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8 Cards in this Set

  • Front
  • Back
Gibson v. City of Cranston
Rhode Island
Superintendent employment contract
3 year term
immaterial breach
- not providing evaluation, objective statement, not included in every meeting
RST 241
the AHC - ad hoc committee
Jacob & Young, Inc. v. Kent
NY - Cardozo

Contractor to build house and install "Reading" brand pipe
cost of contract - $77,000
only installed 2/5 with the correct pipe

Holding: Unintentional breach that is not material does not require the breaching party to rectify in cases where the cost is grossly unfair and out of proportion to the good to be attained
O.W. Grun Roofing & Construction Co. v. Cope
Texas Court of appeals

roofing job where a brown roof has yellow streaks

since the breach is related to the home decorations, mere taste or preference, almost approaching whimsy, may be controlling with the homeowner, so that variations which might under other circumstances, be considered trifling, may be inconsistent with that "substantial performance" on which liability to pay must be predicated

cost of initial job $648
cost of replacement $770.60
damages awarded $122.60
Peacock Const. Co., Inc. v. Modern Air Conditioning, Inc.
Florida Supreme Court
terms of a construction contract refer to an industry standard and the comparison of risk - failed to fully define payment by owner as a condition precedent by only using common industry terms

Why: small contractors, who must have payment for their work in order to remain in business, will no ordinarily assume the risk of the owner's failure to pay the general contractor.
Kingston v. Preston
Kings bench 1773

Service agreement for the rights of the company dependent upon the execution of both contracts

Agreement 1 included:
- 1.25 yrs
- £200 / yrs

In exchange for Agreement 2:
- £250/mo
- reduction of stock to £4000

There are three kinds of covenants:
1. Mutual and independent
2. Conditions and dependent
3. Mutual conditions to be performed at the same time

Court found agreement to be one with conditions and dependent on one another
Lutinger v. Rosen
Conn. Sup. Court

A condition precedent is a fact or event which parties intend must exist or take place before there is a right to performance. If the condition precedent is not fulfilled the contract is not enforceable.

Facts:
Purchase price - $85,000
Deposit - $8500 (10%)
Loan Amount - $45,000 @ 8.5 % interest (only able to receive 8.75%)
Nichols v. Raynbred
Nichols agreed to sell and deliver a cow to Raynbred, who agreed to pay 50 shillings.
Neither party performed
Nichols brought an breach suit against Raynbred.

Rule:
The court held that in this case the agreement was an exchange of a promise for a promise and P was entitled to sue D for performance without showing that he himself had performed.

The promises (not the performances) must be exchanged “at one instant”; otherwise the agreement will be construed as an unenforceable “nuda pacta” (an agreement not “clothed” with consideration
Locke v. Warner Bros. Inc.
California - good-faith in contracts dispute

Total contract amount - $1.5 million
- - - - $250k / 3 years+ $750k pay or play provision
Eastwood paid $975,000