express Terms 1. Formal and Contextual Approaches Formal Maxims Edwin Patterson, The Interpretation and Construction of Contracts Contextual Meaning Robert Braucher, Interpretation and Legal Effect in the Second Restatement John Cheever, Artemis, the Honest Well Digger Pacific Gas and Electric Co. v. G. W. Thomas Trident Center v. Connecticut General Life Insurance Co. Frigaliment Importing Co. v. B.N.S. International Sales Corp. Note — On the United Nations Sales Convention 2. The Reasonable Expectation Doctrine and “Blanket Assent”— Interpretation of Standard Form Contracts Regional Bank of Colorado, N.A. v. St. Paul Fire and Marine Insurance Laurie Kindel Fett, The Reasonable Expectations Doctrine Karl Llewellyn, The Form or Boiler-Plate “Agreement”

639 639 649 657 659 660 660 661 671 673 674 675 680 685 687 695 699 701 708 708 708 722 723 723 723 723 725 725 726 729 732 737 742 744 745 749 750

CONTENTS

xi

C. Parol Evidence Rule Betaco, Inc. v. Cessna Aircraft Co. Kelly Merk et al. v. Jewel Food Stores

753 755 767

D. Categorizing Terms: Promises, Conditions, Promissory Conditions, and Insignificant Terms Promise, Condition, Promissory Condition, or Insignificant Term? Internatio-Rotterdam, Inc. v. River Brand Rice Mills, Inc. Conditions of Satisfaction: Objectivity Revisited Incomm, Inc. v. Thermo-Spa, Inc Terry and Robert Muzzy v. Chevrolet Division

775 777 779 782 783 787

Chapter Seven: Mistake of Fact, Changed Circumstances, and Agreed Modifications

795

A. Mistake of Fact Mutual Mistake Beachcomber Coins, Inc. v. Ron Boskett, t/a R & B Coins Major-League Dispute Kid who paid $12 for $1,200 baseball card settles with shop owner Piano tuner finds problem: stashed cash (1993) Unilateral Mistake Jeffery G. McWaters v. Thomas Lee Parker and Creasy Trucking, Inc. Jump-Rope Rhyme First Baptist Church of Moultrie v. Barber Contracting Co. E. Annie Proulx, The Shipping News Note on Mistake in Expression

795 796 796

B. Changed Circumstances Impossibility (or Impracticability) of Performance Specialty Tires of America v. The CIT Group/Equipment Financing, Inc. Portland Section of the Council of Jewish Women v. Sisters of Charity Roy Cazares and Thomas Tosdal v. Phil Saenz Frustration of Purpose Raymond Carver, A Small Good Thing Robert J. Howard v. Terry Nicholson and George G. Nicholson Brenner v. Little Red School House, Ltd. Changed Circumstances in Different Legal Systems

812 813

C. Agreed Modifications and the Pre-Existing Duty Rule Alaska Packers’ Ass’n v. Domenico et al. Hiroshi Wagatsuma & Arthur Rosett, Cultural Attitudes Towards Contract Law Lester L. Quigley, Jr. and Veronna Kay Lovell v. Wilson David Shribman, Iowa’s Story is America’s Farm Equipment Store, Inc. v. White Farm Equipment Co. Jane Smiley, A Thousand Acres

848 849

798 800 800 800 804 805 809 812

813 821 826 832 832 839 844 848

856 857 860 861 865

xii

CONTENTS

Chapter Eight: Breach of Contract A. Constructive Conditions, Substantial Performance, and the Rule of Perfect Tender John M. Shaw v. Mobil Oil Corp. Spivey and Self v. Highview Farms Jacob & Youngs, Inc. v. George Edward Kent Richard Danzig, The Capability Problem in Contract Law O.W. Grun Roofing and Construction Co. v. Mrs. Fred M. Cope Peter Ho Davies, The Ugliest House in the World Other Protections for Parties Who Must Perform First On the Rule of Perfect Tender in the Uniform Commercial Code Ernest Ramirez and Adele Ramirez v. Autosport Note — Breach Provisions in the United Nations Convention on Contracts for the International Sale of Goods B. Anticipatory Breach and Related Doctrines H.B. Taylor v. Elizabeth and Ellwood Johnston Song of the Horse AMF, Incorporated v. McDonald’s Corp. Chapter Nine: Remedies A. Damages for Breach of Contract 1. Expectation Damages and Alternative Measures of Restitution or Reliance Alice Sullivan v. James H. O’Connor Eric P. Nash, What’s A Life Worth? Source Direct, Inc. v. Donald J. Mantell, M.D. American Standard, Inc. et al. v. Harold Schectman et al. Note on UCC Remedies 2. Three Limitations on Damages: Certainty, Foreseeability, and Mitigation Reasonable Certainty Pauline’s Chicken Villa, Inc. v. KFC Corp. Foreseeability Hadley v. Baxendale George Herbert, The Temple Troxler Electronics Laboratories, Inc. v. Solitron Devices, Inc. Mitigation Shirley MacLaine Parker v. Twentieth Century-Fox Film Corp. 3. Non-Pecuniary Loss: An Additional Limitation on Damages? Carla Deitsch et al. v. The Music Co. Denise Chávez, The Wedding Liberty Homes, Inc. v. Darniece B. Epperson and Fred R. Epperson bell hooks, Homeplace: A Site of Resistance

