Bouton Case (promissory estoppel) - ANS Bouton was tenure prof @Washburn; claimed promissory estoppel against Byers(Father) for breaching promise for inheriting ranch to her.
She left tenure to help manage cattle ranch, byers denied 1MM,
Bouton filed Prom estop for damages equal to ...
Bouton Case (promissory estoppel) - ANS Bouton was tenure prof @Washburn; claimed
promissory estoppel against Byers(Father) for breaching promise for inheriting ranch to her.
She left tenure to help manage cattle ranch, byers denied 1MM,
Bouton filed Prom estop for damages equal to forgone tenure salaries bc she was under
promise that she would inherit land upt to 1MM
Court orig denied Boutoun, later remanded
The courts will enforce a promise that the promisor should reasonably expect to induce
detrimental reliance by the promisee if the promisee takes such action and justice requires
enforcement.
Anderson Case (exculpatory clause) - ANS Anderson joined McOskar's fitness club,
curves. She signed waive of liablity for negligent injuries: exculpatory clause. She then worked
out, felt injured, checked with trainer, then got surgery. Sued club. Club won, affirmed in appeals
Two prong test: 1) disparity in bargain power of parties
2) types of services offered
Clear from release that Anderson agreed to exonerate Curves from liability for negligence, being
part of the express agreement that Anderson accepted and solely negligence of which Curves is
accused
An exculpatory clause is valid if it is limited in scope, not ambiguous, and not contrary to public
policy.
New England Rock Case (modification without consideration) - ANS New england rock
provided contracting duties for Empire paving. Empire=general city contractor.
They agreed on price/time basis, but then water problem hindered Rock's ability to complete.
Empire failed to control water. Rock tried to work around, harder/costlier.
Modified contract to complete on time/material basis. Empire refused to pay Rock for balance.
,Court sided with Rock, modification valid, affirmed later
Modification of an executory contract is binding if it is fair and equitable in the light of
surrounding facts that the parties had not anticipated when the contract was made
Contracts in Violation of statutes or tortious conduct - ANS Generally Unenforceable legally
for any statute viol
States normally don't recognize gambling contracts
Courts will not permit contract law to violate the law of torts.
ex) bribing a sales rep
Regulatory license - ANS licensing statute that is intended to protect the public against
unqualified persons; an unlicensed person may not recover for services she has performed
unless public policy really outweighs
Revenue license - ANS licensing statute that seeks to raise money; an unlicensed person
may recover for services he has performed
Unsury statute - ANS Law establishing a maximum rate of permissible interest for which a
lender and borrower of money may contract.
(1) a loan
(2) of money
(3) that is repayable absolutely and in all events
(4) for which an interest charge is exacted in excess of the interest rate allowed by law
Certain expenses/scenarios can go above the max
covenant not to compete - ANS A contractual promise of one party to refrain from
conducting business similar to that of another party for a certain period of time and within a
specified geographical area.
For sales of buz's (protect goodwill) or part of employee's contract (protect trade secrets and
from competitors)
Weigh public policy of buz and person
Payroll Advance, Inc. v. Yates (non compete clauses) - ANS Payroll had non compete
clause with Yates, manager at branch office. Yates got fired, worked for competitor.
,Payroll filed complaint for injunctive relief from soliciting clients/using client info/trade secrets.
And damages for breach/fees
Court determined she didn't breach, covenenant very unreasonable as yates wouldn't be able to
work in 126 cities, or any bank, credit union...
Favored Yates, affirmed in appeal court
Noncompete clauses in employment agreements can be enforced only to the extent necessary
to protect the employer's legitimate interests and only if reasonably limited in duration and
geographic scope.
Exculpatory clause - ANS Provision intended to relieve a party for liability for a tort that the
party committed
Careful scrutiny in courts, commonly voided/unenforceable against public policy
Person who wants to enforce has burden to satisfy court to enforce it
Elements
1) Other party had actual knowledge of excuplpatory provision
2) Prove that either doesn't weight against enforce
a) Social importance of subject matter
b) Circumstances surrounding the execution
If social importance so great, law will not permit party to force another to give up tort rights
If inequality in bargaining power=unfair to let stronger party take advantage
Type with high risk of injury=commerically reasonable risk mgmt
unconscionable contract - ANS a contract that courts refuse to enforce in part or at all
because it is so oppressive or manifestly unfair as to be unjust
Unconscionablity only exists as a DEFENSE TO ENFOREABILITY
Some states require both substantive and procedural uncons
MATTER OF LAW FOR JUDGE TO DECIDE
Procedural Unconscionably - ANS involves scrutiny for the presence of "bargaining
naughtiness." In other words, was the negotiation process fair? Or were there procedural
irregularities
, Unfairness in formation from weaknesses in bargaining power like age, hidde3n terms, context
Substantive Unonscionability - ANS contract with oppressive or grossly unfair provisions
Party withdrawing before performance - ANS A party to illegal agreement may, before
perform, withdraw from transaction and recover whatever contributed, if the party has not
engaged serious misconduct.
Party not equally at fault - ANS Where one of the parties is less at fault than the other, he
will be allowed to recover payments made or property transferred.
Excusable Ignorance - ANS An agreement that appears to be entirely permissible may be
illegal by facts/circumstances of which one of the parties is unaware. The courts permit ignorant
party to maintain a lawsuit against the other party for damages.
Partial Illegality - ANS A contract may be partly unlawful and partly lawful. If it is possible to
separate the illegal from the legal part, some courts will enforce the legal part.
Or all not enforced sometimes
Restitution - ANS person who renders performance under illegal agreement or
unenforceable for reasons of public policy may obtain restitution from the other party, as
necessary to prevent unjust enrichment
Legally sufficient - ANS the consideration for the promise must be a legal detriment to the
promisee or a legal benefit to the promisor
Legal detriment - ANS doing an act one is not legally obligated to do or not doing an act
that one has a legal right to do
Legal benefit - ANS the obtaining by the promisor of that which he had no prior legal right
to obtain
Adequacy of consideration - ANS not required where the parties have freely agreed to the
exchange
Unilateral contracts (consideration) - ANS Promise exchange for completed
act/forbearance to act
A's promise is binding only if it is supported by consideration consisting of either a legal
detriment to B, promisee (offeree), or a legal benefit to A, promisor (offeror)
Bilateral contracts (consideration) - ANS Exchange of promises
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