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Professor Robert Butkin

Contracts, Summer Term 2017, Room 2442

Office: Room 233

Phone: 918-631-2443 (o) or 918-361-2420 (c)

Assignments for First Week of Class

Wednesday, July 5 through Friday, July 7

Prior to the first day of class, all students are required to carefully read the Course Description and Policy, as well to scan the Course Syllabus. Students are bound by all policies described in the Course Description and Policy. In addition, prior to end of the first week of class, all students are required to enroll in the class on TWEN. When you do so, please use an email address that you will be checking periodically each day, as communication via the TWEN page will be one of the principal methods of communicating with the class.

The assignments for the first week contain several handouts. You will be provided these by email and copies of the handouts will also be made available on the table outside the Faculty Support Office.

Required Textbooks

  1. Knapp, Crystal, Prince, Problems in Contract Law: Cases and Materials (8th ed., Walters Kluwer 2016)
  1. Knapp, Crystal, Prince, Rules of Contract Law, (2015-2016) (Walters Kluwer 2015)

(We will often refer to the Rules of Contract Law as the “Statutory Supplement.”)

Note: Previous additions of these textbooks are not acceptable.

Handouts for first week’s assignment

The assignments for the first week contain several handouts. Once students have enrolled in the course on TWEN, assignments, including handouts, will be posted on TWEN. For the first week’s assignments, however, you will be provided copies of the assignments by email and copies will also be made available to you on the table outside the Faculty Support Center. Please always print out and bring your handouts to class. I list below the handouts that we will use during the first week, so that you can check to make sure you have each handout. In the event that you have difficulty receiving these handouts, please contact me by email at .

  1. Leonard v. Pepsico
  2. Raffles v. Wichehaus
  3. Raffles v. Wichelhaus reading hints
  4. Handout on the mailbox rule
  5. Contract element chart
  6. Problem set on contract formation

Abbreviations

KCP or Casebook= Knapp, Crystal & Prince, Problems in Contract Law: Cases and Materials R2d = Restatement (Second) of Contracts, reprinted in Knapp, Crystal & Prince, Rules of Contract Law

UCC = Uniform Commercial Code, reprinted in Knapp, Crystal & Prince, Rules of Contract Law

CISG = Convention on Contracts for the International Sale of Goods, reprinted in Knapp, Crystal & Prince, Rules of Contract Law

TWEN= Course page on Westlaw TWEN page

Assignment for Wednesday, July 5

An Introduction to the Study of Contract Law

Please read:

KCP, pp. 1-17

Leonard v. Pepsico (handout)

R2d, §§ 1, 17, 22, 24, 26, 33

UCC, §§ 1-102, 1-103, 2-102, 2-105 (1)

CISG Articles 1, 2, and 10

Assignment for Thursday, July 6

Classical Basis of Contractual Obligation

The Objective Theory of Contract

Please read:

Raffles v. Wichelhaus (handout)

Raffles v. Wichelhaus reading hints (handout)

KCP, pp. 29-41, 618-621, 622 n. 2

Ray v. William G. Eurice & Bros, Inc.

Park 100 Investors, Inc. v. Kartes

R2d, §201

Discussion Questions

  1. What exactly is meant by the objective theory of contract? How would you contrast it with a subjective theory of contract? What policy goals are advanced or frustrated by each of these theories?
  1. Please carefully read R2d, §201. Does R2d §201 adopt the objective theory of contract, the subjective theory of contract, or elements of both? Read each section of the rule and ask yourself whether that section reflects the objective or subjective theory of contract?

3. Consider each of the three cases—Raffles v. Wichelhaus, Ray v. Eurice Bros., and Park 100 Investors v. Kartes. Apply the rule of §201 to the facts of each of these cases. Would the result of each case be different if the court had applied §201?

Assignment for Friday, July 7

The Bargained For Exchange: Offer and Acceptance in Bilateral Contracts

KCP, pp.43-46, 51-60

Lonergan v. Scolnick

Normile v. Miller

R2d §§ 17, 22, 24, 25, 50(1), 60, 63, 36(1), 38, 39, 43, 59

Handout on the mailbox rule

Contract Element Chart (Handout) (See discussion question 2 below)

Discussion questions for July 7:

  1. R2d, § 30 states as follows:

Form of Acceptance Invited

…

(2) Unless otherwise indicated by the language or the circumstances an offer invites acceptance in any manner and any medium reasonable under the circumstances.

R2d, §51states as follows:

Acceptance of Offer Defined:

(1)Acceptance of an offer is a manifestation of assent to the terms thereof made by the offeree in a manner invited or required by the offer.

With these rules in mind, consider the following:

a. What is the difference between the manner and the medium of acceptance?

b. Can you describe the difference between “requiring” and “inviting” acceptance in a particular manner or by a particular medium? What are the consequences to the offeree of failing to do what the offer requires, as opposed to what the offer invites?

  1. Please answer the following questions:
  2. What is an offer? What is the legal effect of an offer? At what point in time is an offer effective?
  3. What is an acceptance? What is the legal effect of an acceptance? At what point in time is an acceptance effective? (Make sure you read your handout on the mailbox rule when you answer this question.)
  4. List the ways that an offeree’s power to accept an offer terminates.
  5. What is a rejection? Is a rejection made by the offeree or by the offeror? What is the legal effect of a rejection? At what point in time is a rejection effective?
  6. What is a counter-offer? Is a counter-offer made by the offeror or the offeree? What is the legal effect of a counter-offer, and when is it effective?
  7. What is a revocation? Is a revocation made by the offeror or the offeree? What is the legal effect of a revocation? At what point in time is an acceptance effective.

I have included a Contract Element Chart in the assignment folder that you can use in filling out your answers to these questions. Please complete the chart and bring it with you to class. Feel free to paraphrase the language in the pertinent Restatement rules but when you do so make sure you capture the essential elements of the rules in your paraphrase. If you wish, you may email your answers to me.

3. An introduction to option contracts

R2d § 25

Compare the following hypotheticals:

Hypothetical One: Seller offers to sell her house to Buyer for $100,000.

Hypothetical Two: On January 1, Seller gives Buyer an option for six months to buy her house for $100,000.

In each of these cases, how many promises has Seller made to Buyer?

In Hypothetical One could Seller revoke her offer if she did it prior to the time that Buyer has accepted the offer?

Suppose in Hypothetical Two, Buyer has not yet accepted the offer. Can Seller effectively revoke the offer if she does so prior to the expiration of the six month option period? What would be the legal effect if Seller revoked the offer on March 1 and Buyer accepted on April 1? What would be the legal effect if Seller revoked on July 3 and Buyer accepted on July 5? Is there any other information you need to correctly answer the questions relating to Hypothetical Two.

4. Review of Common Law Elements of Contract Formation

Review our discussion of the traditional elements of contract formation, and in addition, please read R2d § 40.

Print out and prepare for class discussion the Problem Set on Contract Formation. Please write down your answers.