86 7 867 867 871 876 880 885 889 890 892 893 900 901 902 909 909 915 915 915 916 922 924 929 933 935 935 936 938 938 940 940 944 944 953 953 955 956 959

CONTENTS

4. Contract Terms Regarding Remedies Liquidated Damage Clauses Michael E. Kvassay, d/b/a Kvassay Exotic Foods v. Albert Murray, et al. Note — On Liquidated Damage Clauses Limitation of Liability Clauses Jimmie Elsken, Administrator v. Network Multi-Family Security Corp. 5. Punitive Damages Werner, Zaroff, Slotnick, Stern & Askenazy v. Donald R. Lewis Orlando Cabrera et al. v. Jeno Jakabovitz et al. Jon C. Dubin, From Junkyards to Gentrification B. Specific Performance Lawrence F. Clark, Jr. v. Pennsylvania State Police Douglas Laycock, The Death of the Irreparable Injury Rule Madison Square Garden Boxing, Inc. v. Earnie Shavers Beverly Glen Music, Inc. v. Warner Communications, Inc. and Anita Baker Lea S. VanderVelde, The Gendered Origins of the Lumley Doctrine Chapter Ten: Third Party Interests A. Third Party Beneficiaries Thomas Devine v. Roche Biomedical Laboratories William F. Scarpitti, Jr. v. William Weborg Henry Horner Mothers Guild v. Chicago Housing Authority Dr. Erich Platzer et al. v. Sloan-Kettering Institute for Cancer Research Andrea Barrett, The Behavior of Hawkweeds Third Party Beneficiary Doctrine in Promissory Estoppel and Professional Malpractice Claims Alvin Stangland and Bruce Kintschi v. Norman D. Brock Charles Dickens, Bleak House B. Assignment of Rights and Delegation of Duties (and “Assignment of a Contract”) 1. Assignment of Rights Evening News Association v. Peterson Jill Schachner Chanen, Source of Comfort Equico Lessors, Inc. v. A. Moneim Ramadan, M.D. 2. Delegation of Duties, including “Assignment of a Contract” Sally Beauty Co., Inc. v. Nexxus Products Co., Inc. Hunter Tract Improvement Co. v. S. H. Stone Geyen v. Time Oil Co. Regina Austin, “A Nation of Thieves”

xiii

960 960 960 964 964 964 968 969 971 977 987 987 990 992 995 996 1001 1001 1002 1005 1009 1014 1021 1024 1026 1033

1035 1035 1036 1042 1045 1048 1049 1059 1061 1064

xiv

CONTENTS

Appendix: Some Authoritative Texts in Contract Law

1067

A. Uniform Commercial Code Article 1 General Provisions. — Selected Sections Article 2 Sales. — Selected Sections Article 9 Secured Transactions — Selected Sections on Assignment

1067 1067 1070 1092

B. United Nations Convention on Contracts for the International Sale of Goods

1093

C. Restatement (Second) of Contracts (1981) Chapter 1. Meaning of Terms Chapter 2. Formation of Contracts — Parties and Capacity Chapter 3. Formation of Contracts — Mutual Assent Chapter 4. Formation of Contracts— Consideration Chapter 5. The Statute of Frauds Chapter 6. Mistake Chapter 7. Misrepresentation, Duress and Undue Influence Chapter 8. Unenforceability on Grounds of Public Policy Chapter 9. The Scope of Contractual Obligations Chapter 10. Performance and Non-Performance Chapter 11. Impracticability of Performance and Frustration of Purpose Chapter 12. Discharge by Assent or Alteration Chapter 13. Joint and Several Promisors and Promisees Chapter 14. Contract Beneficiaries Chapter 15. Assignment and Delegation Chapter 16. Remedies Index

