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Contracts Cases Outline

Contract law concerns the creation and enforcement of binding agreements between parties. Generally, the elements of a legally enforceable contract are assent, a valid offer, acceptance, and consideration. Most contract law concepts stem from common law, but some come from other sources, such as the universally adopted Uniform Commercial Code (UCC). Below is an outline of key cases in contract law with links to the full text of virtually every case, provided free by Justia.

• 2 Mutual Misunderstanding
• 4 Destroying an Offer
• 5 Option Contracts
• 6 Acceptance
• 7 Imperfect Acceptances
• 8 Consideration
• 9 Reliance and Promissory Estoppel
• 10 Contract Terms
• 11 Integrated Agreements
• 12 Conditions Precedent
• 13 Definiteness
• 14 Unconscionability
• 16 The Statute of Frauds
• 17 Breach of Contract
• 18 Anticipatory Repudiation
• 19 Excusing Conditions
• 20 Remedies

Assent binds parties in a contract. Assent is measured by the outward manifestations of the parties, rather than the inner, private, or secret intentions of the parties. Assent may be found when a reasonable person in the situation would have believed that there was assent, even if one party lacked subjective intent to be bound.

Lucy v. Zehmer 一 A contract is enforceable if one party reasonably believes that the other party has sufficient intent to enter into the agreement, even if the other party actually does not.

Leonard v. Pepsico, Inc. 一 Generally, an advertisement is not an offer. In evaluating whether an advertisement was an offer, a court will not consider the subjective intents or views of the parties, but what an objective, reasonable person would have understood.

Gleason v. Freeman 一 Whether a binding contract exists depends on the objective expressions of intent to be bound and the definitiveness of the terms of the agreement. When a party’s words create doubt as to their intent to be bound, a court will consider the situation and conduct of the parties under the circumstances. Continuing to negotiate an agreement’s terms may be evidence that the parties did not intend to be bound.

Mutual Misunderstanding

There is no mutual assent if the parties attach materially different meanings to their manifestations. However, the meaning attached by one party may control if that party does not know or have reason to know of a different meaning attached by the other and the other knows or has reason to know of the meaning attached by the first.

Raffles v. Wichelhaus 一 A contract is invalid if there is no meeting of the minds, as is the case when there is a mutual mistake.

An offer is a manifestation of assent by an offeror to an offeree that the offeror commits to a deal on specific terms and gives the offeree the power to assent to the terms and make a contract. If the so-called offeree knows that the so-called offeror does not intend to give the offeree the power to make a contract by simply accepting, there is no offer.

Lonergan v. Scolnick 一 An invitation for offers is not by itself an offer to form an enforceable contract.

Maryland Supreme Corp. v. Blake Co. 一 A mere price quotation and an invitation to enter into negotiations is not an offer, but whether an offer was made depends on the intention of the parties and the facts and circumstances of the case.

Sateriale v. R.J. Reynolds Tobacco Co. 一 An offer to enter into a unilateral contract may exist when an advertiser, in clear and positive terms, promises performance in exchange for something requested by the advertiser, and the recipient of the advertisement reasonably may conclude that acting in accordance with the request would form a contract. Advertisements may be offers when they invite the performance of a specific act without further communication and leave nothing for negotiation. If the offeror retains some discretion in performance, this does not preclude the existence of an offer.

Destroying an Offer

There are four general ways to destroy an offer: rejection or counteroffer, revocation, lapse, or death or incapacity. An offer may be effectively revoked if the offeree learns that the offeror no longer intends to keep the offer open, even if the offer is not expressly revoked. An offer may lapse after a reasonable period of time, depending on the circumstances surrounding the offer.

Dickinson v. Dodds 一 A promise to keep an offer open for a certain period of time is not binding without the consideration and acceptance necessary to form a binding agreement. One cannot accept an offer when they have knowledge that the offeror’s mind is no longer in agreement, even if the offeror did not expressly retract the offer.

Minnesota Linseed Oil Co. v. Collier White Lead Co. 一 An acceptance must be made within a reasonable time after an offer is received, as defined by the circumstances of the case.

Option Contracts

An option contract is a promise that the offeror’s right to revoke their offer will be limited, usually by a period of time. An offer is generally binding as an option contract if it is in writing and signed by the offeror, includes purported consideration, and proposes an exchange on fair terms within a reasonable time. (An offer may also be binding as an option contract if it is made irrevocable by statute.)

Beall v. Beall 一 An option agreement must be supported by consideration to be binding. Otherwise, it is a mere offer to sell, which may be revoked at any time before acceptance. However, an option may be binding if it is accepted within the time limit and before the offer is withdrawn.

Board of Control of Eastern Michigan University v. Burgess 一 One dollar may be valid consideration for an option to purchase land, so long as the dollar is paid or tendered. Written acknowledgment of receipt of consideration merely creates a rebuttable presumption of consideration. If an option contract fails for lack of consideration, the underlying offer will not be affected. However, the underlying offer may then be revoked at any time.

An offeree exercises their power to create a contract by accepting an offer. An offeree usually has a reasonable period of time to accept an offer, unless the offer specifies a time limit. Conduct by both parties recognizing the existence of a contract may be sufficient to show an agreement, even if the moment when a sufficient agreement was formed cannot be determined.

La Salle National Bank v. Vega 一 There is no offer when the so-called offer is not intended to give the so-called offeree the power to make a contract. A contract may dictate certain requirements for acceptance and may specify the mode of acceptance required.

Ever-Tite Roofing Corp. v. Green 一 If the time limit to accept is not specified in the offer, it is within a reasonable period of time. What constitutes a reasonable period of time is determined by the nature of the proposed contract, usages of business, and other relevant circumstances that the offeree knows or has reason to know at the time of acceptance.

Maryland Supreme Corp. v. Blake Co. 一 Conduct by both parties recognizing the existence of a contract may be sufficient to show an agreement, even if the moment when a sufficient agreement was formed cannot be determined. In addition to any contractual language, usage of trade, course of dealing and performance, and general circumstances may be used to determine the terms of the parties’ agreement.

Hendricks v. Behee 一 A valid contract is only formed when acceptance of the offer is communicated to the offeror. Similarly, a revocation is only effective when it is communicated to the offeree before acceptance. Communication of acceptance of a contract to an agent of the offeree does not bind the offeror. However, when an agent of the offeree obtains notice that the offer was withdrawn, that notice is binding upon the offeree.

Adams v. Lindsell 一 Under the mailbox rule, an offer is accepted when the acceptance is put into the mail by the offeree.

Carlill v. Carbolic Smoke Ball Co. 一 An advertisement may be an express contractual promise to pay when evidence of the advertiser’s sincerity, such as a deposit of the reward in a bank, would lead a reasonable person to think that they had the power of acceptance. Acceptance of such an offer may be made by performance, and no prior notice of the acceptance is required.

Marchiondo v. Scheck 一 An offer that invites acceptance by performance, which does not also invite acceptance by promissory acceptance, may not be revoked after performance has begun. Beginning performance effectively creates an option contract conditional on completed performance in accordance with the offer’s terms.

Imperfect Acceptances

Imperfect acceptances (or implied rejections) may take the form of counteroffers, acceptances with conditions, or responses containing new terms. Under the mirror image rule, acceptance generally must be coextensive with the offer and may not include additional terms or conditions. The mirror image rule is different for transactions falling under Section 2-207 of the UCC.

Gresser v. Hotzler 一 Under the mirror image rule, acceptance must be coextensive with the offer and may not introduce additional terms or conditions. Immaterial variations included in an acceptance will not hinder contract formation. However, a material term or condition introduced in the acceptance may preclude contract formation.

Diamond Fruit Growers, Inc. v. Krack Corp. v. Metal-matic, Inc. 一 Under UCC Section 2-207, a common-law counteroffer containing different or additional terms operates as an acceptance if the responding form includes a definite and seasonable expression of acceptance. Between merchants, such terms become part of the contract unless the offer expressly limits acceptance to its terms, the terms materially alter the contract, or a party objects to the terms. If the definite and seasonable expression of acceptance is expressly conditioned on assent to the different or additional terms, a contract is not created unless the offeror assents to the new terms. If the conduct of the parties recognizes the existence of a contract, but the offeror does not assent to the new terms, only the terms on which the parties’ forms agree will remain, and any other terms may be replaced with UCC terms.

Klocek v. Gateway, Inc. 一 Additional terms included with a product do not become part of a contract if the purchaser is not a merchant, unless the purchaser expressly agrees to them.

Hancock v. American Telephone & Telegraph Co., Inc. 一 Clickwrap agreements, which require a computer user to consent to terms and conditions by clicking on a dialog box, are typically upheld when they were clearly presented to the consumer, and the consumer had an opportunity to read the agreement and unambiguously accepted the terms.

Consideration

Consideration may be virtually anything for which one would bargain in exchange for a promise. Consideration may be a return promise, some kind of property, an affirmative action, or the forbearance of a legal right. Usually, consideration is a return promise. A contract will be unenforceable if it lacks consideration or an adequate substitute.

Reed v. University of North Dakota 一 Surrender of a legal right by signing a release form in exchange for participation may constitute consideration.

McCormick v. Dresdale 一 The forbearance of a legal right may qualify as valid consideration for a settlement agreement, but claims forgone that were false and made in bad faith may not constitute valid consideration.

Kirksey v. Kirkse y 一 A mere gratuitous promise without consideration is not enforceable, even if the promisee reasonably relied upon the promise and incurred a detriment.

Hamer v. Sidway 一 The forbearance of a legal right may still be valid consideration even if such forbearance benefited the promisee and did not benefit the promisor.

Schnell v. Nell 一 Consideration of one cent, which is clearly nominal, cannot support an exchange of $600. Furthermore, a moral consideration cannot support a promise, nor will a compromise of a legally groundless claim. Past services, love, and affection cannot be legal consideration for the promise to pay money to a third person.

Hooters of America, Inc. v. Phillips 一 There is no consideration if a return promise is in fact illusory. An illusory promise is one that makes performance optional and is, therefore, no promise at all. A promise to arbitrate when one party retains the right to modify or terminate the agreement, thereby creating an imbalance of obligation, is an illusory and unenforceable promise.

Alaska Packers’ Ass’n v. Domenico 一 There is no consideration when a party refuses to perform that which they are already bound to perform until the other party agrees to increased compensation for that same performance.

Angel v. Murray 一 A contract modification is generally unenforceable without additional consideration, and a promise to perform a pre-existing duty is not valid consideration. However, if the parties voluntarily and in good faith agree to a modification, it may be enforced without additional consideration if it is made to fairly and equitably address unexpected or unanticipated circumstances that arise during performance.

Reliance and Promissory Estoppel

When a promisee reasonably and foreseeably relies on a promise to their detriment, the promise is enforced to avoid injustice. Similarly, when an offeror should reasonably expect to and does in fact induce the offeree’s substantial action or forbearance before acceptance, a binding option contract may be enforced to the extent necessary to avoid injustice.