1141

1095 1095 1096 1097 1103 1120 1120 1121 1124 1127 1132 1133 1134 1134 1134 1135 1136

Personal Acknowledgments My deep thanks and appreciation to my CUNY colleagues for their generous encouragement over the years. Special thanks to: Marylu Bilek, Sue Bryant, David Nadvorney, Shirley Lum, and Cheryl Meyer for reading workbook drafts and giving helpful feedback, and most especially to Janice Weir for her careful review and insightful suggestions on each draft; to all my contracts students who embraced, resisted and critically engaged these interdisciplinary materials and approaches; and to Pat Tynan for years of efficient good-natured secretarial support. I owe gratitude to my family — the Homs at home — for keeping me grounded in the daily noise and chaos, and to my son, James, for his computer expertise and his humor and for teaching me the possibilities of raising a healthy, non-sexist, sensitive male child in these difficult times. Sharon Kang Hom

I thank many classes of first-year law students at St. Mary’s University School of Law and the University of Hawai‘i William S. Richardson School of Law for the honor and joy of studying contract law with them, with special thanks to Francell Mokihana Marquardt, Joyce McCarty, Jill Nunakawa, Mike Simpson, and Shawna Soderstein. Thanks also to the secretarial staffs of St. Mary’s University School of Law, particularly María Sánchez, Cecilia Aguilar, Nancy Meyer, Hortense D. Porter, and Aurelia Vincent, and of the University of Hawai’i School of Law, particularly Jane Tanaka and Frieda Honda, for excellent work and kind encouragement. I am indebted to the able and engaged research assistance of Christine Dahilig, Bonnie Oppermann, Suzanna Meredith, Karen Corby, Judy Saenz, Conry Davidson, Stephanie Hébert, and Laura Winfield. Among many generous colleagues I owe a special thanks to Yvonne Cherena Pacheco, and to Barbara Aldave, Carol Chomsky, Elise García, Maivân Clêch Lâm, Judy Scales-Trent, Judy Weightman, Janice Weir, and participants in the Temporary Unofficial Committee on Contract Teaching of the AALS Section on Women in Legal Education. I thank J. Kastely, Joe Kastely, and Christina Rose Kastely for engaging conversations and play and for understanding why “Amy never sleeps” and “Amy never stops working.” Amy Hilsman Kastely

xv

xvi

ACKNOWLEDGMENTS

I would like to acknowledge the distance between vision and reality and the work of those who helped close the gap between the two: Allan G. Chambers, Tiombe Tallie-Russell, and Suzanne Darrow-Kleinhaus, whose efforts in obtaining permission to reprint photographs and fiction, poetry, and interviews made this book possible, and Kathleen Sullivan, whose skills as an editor and thoroughness as an indexer improved this book in countless ways. I would also like to thank both Touro College, Jacob D. Fuchsberg School of Law, my home institution, and Syracuse Law School (where I visited during the academic year 1994–1995) for their financial support and all my colleagues at both institutions for their encouragement and moral support. Deborah Waire Post

Acknowledgments Margaret Atwood, The Handmaid’s Tale, Copyright © 1985 by O.W. Toad, Ltd. First American Edition 1986. Excerpt reprinted with permission of Houghton Mifflin Co. All rights reserved. “The Behavior of Hawkweeds” from Ship Fever and Other Stories by Andrea Barrett. Copyright © 1996 by Andrea Barrett. Reprinted by permission of W.W. Norton & Co., Inc. Robert Braucher, “Interpretation and Legal Effect in the Second Restatement of Contracts” Copyright © 1981 by Columbia Law Review. Excerpt reprinted with the permission of Columbia Law Review. “A Small Good Thing” from Cathedral by Raymond Carver. Copyright © 1983 by Raymond Carver. Reprinted by permission of Alfred A. Knopf Inc. Jill Schachner Chanen, “Source of Comfort-Viatical Deals Turn Insurance into Cash for Terminally Ill” © 1995 by Jill Schachner Chanen reprinted with the permission of Jill Schachner Chanen. Denise Chavez “The Wedding”, First published in Daughters of the Fifth Sun: A Collection of Latina Fiction and Poetry, published by Riverhead Books, a division of G.P. Putnam’s Sons, New York, Copyright © 1995 by Denise Chavez. Reprinted with the permission of the publisher and the author. “Artemis, The Honest Well Digger” from The World of Apples by John Cheever. Copyright © 1973 by John Cheever. Reprinted by permission of Alfred A. Knopf Inc. Marcus Cicero: De Officiis, Book III, translated by Walter Miller, © Harvard University 1930. Excerpt reprinted by permission of the publishers and the Loeb Classical Library. Richard Danzig, “The Capability Problem in Contract Law” Copyright © 1978 by The Foundation Press. Excerpt reproduced with permission of The Foundation Press. Davies, P. H., The Ugliest House in the World. 1995 by Peter Ho Davies. Excerpt reproduced with permission by publisher. Sue Doro, Blue Collar Goodbyes Copyright © 1993 by Sue Doro Reprinted with the permission of the author. John C. Dubin, From Junkyards to Gentrification: Explicating a Right to Protective Zoning in Low-Income Communities of Color © 1993 by John C. Dubin. Excerpt reproduced with permission by author and Minnesota Law Review. Excerpt from John Elemans, “The Gift Economy” reprinted with the permission of John Elemans, [email protected] Excerpt from “Employment-at-Will and Contract Principles” Copyright © 1992 by Howard Ellis. Reproduced with permission of author and Dickerson Law Review. xvii

xviii

ACKNOWLEDGMENTS

The “IT” Girls: Lucy, Lady Duff Gordon, The Courturiere ‘Lucile’, and Ellinor Glyn, Romantic Novelist, copyright © 1986 by Meredith Etherington-Smith and Jeremy Pilcher, excerpt reprinted by permission of Harcourt Brace & Co.. Jay Feinman, “Promissory Estoppel and Judicial Method” © 1984 by Jay M. Feinman. Excerpt reprinted with permission by author and Harvard Law Review. Laura Kindel “The Reasonable Expectations Doctrine: An Alternative to Bending and Stretching Traditional Tools of Contract Interpretation” © 1992 by Laura Kindel. Excerpt reproduced with permission of the author and William Mitchell Law Review. Mary Gordon, Final Payments Copyright © 1978 by Mary Gordon. Excerpt reprinted by permission of Random House Inc. Robert W. Gordon, “Unfreezing Legal Reality: Critical Approaches to Law”, 15 Fla. St. U. L. Rev. 195 (1987) Copyright © 1987 by Florida State University Law Review. Excerpt reprinted with permission of Florida State University Law Review. Myrna Greenfield, “Alternative Trade: Giving Coffee a New Flavor” from Equal Exchange. © 1994 by Myrna Greenfield. Excerpt reproduced with permission by author and publisher. Gillian K. Hadfield, “Franchising and the Law of Incomplete Contracts”, 42 Stan. L. Rev. 927 (1990) © 1994 by the Board of Trustees of the Leland Stanford Junior University. Excerpt reprinted with the permission of Stanford Law Review and Fred B. Rothman & Co. Louise Harmon, “Privacy and the Parking Lot Faces” from Louise Harmon and Deborah W. Post, Cultivating Intelligence. Copyright © 1996 by Louise Harmon and Deborah W. Post. Excerpt reprinted with permission of the author. bell hooks, “Homeplace: A Site of Resistance” reprinted from bell hooks, Yearning. Excerpt reprinted with the permission of the publisher, South End Press, 116 Saint Botolph Street, Boston, Massachusetts 02115. “Why I Am A Danger To The Public” (Edited) from Homeland and Other Stories by Barbara Kingsolver. Copyright © 1989 by Barbara Kingsolver. Reprinted by permission of HarperCollins Publishers, Inc. Bailey Kulkin and Jeffrey W. Stempel, Foundation of the Law: An Interdisciplinary and Jurisprudential Primer Copyright © 1994 West Publishing Co..Excerpt reproduced with permission of the publisher. Laurie Kuribayashi, “Freeway Poem”, from The Best of Bamboo Ridge, The Hawaii Writers’ Quarterly edited by Erick Chock and Darrell H.Y. Lum, Bamboo Ridge Press reprinted with permission of the author. Douglas Laycock, “The Death of the Irreparable Injury Rule” Copyright © 1990 Harvard Law Review Association Excerpt reproduced with permission of Harvard Law Review. Karl Llewellyn, “On Our Case-Law of Contract: Offer and Acceptance” Excerpt reprinted by permission of The Yale Law Journal Co. and Fred B. Rothman & Co. from The Yale Law Journal, Vol. 48, pages 1-36. Karl Llewellyn, “The Form or Boiler-Plate ‘Agreement’” from The Common Law Tradition, Copyright © 1960 by Karl Llewellyn. Excerpt reproduced with permission of Little Brown & Co. James Alan McPherson, “A Loaf of Bread” 1979 by James Alan McPherson. Excerpt reproduced with permission by author.