Ricketts v. Scothorn 一 When a promisee alters their position for the worse in reliance on a promisor’s promise, and the promisor should have expected that alteration as a reasonable and probable consequence of their promise, the promise may be enforced under the doctrine of equitable estoppel.

Dixon v. Wells Fargo Bank, N.A. 一 It is not necessary that there be an intent to mislead or deceive for an otherwise unenforceable contract to be enforced under the doctrine of promissory estoppel. Instead, under the circumstances, it must be unjust to allow one party to walk away from the natural or reasonably anticipated detrimental consequences of their representations or conduct when they take advantage of or string along another party. In such cases, pre-contractual liability should be limited to reliance expenditures.

Salsbury v. Northwestern Bell Telephone Co. 一 For reasons of public policy, charitable subscriptions should be binding even if there is no consideration or detrimental reliance.

Contract Terms

Contracts may contain both express and implied terms. If a dispute arises because contract language is ambiguous, a court may consider evidence other than the language contained therein, such as the circumstances surrounding the contract. Courts sometimes infer contract terms by examining circumstances such as course of performance, course of dealing, and usage of trade.

Threadgill v. Peabody Coal Co. 一 A party may be bound by trade usage if they had actual knowledge of the trade usage, or if the trade usage was so well established as to suggest constructive knowledge. When a party has not expressly agreed to be bound by trade usage, it may only be binding if it is reasonable, generally meaning that the usage must not be illegal or violative of public policy.

Wood v. Lucy, Lady of Duff-Gordon 一 An implied promise may exist when a contract’s express terms lack mutuality of obligation.

Billman v. Hensel 一 Financing clauses impose an implied obligation to make a reasonable and good-faith effort to satisfy the condition. A promisor cannot be excused from performance because of a condition precedent when they prevented the performance of the condition themselves.

Locke v. Warner Bros., Inc. 一 A contract that gives one party discretion affecting the rights of the other party imposes a duty to exercise that discretion in good faith and in accordance with fair dealing. In cases of subjective satisfaction, so long as dissatisfaction is asserted in good faith, it does not matter whether such dissatisfaction is reasonable.

Traders Bank v. Dils 一 Generally, there is no fraud when a promise is not performed, but an exception exists when the device used to accomplish the fraud is the promise itself. Fraudulent inducement is based on a party’s fraudulent representation of their intention to perform, rather than a breach of the agreement to perform.

Frigaliment Importing Co. v. B.N.S. Int’l Sales Corp. 一 When a contract term is in dispute, a court will consider the language of the contract; definitions of the term from other sources, such as dictionaries and regulations; the circumstances surrounding the agreement, including preliminary negotiations; trade usage; and course of performance. A court will also consider whether one party knew or should have known how the other party interpreted the contract.

Random House, Inc. v. Rosetta Books LLC 一 Contract language is ambiguous if a reasonably intelligent person who has considered the context of the agreement and applicable customs, practices, usages, and terminology could objectively interpret the language in more than one way. If contract language is ambiguous, a court will consider extrinsic evidence to interpret it. If contract language can most reasonably be read to convey one certain meaning, the party wishing to deviate from that interpretation bears the burden of negotiating for language expressing that deviation.

Integrated Agreements

Only a binding, completely integrated agreement discharges prior agreements to the extent that they are within its scope. An agreement is not completely integrated if it omits a consistent, additional agreed term either agreed to for separate consideration or naturally omitted under the circumstances.

Trident Center v. Connecticut General Life Ins. Co. 一 There is no prohibition against the use of parol evidence in interpreting contracts under California state law, no matter how thoroughly they appear to be integrated.

Mitchill v. Lath 一 An oral agreement may alter a written contract if it is a collateral agreement, it does not contradict express or implied provisions of the written contract, and it is one that parties would not ordinarily include in the written contract. An oral agreement may not alter a written contract if it is closely related to the subject of the written agreement.

Masterson v. Sine 一 Parol evidence may not be used to add to or alter the terms of an integrated agreement. To determine whether a written contract was an integration, meaning a complete and final embodiment of the terms, a court will consider whether the parties intended their writing to serve as the exclusive embodiment of the agreement. If an agreement is only partially integrated, parol evidence can be used to prove elements of the agreement that are not reduced to writing.

Luther Williams, Jr., Inc. v. Johnson 一 The parol evidence rule does not prevent a court from admitting testimony concerning an oral condition precedent. Parol testimony concerning an oral condition precedent is admissible when the contract is silent on the matter, the testimony does not contradict the writing, and it may be inferred under the circumstances that the parties did not intend the writing to encompass their entire agreement.

In re Soper’s Estate 一 When contract language is ambiguous not on its face, but when practically applied, parol evidence is admissible to determine the parties’ intent.

Conditions Precedent

If parties include a condition precedent in their agreement, the performance obligations to which the condition precedent applies will not become due until the condition precedent is satisfied.

Luttinger v. Rosen 一 A contract is not binding if a condition precedent, meaning a fact or event that the parties intend must exist or take place before performance, is not met.

Dove v. Rose Acre Farms, Inc. 一 An employer may not be obligated to perform under a bonus contract until the employee has satisfied all required conditions, even if those conditions seem especially strict.

Evans, Mechwart, Hambleton & Tilton, Inc. v. Triad Architects, Ltd. 一 A pay-when-paid provision operates only as a timing mechanism, while a pay-if-paid provision operates as a condition precedent that may discharge the duty to pay if the parties clearly intended to create such a condition precedent.

Definiteness

A contract may be unenforceable if a material term of the agreement is too indefinite. A contract will not fail for indefiniteness if the parties intended to make a contract, and there is a reasonably certain basis for giving an appropriate remedy.

Varney v. Ditmars 一 The words “fair” and “reasonable” may be definite enough to be enforceable, depending on the circumstances of the case, especially when they are used synonymously with “market value.” However, such words may be too indefinite to be enforceable when their meaning cannot be determined with a reasonable degree of certainty under the circumstances.

Community Design Corp. v. Antonell 一 An uncertain contract may nevertheless be enforceable when one party benefits from another party’s performance. A jury may properly determine the exact terms of such a contract.

Walker v. Keith 一 An agreement to agree, even in a renewal option, is not enforceable. Only option contracts that specify all the material terms with substantial certainty and leave nothing to be agreed upon in the future are enforceable.

Moonlenaar v. Co-Build Companies, Inc. 一 If a renewal clause leaves rent to be determined by a subsequent agreement, it is implied that the new rent will be “reasonable” or the “fair market” value, and is thus specific enough to be enforceable. Parol evidence may be used to explain the implicit term and show what the parties intended. There may be additional reason to enforce a renewal option when a party has already paid valuable consideration, such as higher rent.

Unconscionability

A contract may be unenforceable for unconscionability in certain circumstances. A court may consider such factors as the relevant bargaining power between the parties, their relationship, the ability of the accepting party to review and understand the contract before signing, and whether the terms unreasonably favored one party.

Williams v. Walker-Thomas Furniture Co. 一 Unconscionability, including an absence of meaningful choice on the part of one of the parties together with contract terms unreasonably favorable to the other party, may be a valid defense to the enforcement of a contract.

Vernon v. Qwest Communications Int’l, Inc. 一 In Colorado, a contract is unconscionable if it is both substantively and procedurally unconscionable. Relevant factors include unequal bargaining power, lack of opportunity to read the document before signing it, use of fine print, an absence of evidence that the provision was commercially reasonable, the terms of the contract, the relationship of the parties, and the circumstances surrounding the formation of the contract.

A contract may be rescinded when a mistaken belief related to a basic assumption of both parties materially affects the agreed performance. However, rescission may not be appropriate when the party challenging the contract has assumed the risk of loss related to a mistake.

Estate of Nelson v. Rice 一 A party bears the risk of mistake when they are aware at the time of contracting that they have only limited knowledge of the facts to which the mistake relates but treat such knowledge as sufficient. One who is consciously ignorant may be said to have assumed the risks associated with that ignorance.

Grenall v. United of Omaha Life Ins. Co. 一 A decedent’s unilateral mistaken belief that they were in good health when purchasing an annuity is not a valid basis to rescind the contract. The burden of such a risk is reasonable because it is an inherent part of a life annuity contract.

The Statute of Frauds

The statute of frauds provides that certain agreements are not enforceable without a written document signed by the party against whom enforcement is sought. Agreements that fall under the statute of frauds include contracts not performed within one year of the making of the contract, contracts for the sale of goods worth $500 or more, and contracts involving an interest in land.

Radke v. Brenon 一 A letter written to offer land for sale is sufficient to satisfy the Minnesota statute of frauds. Under the statute, a note or memorandum may be sufficient evidence to enforce an oral contract so long as the writing expresses consideration, is signed by the selling party or their lawful agent authorized in writing, and states expressly or by necessary implication the parties to the contract, the land involved, and the general terms and conditions of the sale. When all the evidence clearly indicates that an oral contract was made, a court may overlook technical requirements that would otherwise lead to an outcome contrary to the statute's purpose.

DF Activities Corp. v. Brown 一 There is an exception to the UCC's statute of frauds when the party against whom enforcement is sought admits in court that an oral contract for sale was made. However, once one party has submitted a sworn statement denying the existence of a contract, the other party cannot continue a lawsuit under the exception, hoping that the first party will perjure themselves.

McIntosh v. Murphy 一 A court has discretion to ignore the statute of frauds to avoid injustice, especially considering the doctrines of part performance and equitable estoppel.

Breach of Contract

Once a party breaches a contract, the other party has the right to sue for damages. If the breach is material, the party may have the right to suspend their own performance while pursuing damages. A breach is not material if there was substantial performance of the contract.

Kingston v. Preston 一 If a condition precedent is not met by one party, the other has no duty to perform, since their obligation to perform does not arise until the condition is satisfied.

Jacob & Youngs, Inc. v. Kent 一 Parties are obligated to fully perform under their contracts, but a trivial and innocent omission may sometimes be excused to the extent that damages may be limited to the difference in value between the performance bargained for and the actual performance, rather than the cost of replacement.

Anticipatory Repudiation

Anticipatory repudiation occurs when one party unequivocally manifests their intention not to perform their contractual obligations before they become due. Generally, an aggrieved party may await performance for a reasonable period of time or pursue a remedy for the breach.

Hochster v. De La Tour 一 Once a party repudiates their contractual obligations, the other party has the right to sue under the contract, even if performance has not yet become due.

Norcon Power Partners, L.P. v. Niagara Mohawk Power Corp. 一 If one party reasonably believes that the other will commit a breach by non-performance, they have the right to demand adequate assurance of future performance. This UCC principle is equally applicable under New York common law.

Excusing Conditions

Certain conditions may excuse a party from performing their contractual obligations. Under the doctrine of impossibility, a party may generally be excused from performance if performance becomes impossible or impracticable due to no fault of their own. Under the doctrine of frustration of purpose, a party may be excused from performance if their principal purpose for contracting is substantially frustrated by no fault of their own.