ACKNOWLEDGMENTS

xix

Arthur Miller, The Death of a Salesman. Copyright 1949, renewed © 1977 by Arthur Miller. Used by permission of Viking Penguin, a division of Penguin Books USA Inc. Michael Meyerson, “The Reunification of Contract Law: The Objective Theory of Consumer Form Contracts” reprinted from The University of Miami Law Review 47 U. Miami L. Rev. 1263 (1993), which holds copyright on this article. Toshio Mori, Through Anger and Love. Copyright © 1993. Excerpt reproduced by permission of publisher. Eric P. Nash, “What’s A Life Worth?” Copyright © 1994 by The New York Times Co. Reprinted by Permission. Don Oldenburg, “Consummate Consumer: Children’s Business; America’s $90 Billion-Plus Youth Market”. © 1993 by The Washington Post. Reprinted with permission. Edwin Patterson, “The Interpretation and Construction of Contracts”. Copyright © 1964 by Directors of the Columbia Law Review Association, Inc. Reproduced with permission by Columbia Law Review. Richard A. Posner, “Sex and Reason” reprinted by permission of the publishers from Sex and Reason by Richard A. Posner, Harvard University Press,Cambridge, Mass.: Copyright © 1992 by the President and Fellows of Harvard College. Presley, E. and V. Matson, Love Me Tender. 1956 by Elvis Presley and Vera Matson. Excerpt reproduced with permission by publisher. John Prine, Hello In There. 1972 by John Prine. Excerpt reproduced with permission by publisher. E. Annie Proulx, The Shipping News. Copyright © 1993 by Annie E. Proulx. Reprinted with the permission of Scribner, a Division of Simon & Schuster. “Rebecca” reprinted with the permission of Simon & Schuster from The Man Who Mistook His Wife for a Hat by Oliver Sacks. Copyright 1970, 1981, 1983, 1984, 1985 by Oliver Sacks. Richard B. Schmitt, “Uncharitable Acts: If Donors Fail to Give, More NonProfit Groups Take Them to Court” Reprinted by permission of The Wall Street Journal, © 1995 Dow Jones & Co., Inc. All Rights Reserved Worldwide. A. W. B. Simpson, A History of the Common Law of Contract: The Rise of the Action of Assumpsit Copyright © 1975 Oxford University Press reprinted by permission of the publisher. Muriel Morrissey Spence, “Teaching Williams v. Walker-Thomas Furniture Co.” Copyright © 1994 by Muriel Morissey Spence. Excerpt reprinted with permission of the author and Temple Policy and Civil Rights Law Review. Ronald Takaki, Plantation Life and Labor in Hawaii 1835–1920. Copyright © 1983 by Ronald Takaki. Excerpt reproduced with permission by author. Lea S. VanderVelde, “The Gendered Origins of the Lumley Doctrine: Binding Men’s Consciences and Women’s Fidelity.” Copyright © 1992 The Yale Law Journal Co. Excerpt Reprinted with permission of The Yale Law Journal Co. and Fred B. Rothman & Co. from The Yale Law Journal, Vol, 101, page 775. Hiroshi Wagatsuma and Arthur Rosett. “Cultural Attitudes Towards Contract Law: Japan and the United States Compared.” Copyright 1983 by Hiroshi Wagatsuma and Arthur Rosett. Excerpt reproduced with permission by authors. Paulette Childress White, “Getting the Facts of Life” from Memory of Kin, Stories About Family by Black Writers, edited by Mary Helen Washington, Copy-

xx

ACKNOWLEDGMENTS

right © 1989 by Paulette Childress White. Excerpt reproduced with permission by author. Patricia Williams, “Alchemical Notes: Reconstructing Ideals from Deconstructed Rights” Copyright © 1987 by the President and Fellows of Harvard College. Excerpt reproduced with permission by Harvard Civil Rights Civil Liberties Law Review. Laura Williamson, “Nonprofit Organizations Face Cuts in Aid, Drop in Donations — The Challenge is to Raise Money Elsewhere, or Scale Back Services to the Poor” Copyright © 1995 by Laura Williamson. Excerpt reproduced with permission by publisher. Fei Xiaotong, “A World Without Ghosts” from David Arkush and Leo Lee, Land without Ghosts: Chinese Impressions of America from the MidNineteenth Century Copyright© 1989 The Regents of the University of California. Reprinted with permission of the authors and University of California Press.

Table of Cases A.C. v. C.B., 500 AMF, Incorporated v. McDonald’s Corp., 909 Abbington v. Dayton Malleable, Inc., 414 Acedo v. Arizona, 151 Alaska Packers’ Ass’n v. Domenico, 849 Alden v. Elvis Presley, 427 Allegheny College v. National Chautauqua County Bank of Jamestown, 376 American Standard, Inc. v. Schectman, 929 Atlantic Track & Turnout Co. v. Perini Corp., 680 In re Baby M, 465, 482 Bailey v. West, 103 Beachcomber Coins, Inc. v. Ron Boskett, t/a R & B Coins, 796 Beard Implement Co. v. Krusa, 192 Betaco, Inc. v. Cessna Aircraft Co., 755 Beverly Glen Music, Inc. v. Warner Communications, Inc. and Anita Baker, 995 Brenner v. Little Red School House, Ltd., 844 Brooklyn Union Gas Co. v. Rafael Jimeniz, 633 Brower v. Gateway 2000, Inc., 628 Brunt v. Rauschenberg, 454 Cabrera et al. v. Jeno Jakabovitz, 971 Cazares v. Saenz, 826 Clark, Jr. v. Pennsylvania State Police, 987 Cobble Hill Nursing Home, Inc .v. Henry and Warren Corp., 250

Community Design Corp. v. Joseph D. Antonell, 249 Coolidge vs. Puáaiki, 12 Council of Jewish Women v. Sisters of Charity, 821 Dalton v. Educational Testing Service, 687 Deitsch et al. v. Music Company, 953 DeMuth v. Daniel C. Miller, 505 Devine v. Roche Biomedical Laboratories, 1002 Dews v. Halliburton Industries, Inc., 110 Dickinson v. Dodds, 227 Drennan v. Star Paving Co., 241 Elsken v. Network Multi-Family Security Group, 964 Embry v. Hargadine, 114 Equico Lessors, Inc. v. A. Moneim Ramadan, M.D., 1045 Evening News Association v. Peterson, 1036 Farash v. Sykes Datatronics, Inc., 437 Farm Equipment Store, Inc. v. White Farm Equipment Co., 861 Ferguson v. Jeanes, 568 First Baptist Church of Moultrie v. Barber Contracting Co., 805 Fisher v. Congregation Bnai Yitzhok, 671 Flight Concepts Limited Partnership v. Boeing Co., 581 Flood v. Bowie K. Kuhn, 41 Freeman v. Duluth Clinic, Ltd., 337 Frigaliment Importing Co. v. B.N.S. International Sales Corp., 737 General Aviation, Inc. v. Cessna Aircraft Co., 432 xxi

xxii

TABLE OF CASES

Geyen v. Time Oil Co., 1061 In re Greene, 292 In re Gudmundson, 636 Hadley v. Baxendale, 938 Halbman, Jr. v. Michael Lemke, 526 Hamer v. Sidway, 280 Harrington v. Taylor, 347 Henry Horner Mothers Guild v. Chicago Housing Authority, 1009 Hill v. Gateway 2000, Inc., 223 Hill v. Jones, 595 Hoffman v. Red Owl Stores, Inc., 388 Holland v. Graves Publishing Co., 235 Howard v. Nicholson, 839 Hunter v. Diocese of Wilmington, 442 Hunter Tract Improvement Co. v. S. H. Stone, 1059 Incomm, Inc. v. Thermo-Spa, Inc, 783 Internatio-Rotterdam, Inc. v. River Brand Rice Mills, Inc., 779 Izadi v. Machado (Gus) Ford, Inc., 172 Jacob & Youngs, Inc. v. George Edward Kent, 876 Jessee v. Smith, 283 Jom, Inc. d/b/a Chipco International, Ltd. v. Adell Plastics, Inc., 204 Kang v. Harrington, 585 Kinoshita v. Canadian Pacific Airlines, 447 Kirksey v. Kirksey, 29 Konic International Corp. v. Spokane Computer Services, Inc., 143 Kvassay, d/b/a Kvassay Exotic Foods v. Murray, 960 Langer v. Superior Steel Corp., 277 Larese v. Creamland Dairies, Inc., 685 Lawrence v. Ingham County Health Dept. Family Planning/Pre-Natal Clinic, 304 Leonard v. Pepsico, 176 Liberty Homes, Inc. v. Epperson, 956 Madison Square Garden Boxing, Inc. v. Earnie Shavers, 992 Maszewski v. Piskadlo, 300 McWaters v. Parker and Creasy Trucking, Inc., 800 Merk v. Jewel Food Stores, 767 Mills v. Wyman, 341