Acme Markets, Inc. v. Federal Armored Express, Inc. 一 If the non-occurrence of a condition would cause a disproportionate forfeiture, a court may excuse the non-occurrence so long as the condition was an immaterial part of the agreement. To determine whether a forfeiture is disproportionate, a court must weigh the extent of the obligee’s forfeiture against the importance of the risk against which the obligor sought to protect and the degree to which that protection would be lost if the non-occurrence was excused.

Alderman v. Davidson 一 A party’s waiver of their right to enforce one provision of a contract may waive their right to enforce another provision if their waiver intended such a consequence as indicated by their conduct. Even if the party did not intend to waive their right, they may be estopped if their conduct induced the other party into reasonably believing that strict compliance was not necessary.

Zwick v. Lodewijk Corp. 一 A clause in a lease providing that a lessor’s failure to act on any default does not waive the right to declare a default is not effective. A non-waiver provision may be considered evidence of non-waiver, but it itself can be waived. Additionally, the statute of frauds does not bar an oral modification to extend the time for performance, including payment.

Taylor v. Caldwell 一 Impossibility may excuse a borrower or bailee from returning a bailed item if performance becomes impossible because the item has perished, so long as the impossibility is not due to the fault of the borrower or bailee.

Hewitt v. Biscaro 一 Only a governmental order or promulgation of a governmental regulation rises to the level of an event that may excuse performance based on impracticability. A verbal instruction is insufficient. A party may not assert that a condition excuses them from performance if the attempt to avoid performance is not made in good faith and in accordance with fair dealing.

Route 6 Outparcels, LLC v. Ruby Tuesday, Inc. 一 When parties define the contours of a force majeure provision, such contours dictate its application, effect, and scope. A party may not use a force majeure clause to excuse their non-performance when they expressly limited the clause to events beyond the control of the non-performing party. While a global economic downturn is not within a party’s control, their decisions regarding how to cope with the downturn are.

Krell v. Henry 一 When a party’s purpose for contracting is frustrated by the non-occurrence of a condition, the occurrence of which was a basic assumption of the contract, the party’s duties may be discharged so long as the non-occurrence was not their fault.

Remedies for breach of contract protect each party’s expectation interests, reliance interests, and restitution interests. Parties often include liquidated damages provisions in their contracts, under which they agree on damages in event of a breach ahead of time. Parties are also entitled to limit available remedies by including provisions such as damages caps.

Carr-Gottstein Properties v. Benedict 一 A liquidated damages provision is valid when actual damages would be difficult to calculate, so long as the agreed amount is a reasonable forecast of likely damages and not so disproportionate an amount as to be punitive in nature.

O’Brian v. Langley School 一 A party opposing a liquidated damages provision may be entitled to conduct discovery to prove that the provision is an unenforceable penalty.

Nohe v. Roblyn Development Corp. 一 A court has discretion to compare the damages fixed in a liquidated damages provision to actual damages and choose not to enforce the liquidated damages provision if the difference between the provision and actual damages is unreasonable.

Ash Park, LLC v. Alexander & Bishop, Ltd. 一 When a contract for the sale of land is breached, a court has discretion to order specific performance, regardless of whether it is demonstrated that a legal remedy would be inadequate.

Reed Foundation, Inc. v. Franklin D. Roosevelt Four Freedoms Park, LLC 一 A court may order specific performance even if this would offend aesthetic considerations.

i.Lan Systems, Inc. v. Netscout Service Level Corp. 一 Specific performance may be appropriate when goods are unique or irreplaceable as a practical matter, but specific performance may not be appropriate when it is the contract itself that is unique, rather than the goods.

Grossinger Motorcorp, Inc. v. American National Bank and Trust Co. 一 A liquidated damages provision is only enforceable if the parties intended to agree to settle monetary damages in advance. Therefore, an optional liquidated damages clause is unenforceable because it shows that the parties did not have the necessary intent.

Groves v. John Wunder Co. 一 When a construction contract is breached, the correct measure of damages is the cost of remedying the defect, rather than the difference in value between the land as it was before the contract was made and the land as it would have been had the contract been performed.

Peevyhouse v. Garland Coal & Mining Co. 一 A breach of contract claim cannot give rise to a damages award so substantial that it results in economic waste. If a breach is merely incidental to the main purpose of the contract, and the economic benefit that would result from full performance would be grossly disproportionate to the cost of performance, damages may be limited to the diminution in value to the premises due to the non-performance.

Parker v. Twentieth Century-Fox Film Corp. 一 The measure of damages for wrongful discharge is the salary that the employee would have earned, minus the amount that the employer affirmatively proves that the employee has earned or with reasonable effort might have earned from other employment. However, the employer must show that the other employment was comparable or substantially similar to the job from which the employee was discharged.

R.R. Donnelley & Sons Co. v. Vanguard Transp. Systems, Inc. 一 A non-breaching party’s duty to mitigate damages is suspended when they reasonably rely upon the breaching party’s assurances that they would correct the issue. When reliance is not reasonable, a non-breaching party retains their duty to mitigate, even though the breaching party could conceivably cure the breach.

Hadley v. Baxendale 一 Damages for breach of contract may be any damages naturally arising from the breach or any damages that the parties could have reasonably contemplated at the time when the contract was made.

Manouchehri v. Heim 一 The measure of direct damages for breach of warranty is the difference between the value of the goods as warranted and the value of the goods actually delivered. This value may reasonably be approximated by the cost to repair the goods. In instances in which goods are irreparable or non-replaceable, a court may use other proper grounds to approximate the value.

This outline has been compiled by the Justia team for solely educational purposes and should not be treated as an independent source of legal authority or a summary of the current state of the law. Students should use this outline as a supplement rather than a substitute for course-specific outlines.

Last reviewed August 2023

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Contract Law Cases: 21 Leading Case on the Law of Contract

• Post author: Edeh Samuel Chukwuemeka ACMC
• Post published: November 11, 2019
• Post category: Law Reporting

In today’s post, I will be sharing a list of some of the leading cases on contract law. This is basically to help scholars, lawyers and law students all of the world, find contract law cases so as to enable them consolidate their legal arguments, articles and points in law examinations. If you have been searching for cases to fortify your points in any matter that concerns contract, then search no further. Trust me; this article contains almost all the leading cases on the law of contract.

Nonetheless, before I move to the crux of this article, I would like to share some of basic information about the law of contract with you. This is also very pertinent because it will help you to understand the cases that will be mentioned here wholesomely. So what is a contract?

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Table of Contents

What is a contract?

Contract has been given different definitions by different people. According to Sir Fredrick Pollock , A contract is a promise or set of promises which the law will efforce. More so, the American Law Institute gave an elaborate definition in their paper titled “ Restatement of American Law: Contracts ” when they defined contract as “ a promise or set of promises, the breach of which the law gives a remedy, or performance of which the law in some way recognizes as a duty.” 

In my view, “a contact is an agreement giving rise to obligations which are enforced or recognized by law”. Conversely, it should be noted that while every contract is ultimately an agreement, it is not every agreement that is a contract.

Characteristics of a contract

Below are some of the characteristics of a binding contract:

• There must be an offer and acceptance (the agreement)
• There must be an intention to create legal relations
• There is a requirement of written formalities in some cases
• There must be consideration (Except if the agreement is under seal)
• The parties must also have the capacity to contact
• There must be genuineness of consent by the parties to the terms of the contract
• The contract must not be contrary to public policy

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Classification of Contract

Basically, contract is classified into Simple contract or Formal contract. The two classifications of contract will be explained explicitly below:

Simple contract:

A simple contract is also called an informal contract. It is a contract, whether writen or oral, which is not under seal. It can also be implied from the conduct of parties. Simple contract are not binding except there is consideration. In a simple or informal contract, only a party who has furnished consideration can bring an action to enforce the contract.

Formal contract:

On the other hand, a formal contract is a contract which is reduced to writing, singed by parties contracting and impressed with a seal. It is also called a specialty contact or a deed. The basic features of a formal contract is to that it must be signed, sealed and delivered. These actions constitute the execution of a deed.

Now that you known what a contract is, the various types of contract and the characteristics of a contract, we will now see some of the leading cases in contract law.

Contact law cases

Below are some of the cases in the law of contract:

Carlill v Carbolic Smoke Ball Co

Andrews v hopkinson, fisher v bell, spencer v harding, central london property trust ltd v high trees house ltd, brodgen v metropolitan railway co., lampleigh v braithwaite, roscolar v thomas, stevenson v mclean, eastwood v kenyon, white v bluet, combe v combe, dela bere v pearson, read v dean, bournemouth athletic football club ltd v manchester united football club, tinn v hoffman & co, couturier v hastie.

• Dunlop Pneumatic Tyre Co Ltd v Selfridge

Griffith v Brymer

Darkin v lee, startup v macdonald.

Yeah! Those are some of the leading cases in contract law. Nevertheless, as we continue, will be sharing with you the case summary of each of the cases mentioned in the list above with their citations. I enjoin you to read painstakingly so that you will achieve your purpose for reading this work. Now, below is the case summary of the leading cases in the law of contract.

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Citation : [1893] 1 QB 256

The case of Carlill v Carbolic Smoke Ball Co is a good illustration of a unilateral contract. In this case, the defendant were proprietors of a medical preparation called “ The Carbolic Smoke Ball” . They advertised in various newspapers and magazines offering to pay €100 to any person who contracted influenza after using the ball three times a day for two weeks.

They added that they had deposited €1,000 at the Alliance Bank, Regent Street, to show their sincerity in the matter. The plaintiff, a lady, used the ball as was advertised and was attacked by influenza. She sued for €100 and the company agured that there was no intention to create legal relations.

The court held in favor of the plaintiff and said that the fact that €1,000 was deposited at the Alliance Bank, shows that there was an intention to create legal relations.

Citation: [1956] 3 All ER 422

The case of Andrews v Hopkinson is one of the contract cases that explains where a collateral contract will fail with the main contract. Apparently, a collateral contract is a preliminary contract which is usually oral and forms the reason or the inducement for the making of another related contract.

In the case of Andrews v Hopkinson, the collateral contract failed with the main contract. Here, a dealer said to the plaintiff, “ It is a nice little bus, I would stake my life on it. You will have no trouble with it. ” The plaintiff entered into a written hire-purchase contract with a finance company. The car was not roadworthy. The court held that the dealer was liable.

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Citation: [1960] 3 All ER 731

The case of Fisher v Bell is a contract case that is usually used to explain the difference between an invitation to treat and an offer. In this case, the respondent, shopkeeper, displayed a knife with a price tag. He was charged for offering to sale a knife contrary to section 1(1) of the Restriction of Offensive Weapons Act 1959 .

The question that arose for determination in court was whether the display of this knife constituted an offer for sale within the meaning in the Restriction of Offensive Weapons Act 1959. It was held by the Court of Appeal that the display was an invitation to offer and so the shopkeeper was not liable.

Citation: [1870] LR 5 CP 561

In Spencer v Harding, the defendant sent out circulars inviting tenders to buy stock. The Plaintiff claimed that the circular was an offer to sell the stock to the highest bidder and that they had sent the highest bid which the plaintiff had refused to accept.