Multicare Medical Center v. State of Washington, 198 Muzzy v. Chevrolet, 787 Nanakuli Paving and Rock Co. v. Shell Oil Co., Inc., 661 Neiss v. Ehlers, 405 Nez Percé Tribe of Indians v. United States, 649 Normile v. Miller, 161 O. W. Grun Roofing and Construction Co. v. Cope, 885 Oglebay Norton Co. v. Armco, Inc., 256 Oswald v. Allen, 150 Pacific Gas and Electric Co. v. G. W. Thomas, 729 Panhandle Eastern Pipe Line Co. v. Nowlin Smith, Jr., 189 Parker v. Twentieth Century-Fox Film Corp., 944 Pauline’s Chicken Villa, Inc. v. KFC Corp., 936 Platzer v. Sloan-Kettering Institute for Cancer Research, 1014 Quigley v. Wilson, 857 Ramirez v. Autosport, 893 Realty Associates of Sedona v. Valley National Bank of Arizona, 349 Redgrave v. Boston Symphony Orchestra, Inc., 58 Regional Bank of Colorado v. St. Paul Fire and Marine Insurance Co., 745 Reid v. Key Bank of Southern Maine, Inc., 701 Ricketts v. Scothorn, 71 Romack v. Public Service Company of Indiana, Inc., 324 Rowe v. Montgomery Ward & Co., 708 Russell v. Texas Co., 196 Ryan v. Weiner, 639 S & J Associates v. Jay’s Trucking Co., 157 Sally Beauty Co., Inc. v. Nexxus Products Co., Inc., 1049 Scarpitti v. Weborg, 1005 Sceva v. True, 97 Shaw v. Mobil Oil Corp., 867

TABLE OF CASES

Shields v. Gross, 535 Shoals Ford, Inc. v. Maxine Clardy, 542 Sosnoff v. Carter, 563 Source Direct, Inc. v. Donald J. Mantell, M.D., 924 Southworth v. Oliver, 165 Specialty Tires v. CIT Group/Equipment Financing, Inc., 813 Spivey and Self v. Highway Farms, 871 Stambovsky v. Ackley, 601 Stangland v. Brock, 1026 State of Washington v. Wheeler, 231 State Bank of Standish v. Curry, 80 In re Steffes’ Estate, 126 Step-Saver Data Systems, Inc. v. Wyse Technology, 213 Sullivan v. O’Connor, 916

xxiii

Taylor v. Johnston, 902 Trane Co. v. Bond, 553 Trident Center v. Connecticut General Life Insurance Co., 732 Troxler Electronics Laboratories, Inc. v. Solitron Devices, Inc., 940 United Steelworkers of America, Local 1330 v. United States Steel, 120 Varney v. Ditmars, 245 Vokes v. Arthur Murray, Inc., 573 Williams v. Walker-Thomas Furniture Co., 610, 611 Webb v. McGowin, 344 Werner, Zaroff, Slotnick, Stern & Askenazy v. Lewis, 969 White v. Village of Homewood, 318 Wood v. Lucy, Lady Duff Gordon, 674