The court held that the circular was an invitation to treat and not an offer. Wiles J said thus: “ It is a mere attempt to ascertain whether an offer can be obtained within such a margin as the seller are willing to accept.”

Citation : [1947] KB 130

The case of Central London Property Trust Ltd v High Trees House Ltd is also one of the leading cases in the law of contract. This case changed the former rule of law in pinnel’s case. The case is usually referred to as the High Trees case or principle of Equitable Estoppel.

In Central London Property Trust Ltd v High Trees House Ltd, the plaintiff least a block of flat to the defendant at a rent of €2,500 per annum in September 1939. In January 1940 the plaintiff agreed in writing to reduce the rent by half because of war condition which had caused many vacancies in the flats. No express limit was set for the operation of this reduction.

From 1940 to 1945 the defendant paid the reduced rent. In 1945, the flats became fully occupied again. The plaintiff’s company then claimed the full rent, suing for rent at the ordinary rate for the last two quarters of 1945.

It was held by Lord Denning that, as agreement for the reduction of rent had been acted upon by the defendants, the plaintiff were estopped in equity from claiming the full rent from 1941 until early 1945 when the flats were fully let.

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Citation: [1877] 2 AC 666

This is one of the contract cases that is offen cited to backup the rule that a contract can be made by conduct. In this case, Brodgen had for many year supplied the defendant company with coal without a formal contract. Brodgen then suggested that the relationship be regularised through a formal contract. Metropolitan’s agent sent a draft agreement to Brodgen who inserted an Arbitrator’s name in the space provided for it, signed it and wrote it away in his drawer and nothing further was done to complete its execution.

Both parties acted on the strength of the terms contained in the draft, supplying and paying for the coal in accordance with its clauses until a dispute arose and Brodgen denied that any binding contract existed between them. The house of Lord’s held that a contract arisen by conduct.

Citation : [1615] Hob 105

In this case, the defendant, Braithwaite, had killed Patrick Mahume. He then requested the plaintiff to do all he could to obtain a royal pardon for him from the king. To this end, the plaintiff exerted himself and undertook a lot of journeys to and from London, incurring certain expenses.

He succeeded in obtaining the pardon and the defendant promised to pay him the sume of €100 for his trouble and expenses. It was held that the plaintiff was entitled to the sum as his services were procured at the defendant’s previous request an in circumstances in which it was responsible to expect that payment would be made for the services. Accordingly, there was consideration for the defendant’s promise.

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Citation: [1842] 2QB 234

To wholesomely discuss past consideration as a topic in the law of contract, the case of Roscolar v Thomas must be mentioned. In this case, the plaintiff bought a horse from the defendant. After sometime, the defendant promised the plaintiff that it was a sound horse, free from vice. The horse was in fact a vicious horse. The plaintiff sued the defendant for breach of promise.

It was held that the action will fail. If the promise had been given at the time of the sale, it would have been supported by consideration, but since it was given after the sales had taken place, the consideration which the plaintiff furnished was past and he had furnished no new consideration for the defendant’s promise.

Citation: [1880] 5 QBD 346

In Stevenson v McLean, the defendant offered on a Sunday to sell the plaintiff some quantity of iron. The offer was left open till close of business on Monday. On Monday, the plaintiff telegraphed ro ask for information. On that same Monday, at 10:00am, the defendant received a telegram but didn’t reply it. On that same day, the plaintiff accepted the original offer at 1.34pm. At 1.25pm the defendant revoked the offer by telegram. At 1.46pm the plaintiff received telegram of revocation.

On hearing the matter, the court held that the plaintiff first telegram was not a counter offer but a mere inquiry, so that the offer was still open when the plaintiff accepted it. The plaintiff had accepted the offer before the defendant’s revocation was communicated to him.

Citation: [1840] 11 Ad & El 438

Eastwood v Kenyon is the case in contract that is used to explain that moral obligation does not amount to consideration. In this case, the death of John Sutcliff left his infant daughter as his sole heiress. The plaintiff, as the girl’s guardian, spent money on her education and for the benefit of the estate, and the girl, when she came of age, promised ro reimburse him.

She then married the defendant, who also promised to pay. The plaintiff sued the plaintiff on this promise and the court dismissed the action, reiterating the rule that moral obligation does not amount to consideration. The court noted that if the notion is accepted it would destroy the requirement of consideration as the law requires an additional element to the defendant’s promise. That element is consideration and it cannot be a mere moral obligation.

Citation: [1853] 23 LJ Ex 36

The case of White v Bluet explains the position that consideration in contract need not to be adequate by sufficient. In this case, a sun owned his father a sum of money. Subsequently, the sun harassed his father with frequent complaints about the way his father distributed his wealth among his children which was unfavorable to him.

The son then alleged that his father promised him that if he would stop complaining, he (the father) would discharge him from the debt and he stopped. The question before the court was whether this action of the son constituted consideration for the father’s promise. The court held that it did not because:

The father had a right to distribute his property in any manner he liked and so the son had no right to complain in the first place.

The son had no right to complain; thus is abstaining from doing what he had no right to do constituted no consideration for the father’s promise.

Citation : [1951] 2 KB 213

This is a contract case where the court held that consideration is an essential element of a binding contract. Here, a wife started proceedings against the husband for divorce and she obtained a decree nisi against the husband. The husband then promised to pay her an annual allowance of €100 free of tax as a permanent maintenance for her.

After the decree nisi was made absolute, the husband never kept his promise. Thereupon the wife brought an action against him to make him pay the money. The court held that she didn’t offer consideration for the husband’s promise.

Citation : [1908] 1 KB 280

In this case, the defendant placed an advertisement in the newspaper to give financial advice to readers. The plaintiff wrote, asking for the name of a good stockbroker. The editor negligently recommended someone who was an undischarged bankrupt.

On the strength of the editor’s advice, the plaintiff sent some money to the broker, who misappropriated it. The plaintiff brought an action in court seeking to recover his money from the the newspaper. The issue in court was whether the plaintiff furnished any consideration.

The court considered that many people bought newspaper because of that publication. It further held that the plaintiff had furnished consideration for the contract. The defendant could and did benefit from the plaintiff buying the newspaper and the plaintiff had also consented to the publication of his question in the defendant’s newspaper if the defendants wished to do so.

Citation: [1949] 1 KB 188

In the case of Read v Dean, the plaintiff hired the defendant’s moto launch for a holiday with his family on the river Thames. Two hours after he had set sail, the launch caught fire.

The firefighting equipment provided in the launch was out of order and the plaintiff suffered serious injuries and lost all his belongings on board. It was held that there must be implied into the contract of hire an undertaking by the defendant to make the launch as fit for the purpose of the hiring as reasonable care could make it, and that the defendant was therefore liable.

Citation: Vol Xi (2) Student Law Report 22

The case of Bournemouth Athletic Football Club Ltd v Manchester United Football Club is another popular case in the law of contract. In this case, a transfer agreement was made between the two football clubs. Under it, a footballer was to be transferred from Bournemouth to Manchester united for €194,445 in addition, a further sum of €27,777 was to be paid to Bournmouth if the footballer scored 20 goals in the first-team competitive matches. From October to December 1972, the football scored 4 goals in 11 matches. In December, Manchester United appointed a new manager who re-organised the team.

As a result, the footballer was transferred in early 1973 to Westham United Football club for €170,000. The plaintiff argued that the contract of the defendant in transferring the footballer was in Breach of the contract because there was an implied term in the contract that the footballer was entitled to a reasonable opportunity to score the goals. The court of appeal held that such term must be implied in order to give business efficacy to a contract.

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Citation: [1873] 29 LT 271

The court in Tinn v Hoffman & Co held that a cross-offer does not constitute a contract.

The facts of the case are as follows: the defendant wrote to the plaintiff offering to sell him 800 tons of iron at 69s per ton. The plaintiff wrote to the defendant, on the same day offering to buy 800 tons of iron at 69s per ton. The letters crossed in the post and the court held that there was no contract.

Citation: [1856] 5 HLC 673

This is the leading contract law case that stipulates the position of the law where there is a mistake as to the existence of the subject matter of the contract. In Couturier v Hastie, a man bought a cargo of corn which he and the seller thought at the time of the contract, to be in transit from Salonica to England, but which, unknown to them had become fermented and had already been sold by the master of the ship to a Tunis. It was held that the contract was void and the buyer not liable for the price of the cargo.

In the words of Lord Cranworth , “ The contract plainly imports that there was something which was to be sold at the time of the contract and something to be purchased. No such thing existing; I think the Court of Exchequer Chamber has come to the only reasonable conclusion upon it . ..”

Dunlop Pneumatic Tyre Co Ltd v Selfridge Ltd

Citation: [1915] AC 847

This is one of the leading contract cases that is associated with the principle of privity of contract. The principle states that only a party to a contract can enjoy right or suffer burdens partaining to the contract.

In Dunlop Pneumatic Tyre Co Ltd v Selfridge Ltd, the plaintiff sold tyres to a certain dealer on the understanding that he would not re-sell below a certain price and that in the event of a sale to customers the dealer would extract the same promise from them.

The dealer sole the tyres to Selfridge who agreed to observe the restrictions and to pay Dunlop €5 for each Tyre they sold below the restricted price. Selfridge in fact sold the tyres below the restricted price to a customer and Dunlop brought an action against them to enforce the promise to pay €5 per tyre, for each breach.

It was held that while Selfridge had committed to breach the contract between him and the dealer, Dunlop was not a party to this contract and had furnished no consideration for the defendant’s promise.

Citation: [1903] 19 TLR 434

This is one of the cases under Mistake as a topic in contract law. In Griffith v Brymer, a contract was made for the hire of a room on 26 June 1902, the day fixed for the coronation of King Edward VII, for the purpose of viewing the coronation procession.

At the time the contract was made, it was unknown to the parties, the decision to postpone the coronation had already been taken. Since the contract was merely for the hire of the room on 26 June to view the coronation procession, performance was impossible. The contract was held to be void.

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Citation: [1916] 1 KB 566.

This contract case explains the principle that where a party who performed his obligation defectively but substantially can sue for the contract price, but he will be liable to have deducted from the price the cost of making good the deficiency.

In Darkin v Lee, the plaintiff contracted to carry out repairs on the defendant’s house. He carried out the repairs but the work was not done in accordance with the contact’s specification. It was held that the plaintiff was entitled to be paid the agreed sum subject to a deductive equal to the cost of putting the defect right.

Citation: [1843] 6 M & G 593.

The rule of law in Startup v Macdonald is that; where the obligation under a contract is to deliver goods or render services, tender of such goods and services which is refused, discharges the party making the tender from any further obligation and enables him to sue for a breach of contract.

In Startup v Macdonald, the plaintiff agreed to sell 10 tonnes of oil to the defendant within the last 14 days of March. Pursuant to this agreement, the plaintiff delivered the oil to the defendant at 8:30pm on 31 March, a Saturday, but the defendant refused to accept the delivery because of the lateness of the hour.

It was held that the plaintiff made a valid tender of the goods and therefore discharged his obligations under the contract and the defendant was therfore liable in damages for non-acceptance of the goods.

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Final words

Those are some of the leading contract law cases you should know. Hope this article was able to give you exactly what you wanted. If you have any case you were really expecting to be in this list but was not mentioned here, kindly let us know using the comment section. Accordingly, share you comments and questions in the comment section too. I will be very glad to give you a reply.

Edeh Samuel Chukwuemeka, ACMC, is a lawyer and a certified mediator/conciliator in Nigeria. He is also a developer with knowledge in various programming languages. Samuel is determined to leverage his skills in technology, SEO, and legal practice to revolutionize the legal profession worldwide by creating web and mobile applications that simplify legal research. Sam is also passionate about educating and providing valuable information to people.

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Contract Law Case Notes

Contract cases.

This page provides a list of cases cited in our  Contract Law Lecture Notes , as well as other cases you might find useful. It also provides links to case-notes and summaries.

• Abbey National Bank plc v Stringer
• Adams v Lindsell
• Addis v Gramophone
• AEG (UK) Ltd v Logic Resource Ltd
• African Export-Import Bank v Shebah Exploration & Production Company Ltd
• Ailsa Craig Fishing Co Ltd v Malvern Fishing Co Ltd
• Ajayi v RT Briscoe (Nigeria) Ltd
• Alan Auld Associates v Rick Pollard Associates
• Albert v MIB
• Alder v Moore
• Alderslade v Hendon Laundry Ltd
• Alfred Dunhill v Sunoptic
• Alfred McAlpine Construction Ltd v Panatown Ltd
• Ali v Petroleum Company of Trinidad and Tobago
• Allcard v Skinner
• American Cyanamid Co v Ethicon Ltd
• Anglia Television v Reed
• Antonio v Antonio
• Arbuthnott v Fagan
• Arcos Ltd v EA Ronaasen & Son
• Arnold v Britton
• Ashfaq v International Insurance Co of Hannover
• Atlantic Baron, The
• Attorney General of Belize v Belize Telecom Ltd
• Atlas Express Ltd v Kafko
• Attica Sea Carriers v Ferrostaal Poseidon Bulk Reederi GmbH (The Puerto Buitrago)
• Attorney General v Blake
• Attrill v Dresdner Kleinwort Ltd
• Attwood v Small
• Avery v Bowden
• AXA Sun Life Services Plc v Campbell Martin Ltd
• Azimut-Benetti SpA v Healey
• Aziz v Ciaxa d’Estalvis de Catalunya I Manresa (C-226/12)
• B & S Contracts & Design v Victor Green Publications
• Baird Textile   Holdings v Marks & Spencer
• Baker v Black Sea & Baltic General Insurance Co Ltd
• Baker v Jones
• Balfour v Balfour
• Bank of Australasia v Palmer
• Bank of Credit and Commerce International (BCCI) SA v Aboody
• Bannerman v White
• Barbudev v Eurocom Cable Management
• Barclays Bank v Fairclough Building
• Barry v Davies
• Barton v Armstrong
• Bell v Lever bros
• Bentsen v Taylor Sons
• Berkeley Community Villages Ltd v Pullen
• Beswick v Beswick
• Bieber v Teathers Ltd (In Liquidation)
• Bisset v Wilkinson
• Blackpool and Fylde Aero Club v Blackpool BC
• Blue v Ashley
• BNY Mellon Corporate Trustee Services Ltd v LBG Capital No 1 Plc
• Bolton v Madden
• Bolton v Mahadeva
• Borrelli v Ting
• Boulton v Jones
• BP Exploration Co (Libya) Ltd v Hunt (No 2)
• BP Refinery (Westernport) Pty Ltd v Shire of Hastings
• Bradbury v Morgan
• Brikom Investments Ltd v Carr
• Brinkibon Ltd v Stahag Stahl GmbH  
• British Fermentation Products v Compair Reavell
• British Steel Corp v Cleveland Bridge and Engineering Co Ltd
• British Westinghouse Electric Co Ltd v Underground Electric Railways Co of London Ltd
• Britoil plc v Hunt Overseas Oil Inc
• Brocklehurst’s Estate , Re
• Brogden v Metropolitan Co
• BS & N Ltd v Micado Shipping (The Seaflower)
• Bunge Corporation v Tradax SA
• Bunge SA v Kyla Shipping Company Ltd
• Bunge SA v Nidera BV
• Butler Machine Tool v Ex-Cell-O Corporation
• BV Nederlandse Industrie Van Eiprodukten v Rembrandt Enterprises
• Byrne & Co v Leon Van Tien Hoven & Co
• C&P Haulage v Middleton
• Cable & Wireless plc v IBM UK
• Canada Steamship Lines Ltd v R
• Canary Wharf (BP4) T1 Ltd v European Medicines Agency
• Car and Universal Finance   Co Ltd v Caldwell
• Carlill v Carbolic Smoke Ball
• Casehub Ltd v Wolf Cola Ltd
• Cavendish Square Holding BV v Makdessi
• CCC Films v Impact Quadrant Ltd
• Central London Property Trust Ltd v High Trees House Ltd
• Centrovincial Estates plc v Merchant Investors Assurance Company Ltd
• Chandler v Webster
• Chapelton v Barry UDC
• Chappell v Times   Newspapers
• Chappell v Nestle
• Chartbrook Ltd v Persimmon Homes Ltd
• Chudley v Clydesdale Bank Plc
• CIBC Mortgages plc v Pitt
• Circle Freight International Ltd v Medeast Gulf Exports Ltd
• Clarke v Dickson
• Clea Shipping v Bulk Oil (The Alaskan Trader) (No 2)
• Clef Aquitaine SARL v Laporte Materials (Barrow) Ltd
• Clough v London and North Western Railway
• Cohen v Roche
• Collier v P & MJ Wright (Holdings) Ltd 
• Collins v Godefroy
• Combe v Combe
• Commission for New Towns v Cooper (GB) Limited
• Conlon v Simms
• Co-op insurance v Argyll Stores
• Cooper v Phibbs
• Couchman v Hill
• Couturier v Hastie
• Cramaso LLP v Ogilvie-Grant
• Credit Lyonnais Bank Nederland NV v Burch
• Cremdean Properties Ltd v Nash
• Crossley v Faithful & Gould Holdings Ltd
• CTI Group Inc v Transclear SA (The Mary Nour)
• CTN Cash & Carry Ltd v Gallaher
• Cundy v Lindsay
• Cunliffe-Owen v Teather & Greenwood
• Currie v Misa
• Cutter v Powell
• D & C Builders v Rees
• Dakin & Co Ltd v Lee
• Darlington BC v Wiltshier Northern Ltd
• Daulia Ltd v Four Millbank Nominees Ltd
• Daventry DC v Daventry and District Housing Ltd
• Davis   Contractors v Fareham   UDC
• De Wutz v Hendricks
• Decro Wall v Practitioners in Marketing
• Denne v Light
• Derry v Peek
• Dick Bentley Productions Ltd v Harold Smith (Motors) Ltd
• Dickinson v Dodds
• Dimmock v Hallett
• Dimskal Shipping Co SA v International Transport Workers Federation
• Director General of Fair Trading v First National Bank
• Dolphin Maritime & Aviation Services Ltd v Sveriges Angfartygs Assurans Forening
• Doyle v Olby
• Drew v Daniel
• DSND Subsea Ltd v Petroleum Geo Services ASA 
• Dunlop Pneumatic Tyre Co Ltd v Selfridge Ltd
• Dunlop Pneumatic Tyre Co Ltd v New Garage & Motor Co Ltd
• Dunnachie v Kingston-upon-Hull City Council
• Durham Tees Valley Airport Ltd v Bmibaby Ltd
• East v Maurer
• Eastwood v Kenyon
• Ecay v Godfrey
• Edgington v Fitzmaurice
• Edwards v Skyways Ltd
• Edwinton Commercial Corporation v Tsavliris Russ Ltd (The Sea Angel)
• El Awadi v Bank of Credit and Commerce International SA
• Emery v UCB Corporate Services
• Entores Ltd v Miles Far East Corporation
• Errington v Errington Woods
• Ertel Bieber v Rio Tinto
• Esso Petroleum v Commissioners of Customs & Excise
• Esso Petroleum v Mardon
• Esso Petroleum Ltd v Niad Ltd
• Evia Luck, The
• Experience Hendrix LLC v PPX Enterprises Inc
• Falcke v Gray  
• Farley v Skinner
• FC Shepherd v Jerrom
• Felthouse v Bindley
• Fercometal SARL v Mediterranean Shipping Co SA, The Simona
• Fibrosa Spolka Akcyjna v Fairbairn Lawson Combe Barbour
• Financings Ltd v Stimson
• First Plus Financial Group v Hewett
• First Tower Trustees Ltd v CDS (Superstores International) Ltd
• Foakes v Beer
• Foley v Classique Coaches
• Force India Formula One Team Ltd v Etihad Airways PJSC
• Foster v Mackinnon
• Frederick Rose Ltd v William Pim Jnr & Co Ltd
• Freeth v Burr
• Frost v Knight
• FSHC Group Holdings Ltd v GLAS Trust Corp
• Galoo v Bright Grahame Murray
• Gamerco SA v ICM/Fair Warning Agency Ltd
• Gebruder Metelmann GmbH & Co v NBR (London) Ltd
• Geier v Kujawa, Weston & Warne Bros (Transport) Ltd
• General Billposting Co v Atkinson
• George Mitchell v Finney Lock Seeds
• George Wimpey UK Ltd v VI Components Ltd
• Gibbons v Proctor
• Gibson v Manchester City Council
• Gillespie Bros & Co Ltd v Roy Bowles Transport Ltd
• Gillespie Bros & Co v Cheney, Eggar & Co
• Glasbrook Bros Ltd v Glamorgan CC
• Globalia Business Travel SAU v Fulton Shipping Inc
• Golden Strait Corporation v Nippon Yusen Kubishika Kaisha (The Golden Victory)
• Goldsworthy v Brickell
• Goodchild v Bradbury
• Goodlife Foods Ltd v Hall Fire Protection Ltd 
• Gould v Gould
• Government of Zanzibar v British Aerospace Ltd
• Grainger & Son v Gough
• Gran Gelato Ltd v Richliff (Group) Ltd
• Granatino v Radmacher
• Grant v Bragg
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Contract Law Mastery | SQE Prep in UK

Contract Law Case Studies: Real-world Scenarios and Solutions

Introduction:

Welcome to SQE Contract Law, where we specialize in providing expert legal advice and solutions in the field of contract law. In this blog post, we will delve into real-world scenarios and present case studies that highlight the importance of understanding and meticulously navigating the intricacies of contract law. By exploring these scenarios, we aim to equip you with the knowledge to identify potential pitfalls and implement effective solutions in your own contractual agreements.

Case Study 1: The Breach of Contract

Company A enters into a contract with Company B for the supply of goods. Company A, however, fails to deliver the goods within the agreed-upon timeframe. As a result, Company B suffers significant financial losses and considers legal action for breach of contract.