Other Texts Abbott, Bud and Lou Costello, Who’s on First? (1937), 146 Alexie, Sherman, Imagining the Reservation, 657 Atwood, Margaret, The Handmaid’s Tale (1985), 462 Austin, Regina, A Nation of Thieves (1994), 1064 Bagnold, Enid, National Velvet (1949), 107 Barrett, Andrea, The Behavior of Hawkweeds (1995), 1021 Braucher, Robert, Interpretation and Legal Effect in the Second Restatement of Contracts (1981), 725 Carver, Raymond, A Small Good Thing (1993), 832 Chanen, Jill Schachner. Source of Comfort (1995), 1042 Chavez, Denise. the Wedding (1995), 955 Cheever, John, Artemis, The Honest Well Digger (1974), 726 Cicero, Marcus, De Officiis, Book III (c45-43 B.C.), 593 Dalton, Clare, An Essay in the Deconstruction of Contract Doctrine (1985), 296 Danzig, Richard, The Capability Problem in Contract Law (1978), 880 Davies, Peter Ho, The Ugliest House in the World (1995), 889 Dickens, Charles, Bleak House (1853), 1033 Doro, Sue, Blue Collar Goodbyes (1993), 125 Dubin, Jon C., From Junkyards to Gentrification (1993), 977 Elemans, John, The Gift Economy (1990), 34 Ellis, Howard, Employment-at-Will and Contract Principles (1992), 331 Etherinton-Smith, Meredith and Jeremy Pilcher, The “IT” Girls (1986), 675 Feinman, Jay M., Promissory Estoppel and Judicial Method (1984), 372 Fett, Laurie Kindel, The Reasonable Expectations Doctrine (1992), 749 Gordon, Mary, Final Payments (1978), 255 Gordon, Robert W., Unfreezing Legal Reality: Critical Approaches to Law (1987), 576 Greenfield, Myrna, Alternative Trade: Giving Coffee a New Flavor (1994), 288 Hadfield, Gillian K., Problematic Relationships (1990), 395 Harmon, Louise, Privacy and the Parking Lot Faces (1996), 722 Herbert, George, The Temple (1633), 940 hooks, bell, Homeplace: A Site of Resistance (1990), 959 Kingsolver, Barbara, Why I am a Danger to the Public (1993), 424 Kuklin, Bailey and Jeffrey W. Stempel, Foundations of the Law (1994), 353 Kuribayashi, Laurie, Freeway Poem (1986), 69 Laycock, Douglas, The Death of the Irreparable Injury Rule (1990), 990 Llewellyn, Karl, Our Case-Law of Contract: Offer and Acceptance (1938), 240 Llewellyn, Karl, The Form or Boiler-Plate “Agreeement” (1960), 750 MacIntyre, Alasdair, A Disquieting Suggestion (1984), 95 xxv

xxvi

OTHER TEXTS

McPherson, James Alan, A Loaf of Bread (1979), 621 Meyerson, Michael I., The Reunification of Contract Law (1993), 589 Miller, Arthur, The Death of a Salesman 1949), 118 Mori, Toshio, Through Anger and Love (1993), 532 Nash, Eric P., What’s A Life Worth? (1994), 922 NBC Today Show, Profile: Engine Company Number Three, 321 O. Henry (William Sydney Porter), The Gift of the Magi (1905), 30 Oldenburg, Don, Consummate Consumer: Children’s Business (1993), 523 Patterson, Edwin, The Interpretation and Construction of Contracts (1964), 723 Posner, Richard A., Sex and Reason (1992), 495 Post, Deborah Waire, The Square Deal Furniture Company, 616 Presley, Elvis and Vera Matson, Love Me Tender (1956), 431 Prine, John, Hello In There (1972), 303 Proulx, Annie E., The Shipping News (1993), 809 Rosegarten, Theodore, All God’s Dangers: The Life of Nate Shaw (1974), 560 Sacks, Oliver, Rebecca (1970), 548 Schmidt, Richard B., Uncharitable Acts (1995), 382 Shribman, David, Iowa’s Story is America’s, 860 Simpson, A.W.B., A History of the Common Law of Contract (1975), 265 Smiley, Jane, A Thousand Acres (1993), 865 Spence, Muriel Morisey, Teaching Williams v. Walker-Thomas Furniture (1994) 617 Steinbeck, John, The Grapes of Wrath (1939), 74 Stewart, James B., Gentlemen’s Agreement (1994), 516 Tan, Amy, Mother Tongue, 695 VanderVelde, Lea S., The Gendered Origins of the Lumely Doctrine (1992), 996 Wagatsuma, Hiroshi and Arthur Rosett, Cultural Attitudes Towards Contract Law (1983), 856 Wall Street Journal, Dayton Malleable Clears $5 Million Capital Outlay, 413 White, Paulette Childress, Getting the Facts of Life (1989), 311 Williams, Patricia, Alchemical Notes (1987), 140 Williamson, Laura, Nonprofit Organizations Face Cuts in Aid, Drop in Donations (1995), 386 Xiaotong, Fei, A World Without Ghosts (1943-44), 606