Key Points:

1. Breach of Contract: Company A’s failure to deliver the goods within the agreed-upon timeframe constitutes a breach of contract.

2. Damages: Company B can seek compensation for the financial losses incurred due to the breach.

3. Mitigation: Company B must take reasonable steps to mitigate the damages, such as seeking an alternative supplier.

Our legal team at SQE Contract Law will assist Company B in pursuing legal action for breach of contract. We will carefully analyze the terms of the contract, gather evidence of the breach, and present a strong case to secure the compensation Company B deserves.

Case Study 2: Unfair Contract Terms

Individual X enters into a contract with Company Y for the purchase of a car. After encountering multiple issues with the vehicle, X discovers that the contract contains unfair terms that heavily favor Company Y.

1. Unfair Contract Terms: Any contract that contains terms that significantly imbalance the rights and obligations of the parties may be deemed unfair and unenforceable.

2. Consumer Protection: Individuals, especially consumers, are afforded protection under contract laws to prevent unfair practices by businesses.

At SQE Contract Law, we understand the importance of protecting your rights as a consumer. Our expert solicitors will review the contract and identify any unfair terms. We will guide Individual X through the process of challenging these terms and seeking appropriate remedies.

Case Study 3: Dispute Resolution

Parties A and B are involved in a contract dispute regarding the provision of services. Both parties are eager to resolve the matter expeditiously to avoid lengthy and costly litigation.

1. Alternative Dispute Resolution (ADR): ADR methods such as mediation or arbitration offer parties the opportunity to reach a mutually acceptable resolution without going to court.

2. Cost and Time Efficiency: ADR methods are often faster and more cost-effective than traditional litigation.

At SQE Contract Law, we advocate for alternative dispute resolution methods as a means of swift and efficient resolution. We will facilitate negotiations between Parties A and B, guiding them through the process of mediation or arbitration to achieve a mutually agreeable outcome.

Conclusion:

In the complex world of contract law, understanding real-world scenarios and their solutions is essential for safeguarding your legal rights and business interests. At SQE Contract Law, we are committed to providing expert advice and assistance in all aspects of contract law. Whether you are dealing with a breach of contract, unfair terms, or a contract dispute, our team of solicitors is equipped to help you navigate the legal landscape efficiently and effectively. Contact us today to ensure your contracts are solid and legally binding.

Remember, having a trusted legal partner by your side can make all the difference in preparing, executing, and resolving contract-related matters.

Contract Law SQE Exam Prep

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Contracts →

• 28 Apr 2022
• Research & Ideas

Can You Buy Creativity in the Gig Economy?

It's possible, but creators need more of a stake. A study by Feng Zhu of 10,000 novels in the Chinese e-book market reveals how tying pay to performance can lead to new ideas.

• 26 Jun 2020
• Working Paper Summaries

Weak Credit Covenants

Prior to the 2020 pandemic, the leveraged loan market experienced an unprecedented boom, which came hand in hand with significant changes in contracting terms. This study presents large-sample evidence of what constitutes contractual weakness from the creditors’ perspective.

• 13 May 2019

The Unexpected Way Whistleblowers Reduce Government Fraud

Even unfounded allegations by whistleblowers can force government contractors to renegotiate their terms, say Jonas Heese and Gerardo Perez Cavazos. Open for comment; 0 Comments.

• 23 Jan 2018

Transaction Costs and the Duration of Contracts

When buyers transact with sellers, they select not only whom to transact with but also for how long. This paper develops a model of optimal contract duration arising from underlying supply costs and transaction costs. The model allows for the quantification of transaction costs, which are often unobserved, and the impact of these costs on welfare.

• 20 Oct 2015

Internalizing Global Value Chains: A Firm-Level Analysis

Manufacturing activities that used to be performed in close proximity are increasingly fragmented across firms and countries. This paper provides strong evidence that considerations driven by contractual frictions critically shape firms' ownership decisions along their value chains.

• 27 Feb 2006

When Rights of First Refusal Are a Bad Deal

Contracts that include a right of first refusal usually benefit the holder of that right. But not always. New research by professor Alvin E. Roth and colleague Brit Grosskopf explains when it's wise to say no. Closed for comment; 0 Comments.

• 03 Mar 2003

Top Ten Legal Mistakes Made by Entrepreneurs

The life of a startup can be precarious, a wrong turn disastrous. Harvard Business School professor Constance Bagley discusses the most frequent legal flops made by entrepreneurs, everything from hiring the wrong lawyer to puffing up the business plan. Closed for comment; 0 Comments.

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7 Case Study 2: The Interpretation of Contracts

• Published: March 2013
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This chapter presents a case study of international arbitral decision-making in action on a discrete area of contract law. It examines the decisions of international commercial arbitrators when they are called upon to interpret a contract. The chapter begins by putting the issue of contractual interpretation into comparative context, first considering the opposing perspectives that underlie the different interpretive doctrines, then comparing the rules in some of the most commercially important common law and civil law jurisdictions and the major international contract law instruments. Next, it considers whether any general principles of evidence or private law apply to contractual interpretation in international arbitration. Finally, it assesses the published arbitral awards where the tribunal engaged in the interpretation of a contract. The available data suggest that, when it comes to deciding cases of suspension of performance, arbitrators tend to make decisions in a different way than the courts of any country, and to reach results that are more consistent with each other than with the provisions of any national law.

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The differences between a contract and an agreement

While a contract is undoubtedly a type of agreement, not all agreements constitute a legally binding contract. In order to form a contract, the above-stated elements must all be present in the document and its surrounding acknowledgments. Parties can agree to all sorts of things, but in order for that agreement to be enforceable by law, a very specific set of elements must be included. The legal concept of specific performance may come into play when addressing breaches of contract, and adherence to the statute of frauds is essential for certain types of agreements.

There are a number of different types of agreements commonly observed in day-to-day business activity. While not all agreements are contracts, some, though, do rise to that level. Thomson Reuters coverage of the Master Service Agreement (MSA) provides some helpful insights into one common agreement between vendors and clients. Understanding the dynamics of bargaining power is crucial for contracting parties to negotiate and establish fair and equitable agreements.

(MSAs) are broad, foundational contract arrangements outlining the scope of the relationship between two entities doing business with one another. Additionally, a companion component of an MSA is the Statement of Work (SoW) , which lays out highly specific expectations and timelines with respect to a given project.

The SoW is a powerful tool for businesses, municipalities, and individuals looking to facilitate a working relationship with one another. Oftentimes, an SoW is deployed when two independent parties desire to work together toward the mutual completion of a work project or goal. The document, which can vary in size and complexity, provides important details with respect to the actual tasks needed to reach that mutual goal.

Further still, an “indemnity agreement” is another important legal pact between parties that often plays an important role in personal and business dealings. An indemnity agreement is “an arrangement whereby one party agrees to pay the other party for any damages regardless of who is at fault.” This is similar to a “hold harmless agreement,” which ensures one party will not be held for tort liability “arising out of the indemnitor’s negligent act or omission.”

What constitutes a breach of contract?

A counteroffer during negotiations may lead to modifications in the terms, and these interactions are integral to the framework of civil law. While form contracts offer standardized terms, parties are obligated to act in good faith during negotiations and throughout the life of the contract. Sometimes, obligations arise from an implied contract, emphasizing the dynamic nature of the law of contracts.

Unfortunately, sometimes parties dispute the terms of a written or verbal contract, or even whether or not a valid contract existed in the first place. Parties frequently accuse one another of misrepresentation with respect to their intentions, inadequate performance, or even outright lying. Oftentimes, these disagreements require some form of arbitration or adjudication.

Breach of contract is one common form of disagreement over a contract agreement. A breach of contract is “a failure, without legal excuse, to perform any promise that forms all or part of the contract. This includes failure to perform in a manner that meets the standards of the industry or the requirements of any express warranty or implied warranty, including the implied warranty of merchantability.”

When deciding a breach of contract case, a judge must consider several important questions, notes the educational center. First, a judge must determine if a contract did, in fact, exist. Once that determination is made, a judge will then consider what the requirements of that contract were, if it was at any point modified, and then if a breach occurred.

Then, a judge must decide if that breach was “material” to the terms of the contract and what potential legal defenses might apply to the breaching party. Finally, a judge would have to determine what damages took place as a result of the breach.

A breach of contract can be material or minor. The parties’ obligations and remedies depend on which type of breach occurred. A breach is material if, as a result of the breaching party’s failure to perform some aspect of the contract, the other party receives something substantially different from what the contract specified.

Final words

The understanding of contracts is embedded in the fabric of the broader legal system, influencing interactions at personal and professional levels. Legal contracts are important to understand as they are the foundation of a company or party’s relationship with another company, its clients, or even its employees. Knowing what contracts are, how they are crafted, and what their roles are in the legal ecosystem will help law firms and businesses know how to effectively manage them.

To that end, those in need of such agreements can jumpstart their drafting process with Practical Law’s up-to-date documents and clauses filled with drafting annotations, notes, and negotiation tips, provided in the recommended legal language of expert attorney-editors.

Practical Law is a phenomenal resource for drafting all your contracts, agreements, and clauses, and it has helped lawyers and attorneys from remarkably diverse backgrounds do just that. Standard templates provide starting points to set up these documents, and those templates are coupled with insights from experts who have years of experience in their practice areas.

Check out how your law firm can benefit from Practical Law to draft all your contracts, agreements, and clauses .

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Breach of Contract Case Study from TonaLaw

TonaLaw helps business parties reach amicable, confidential settlements, before trial.

Is someone you worked with in “Breach of contract”?  This is is a  legal   cause of action  and a type of  civil wrong , in which a  binding agreement  or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party’s performance. Breach of Contract occurs when a party to a contract fails to fulfill his or her obligation as described in the contract or communicates an intent to fail the obligation or otherwise appears not to be able to perform his or her obligation under the contract.

CASE STUDIES:

1: Represented Defendant in a Suit for Breach of Contract on Promissory Note 

TonaLaw represented a not-for-profit charitable organization being sued by a former member on a breach of a promissory note. It was a frivolous action as the defendant was not in breach of the promissory note and it was paid in full. The suit was for approximately half a million dollars.

After two years of extensive pretrial motions and negotiations, Tonalaw settled the case for our client for $7,500, when the client was being sued for $1,000,000.

2: Represented Plaintiff in a Suit for Breach of Contract on a Promissory Note 

We represented the plaintiff’s estate in this action where the decedent lent approximately $125,000.00 to the defendant. When the plaintiff died, the defendant had not repaid the debt, resulting in a breach of contract.

TonaLaw filed a summary judgment motion in order to have the judge rule that the defendant was liable for the debt, and the motion was granted. The only unresolved issue was how much the defendant owed. TonaLaw negotiated a confidential settlement between the two parties and the case did not have to go to trial.

3: Subcontractor Vs. General Contractor

TonaLaw represented the plaintiff, a subcontractor, in an action against the defendant, who was a general contractor. The defendant subcontracted close to $139,000.00 worth of work to the plaintiff but defaulted on approximately $60,000.00 worth of payments. TonaLaw helped the parties reach an amicable, confidential settlement before trial.

“Tom has been my litigation lawyer for my construction business since 2009 when he took on a certification appeal that was difficult, tedious, and involved countless paperwork. He successfully won the certification for me and I have kept him on ever since. He has assisted in money collection and contract negotiations with positive results . . . Most recently he aided my company in obta ining the proper representation in an intricate workers comp case we became involved in and was the motivating factor in putting together the legal defense to mitigate culpability and costs. I trust Tom implicitly for both my business and personal needs. He is always available for help, advice, and is genuinely invested in who he represents not just as a client but as a person. I commend his staff as well for always being friendly, courteous, and again genuine with what they do. I would highly recommend him!!!!” – Diana A.

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Contract Law

Notes, cases, and materials on contract law, topic notes.

Past Papers

Back to Subjects | Back to Law

Introduction to contract law

Forming the agreement

Certainty and clarity

Intention to create legal relations

Consideration

The doctrine of promissory estoppel

Privity of contract

Terms of a contract

Exclusion clauses

Duress, undue influence & unconscionable bargains

Misrepresentation

Frustration

General cases

Past Papers & Questions

1. There is in my view a real danger that if a general principle of good faith were established it would be invoked as often to undermine as to support the terms in which the parties have reached agreement’, per LJ Moore-Bick in MSC Mediterranean Shipping Co v Cottonex Anstalt [2016] EWCA Civ 789, at [45]. Critically discuss

2. ‘The foundation of consideration is unconscionability and promissory/proprietary estoppel is the best example of this. It would be better to just call the beast by its name and allow the courts to assess whether the deal was unconscionable or not.’ Critically discuss.

3. “The English courts’ approach to the doctrine of consideration is artificial since it has very little to do with the parties’ agreement. A change in the law is imperative to ensure clarity in the law and to stop a slavish adherence to the neo-classical theory of contract law.” Critically discuss.

4. To what extent is “business common sense” the fundamental approach of the courts in resolving ambiguities and ascertaining the meaning of contractual terms and statements?

5. Critically discuss the impact of the Consumer Rights Act 2015 on the regulation of ‘unfair terms’ in contracts.

The University of Retexe owns a painting titled ‘the scales out of balance’ which was given to it by a grateful graduate in 1955. The University has decided that nobody really looks at the piece and therefore wants to sell it. They contact a former student, Stefan, by letter:

‘We are considering selling the painting you knew and loved when you were a student here, ‘the scales out of balance’, as long as you are willing to pay £2m for it. The sale must be within the next two months. As you will remember it was included in the BBC television series ‘the art of Hogarth’ and they considered it to be one of his best pieces. Would you be interested in purchasing this Hogarth?’

Stefan immediately replies that the gallery he owns would be happy to pay that price for the Hogarth.

The University does not reply but the accountant removes the Hogarth from the list of art pieces to be insured. Shortly after Stefan succeeds in selling the painting on to an American art gallery for £5m. He contacts the University and leaves a message:

‘I hope you don’t mind but I have managed to sell the painting to a fantastic gallery.’ A few days later the university representative, Tammy, calls Stefan back and comments that she is glad they have found a good home for the painting and asks when Stefan would like the painting to be delivered.

Stefan is about to call back when he finds out from another dealer that the Hogarth, due to the time when it was donated, must have been a forgery. The discovery was made by accident last week when a gallery moved other Hogarths to a new building.

Advise Stefan, who does not want the painting anymore.

Ugo, an architect, earns a little extra money as a self-employed author of fiction. He has previously used an accountant in his town who has recently retired.

For this year’s tax return, due in January 2018, Ugo decides to use Valentina’s online tax return service. The website offers ‘a complete preparation and filing service for your income tax’. The website offers ‘complete peace of mind’. The first page of the website asks for the income. The page states that the customer ‘must submit all statements by post’ and, provided that she pays the £200 fee, they will then send her the completed tax return back.

On the very first page of the website there is a button titled ‘what we promise’. If the customer clicks on this it takes the customer to another website with terms and conditions, which include the following:

• What we promise: We undertake to calculate the tax you must pay from the figures you give us when you tell us your income. We take no responsibility for checking that you have entered the amounts correctly
• Liability. We are not responsible for any penalty imposed on you because your income is incorrectly stated; or because your return is not submitted on time unless we are shown to have acted intentionally or with gross negligence.

This button only appears on the first page. Ugo does not see or read the terms and conditions before sending in the requested information. Ugo does not notice that he has entered the amount he has earned as £2,500 rather than £25,000. The correct amount is clearly visible from the statements but Valentina does not notice the mistake. She sends the tax return back to Ugo, who signs it without checking.

The tax authorities notice the mistake and fine Ugo a total of £500.

Advise Ugo of any rights he may have against Valentina.

Trista and Kevin have been business partners of a local garage since 2010 valued at about £200,000, with Trista owning a 25% share in the business (worth approximately £50,000). In March 2015, Trista approached Kevin about the possibility of buying her out of the business to enable Trista sort out her own personal problems. When Kevin refused, Trista threatened to do such shoddy work at the garage that the business would lose clients and eventually become financially unviable.

Initially, Kevin refused Trista’s proposal and told her that, while sympathetic with her plight, he just did not have access to the necessary funds. During the next several months, Trista did as she threatened and her work was so slow and sloppy that the business began to lose customers.

Fearing that he would lose the business completely, Kevin approached his new husband, Gamu, about the possibly of putting up their jointly-owned £100,000 home as security on a £50,000 bank loan, so that Kevin could buy Trista out of the business. Kevin told Gamu that he felt he had no choice but to get the loan if his business were to survive. Gamu agreed and signed the necessary documents at the bank in the presence of Kevin. Kevin, in turn, entered into contract with Trista in October 2015 to buy her out of the business for £50,000.

By February 2016, as a result of the damage to the business’ reputation after Trista’s behaviour, Kevin had lost customers and was struggling to pay his bills, including the payments on the bank loan. In May 2016, Kevin was informed that the bank now intended to take possession of his and Gamu’s house.

Advise Kevin and Gamu on whether they have any rights against Trista and the bank.

Phoebe, who won £1 million from a lottery, decided to take her parents, Monica and Chandler, and her best friends, Jahangir and Ramona, on “luxury cruising” to thank them for being there for her. Phoebe remembered seeing the following Facebook advertisement by Superb Ltd:

“Get the experience of a lifetime via our two weeks cruise; Our luxury ship will be stopping at exotic places; Enjoy five-star hotels; Fine dining all the time; Our crew and passengers are special and the nicest; £1000 per person; Discounts for groups of five or more.”

Phoebe phoned Superb’s office and asked whether “that Facebook deal is still on” and got a confirmation. She later went to Superb’s office and signed a contract after paying a discounted price of £4000 for five persons.

Phoebe, her parents and her friends left the ship after two days due to the following facts:

• The ship, Konkordium, was an ugly-looking converted fishing boat lacking some basic facilities normally seen in cruise ships. Konkordium was only going round the southeast coast of England.
• Fine dining was not available on Konkordium and passengers were often given sandwiches. The food made Phoebe’s parents quite ill and Phoebe, Jahangir and Ramona suffered varying levels of discomfort from the food.
• Konkordium’s crew were swearing and shouting at passengers at will. One pushed Jahangir for no reason.
• Other passengers on Konkordium were groups of students who were always drunk, swearing, shouting and playing loud music. Some students whistled whenever they saw Ramona. The students paid £100 per person and £80 for groups of five.

Advise Phoebe, Monica, Chandler, Jahangir and Ramona on whether they have any legal claims in contract law.

Tara wanted to extend her house. Accordingly she engaged an architect to draw up some plans. Subsequently she placed a notice in her local newspaper requesting tenders in respect of the work to be undertaken. The notice stated that the deadline for the submission of tenders was noon on 4 March and the contract would be awarded to the person submitting the lowest tender. The notice also stated that further details, including plans, could be obtained from Tara at an address provided but did not state the method for submitting tenders.

Eoin, Belinda, Siobhan and David all requested further information and subsequently submitted tenders. Eoin submitted a tender of £20,000 by e-mail. Belinda submitted a tender of £15,000 by post. Siobhan submitted a tender of “£100 lower than any other tender received” by post. David submitted a tender of £10,000 by e-mail. Tara decided not to accept David’s tender as she had heard worrying rumours about the standard of David’s work. Instead she decided to accept Siobhan’s tender. David and Belinda are very angry about this and are threatening legal action. Moreover it appears that Tara did not consider Eoin’s tender at all as there was a problem with her computer server.

Advise the parties.

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Learning from success: contract management case studies, introduction.

Unlocking the secrets to success can be a challenging feat, especially in the complex world of contract management. With countless variables at play and high stakes involved, it’s no wonder that many organizations struggle to navigate this intricate landscape. But fear not! In this blog post, we will delve into three captivating case studies that showcase how companies have triumphed in their contract management endeavors.

From Company A’s strategic approach to Company B’s innovative solutions, and Company C’s meticulous attention to detail, these real-life examples offer valuable insights into what makes for effective contract management practices. So join us as we unravel these stories of triumph and uncover the key lessons they hold. Whether you’re a seasoned professional or just dipping your toes into the realm of contracts , there are invaluable takeaways waiting for you in each case study. Let’s dive right in!

Case Study #1: Company A

Company A, a global technology firm, faced numerous challenges in managing their contracts efficiently . With a vast network of suppliers and customers spread across different regions, they struggled to keep track of contract deadlines and renewal dates. This resulted in missed opportunities and potential legal risks .

To address these issues, Company A implemented a comprehensive contract management system . They automated the process by using contract management software that streamlined document storage, centralized data access, and provided real-time notifications for upcoming milestones.

Additionally, Company A established clear communication channels between the legal team and other departments involved in contract negotiations . This collaboration improved efficiency and reduced delays caused by miscommunication or lack of clarity.

By implementing an effective contract management system , Company A experienced significant improvements in their overall operations. They were able to negotiate better terms with suppliers resulting in cost savings and more favorable business agreements .

Moreover, the risk of non-compliance decreased as critical deadlines were never missed again. The company’s reputation also benefited from improved transparency when dealing with customers.

This case study highlights how investing in proper contract management tools can enhance operational efficiency while reducing risks for businesses like Company A. It serves as an important lesson on the importance of proactive measures to streamline contractual processes within organizations.

Case Study #2: Company B

Company B, a leading tech firm in the software industry , faced significant challenges in managing their contracts. With a rapidly growing customer base and expanding product offerings, they struggled to keep track of contract milestones and renewal dates.

To address this issue, Company B implemented a robust contract management system that automated key processes such as contract creation, approval workflows, and document storage. This allowed them to streamline their entire contracting process and ensure compliance with contractual obligations.

Furthermore, Company B leveraged data analytics within their contract management system to gain valuable insights into customer behavior and preferences. By analyzing patterns in contract terms and negotiations across different clients, they were able to tailor their offerings more effectively and increase customer satisfaction.

The implementation of the new contract management system not only improved efficiency but also reduced risks associated with non-compliance or missed deadlines. The centralized repository of contracts enabled quick access to critical information when needed for audits or legal disputes.

By investing in an advanced contract management solution tailored to their needs, Company B was able to overcome their challenges effectively. They achieved greater control over their contracts while leveraging data-driven insights for strategic decision-making.

Case Study #3: Company C

Company C, a global manufacturing firm, faced significant challenges in their contract management processes . With contracts scattered across various departments and locations, they struggled to keep track of key dates, terms, and obligations. This led to missed opportunities and increased costs due to ineffective negotiations.

To address these issues, Company C implemented a comprehensive contract management software solution . The system allowed them to centralize all contracts in one secure repository accessible by authorized personnel. It provided automated alerts for important milestones such as renewal dates or termination clauses .

Additionally, the software enabled efficient collaboration among team members involved in contract creation and approval. By streamlining workflows and reducing manual errors, Company C significantly improved its overall contract management efficiency .

Moreover, the data analytics capabilities of the software allowed Company C to gain valuable insights into their contractual relationships with suppliers and vendors. They were able to identify areas of risk or non-compliance early on and take proactive measures.

In conclusion (not conclusive), Company C’s case study highlights the importance of implementing an effective contract management system tailored to specific organizational needs. By leveraging technology solutions like intelligent software platforms that provide centralized access, automation features, collaboration tools, and advanced analytics abilities – businesses can streamline their processes while minimizing risks associated with inefficient contract management practices.

What can we learn from these case studies?

What can we learn from these case studies? Let’s dive into the valuable insights that Company A, Company B, and Company C have provided through their contract management experiences.

In the case of Company A, they implemented a centralized contract repository system that allowed for easy access and retrieval of contracts. This led to improved efficiency in contract management processes and reduced the risk of misplaced or lost contracts. The key takeaway here is the importance of having a well-organized and accessible repository for contracts.

Moving on to Case Study #2 with Company B, they successfully integrated an automated contract lifecycle management software into their operations. This automation streamlined their entire contracting process – from drafting to approval to execution. The lesson learned here is the significant impact technology can have on enhancing contract management workflows .

Now let’s take a look at Case Study #3 featuring Company C. They recognized the criticality of effective communication throughout the contracting process . By implementing collaborative tools and establishing clear lines of communication between stakeholders, they were able to minimize misunderstandings and delays. This highlights how open communication plays a crucial role in successful contract management.

These case studies teach us some important lessons: organizing contracts effectively through centralized repositories, leveraging technology to automate processes , and prioritizing transparent communication among all parties involved in contract management.

By adopting these best practices gleaned from real-world examples like these companies’, organizations can enhance their own approaches to managing contracts efficiently and minimizing risks associated with mismanagement or lack thereof.

Conclusion:

From the case studies discussed in this article, it is clear that effective contract management can have a significant impact on the success of a company. Company A demonstrated how streamlining their contract management process led to improved efficiency and cost savings. Company B showed us the importance of having a centralized system for managing contracts , which not only enhanced collaboration but also reduced risks. Company C highlighted the value of proactive contract monitoring and compliance measures to prevent legal disputes.

These case studies offer valuable insights into best practices for contract management. It is evident that investing time and resources into developing robust systems and processes can yield substantial benefits for businesses of all sizes.

By learning from these success stories, companies can enhance their own contract management strategies and improve overall operations. From implementing digital solutions to fostering cross-functional collaboration, there are various approaches companies can take to optimize their contract management efforts.

Each organization will need to tailor its approach based on its unique needs and objectives. However, by studying successful examples like those presented here, businesses can gain inspiration and guidance as they navigate their own journey towards effective contract management .

So whether you’re a small startup or an established enterprise, analyzing these real-life scenarios will undoubtedly provide valuable lessons that you can apply in your own business context. Embracing innovative technologies, establishing clear communication channels with stakeholders involved in the contracting process, staying vigilant about risk mitigation – these are just some of the strategies that emerging leaders in successful organizations employ when it comes to managing contracts effectively.

In conclusion (without saying “in conclusion”), by integrating key learnings from these case studies into your approach towards contract management, you’ll be well-positioned to maximize opportunities while minimizing risks associated with contractual agreements – ultimately driving growth and ensuring long-term success for your organization.

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Business Law Case Studies with Solutions

• Post author: myspeakhr
• Post category: Case Study
• Reading time: 5 mins read

Discussed here is the Business Law Case Studies with Solutions. Business Law is also known as Legal Aspects of Business, Commercial Law etc. Here we have given short case studies along with solutions in business law. These simple case law in commercial law contains cases related to Contract Act 1872, Sale of goods Act and Consumer protection Act with solutions. All the 3 Acts discussed here is majorly used in business transactions. These short case studies on commercial law with answers will be helpful for students of MBA, BBA, B.com and Law. These case studies and solutions are explained in very simple words without much difficult legal terms for the benefit of the students.

Below is the Business Law Case Studies with Solutions.

I. Indian Contract Act Case Studies

1. case study on basic contract act.

“A gives an offer in the newspaper for the sale of his HP laptop for Rs. 15000. He also stated that Those who are willing to purchase can send a message to his mobile.”” In this simple case consider the following situation and discuss the solution:

a) B was interested to purchase the laptop and sent a message stating that he wish to purchase for 12000. Was it an acceptance is given by B-

No it was not an acceptance It can be termed as counter offer. If feasible A has to give acceptance.

b) B was interested to purchase the same but he asked C to message on behalf of B. and C messaged as follows

“My friend B is interested to purchase your laptop for 15000”  . Here is this a valid Acceptance? is A binded by the acceptance.

No this is not a valid acceptance. The acceptance needs to be given by the accept-or itself. Hence A is not binded by the action of C.

c)  B who is much interested in purchasing the laptop had called Mr.A and given the acceptance through his phone. Is A obliged for acceptance given by B.

The acceptance must the given by the mode prescribed by the offer-or only. Hence in the given case the acceptance given by B through telephone is not an acceptance.

2. Case study on Valid Contract

Mr. X invited Mr. Y his business partner for X’s sisters marriage. Y accepted the invitation in this ground X booked a table in a costly hotel where the marriage takes place. Due to some reason Y could not attend the function. What type of contact is this. Is this a valid contract. Justify your answer.

This is not a valid contract on the following basis:

a. This is a social agreement. The agreement is not created with an intention to create legal relationship rather to create a social relationship.

b. There is no consideration involved in the contract hence it is not a valid contract.

II. Consumer Protection Act Case Studies

3. case study on who is a consumer.

a. Mr. A bought a printer from an electronics store for using it at home. The TV was defective. Is Mr. A a consumer?

Yes Mr. A is a consumer as he purchased the printer for his own use.

b. Balu is a distributor for computer accessories. He bought 100 pen-drives for selling to other computer vendors. Is Balu a consumer?

Balu is not a consumer as he has obtained accessories for resale.

4. Case study on Restrictive and Unfair trade practices

Mr. X went to a electronic shop to purchase a TV for his newly built house. He asked the information about Samsung 40 inches LED TV to the shop keeper. The shop keeper being a dealer of other brands misguide the customer stating that Samsung had planned to stop the production of 40 Inch LED TV’s. The shopkeeper made the customer believed the same and advice him to purchase some other brand.

The act of Shop keeper is Restrictive trade practice or Unfair trade practices?

The act of shopkeeper is a unfair trade practice as he had mislead the customer with a motive to increase his sale.

III. Sale of Goods Act 1930 Case studies

5. case study on sale or agreement to sell.

On 1st March 2017, Alex agreed to sell his car to Beny for Rs. 80,000. It was agreed between themselves that the ownership of the car will transfer to B on 31st March 2017. when the car is gets registered in Beny`s name. Justify whether it is sale or agreement to sell.

It is an agreement to sell and it will become sale on 31st March when the car is registered in the name of Beny.

6. Case study on Warranty

Anay purchased a second hand typewriter from Balu. Anay used it for sometime and also spend some money on its repairs. The typewriter turned out to be stolen one and as such Anay had to return it to the true owner chand. Is it a breach of Warranty or not. What remedy will Anay get?.

It is a breach of warranty. It is a implied warranty as to quite possession. It was held that Anay could recover damages from Balu amounting to the price paid and the cost of repair.

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Business law assignment on Law of Contract (Case Solution)

Case solution for law of contract in business law and ethics.

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Case Study and Solution For The Law of Contracts

It is important to understand the Law of Contracts in order to perform an effective solution. Most cases can be solved using this law. However, there are some situations that are beyond the reach of the law of contracts. There are also cases where the Law of Contracts does not apply, and those are some of the best times to avoid these situations.

A case study and solution is all about applying the Law of Contracts when you are trying to solve a problem. When you are using this solution, you should consider all of the information presented here.

First, there is the Contract Law definition. This is the part of the Law of Contracts that relates to the law that governs the contract. It is important to understand what the term “law” means in this situation.

The Contract Law definition is a series of three parts. These parts are the original contract, the acceptance of the contract, and the judicial enforcement of the contract. These three parts are essential to knowing the definition of the Law of Contracts.

The acceptance of the contract is the acceptance of the contract by one party. When a contract is accepted by one party, that is the acceptance of the contract by the other party.

The judicial enforcement of the contract is the term used for the judicial enforcement of the contract. Thisis a phrase that is defined as “a judicial process that is applied to determine the validity of a contract and to decide whether or not the contract is enforceable.” The judicial process that is applied depends on the jurisdiction in which the contract was created.

There are two types of judicial processes that are used to determine the validity of a contract. One of these processes is known as the decision-making process, and the other process is known as the objective process.

The decision-making process is a process that is followed in all states in order to determine the validity of a contract. This process starts when the other party files a lawsuit against the plaintiff. Once this process is followed, the decision-making process is completed and the lawsuit is dismissed.

The subjective process, on the other hand, is a process that is used in states that have decided that the contract is enforceable. This process, however, begins after the decision-making process has been completed. The process that is used varies from state to state, so it is important to understand what the process is before you go forward with the process.

The objective process is the process that is used in all states. This process begins with the decision-making process being completed and the lawsuit being dismissed. After this process is completed, the suit is dismissed, and the plaintiff is released from liability.

In a case study and solution of this type, you will want to ask yourself what is the Law of Contracts? It is very important to understand this in order to avoid problems, and it will help you in determining how to solve the problem.

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Law Of Contract

• Harvard Case Studies

Harvard Business Case Studies Solutions – Assignment Help

In most courses studied at Harvard Business schools, students are provided with a case study. Major HBR cases concerns on a whole industry, a whole organization or some part of organization; profitable or non-profitable organizations. Student’s role is to analyze the case and diagnose the situation, identify the problem and then give appropriate recommendations and steps to be taken.

To make a detailed case analysis, student should follow these steps:

STEP 1: Reading Up Harvard Case Study Method Guide:

Case study method guide is provided to students which determine the aspects of problem needed to be considered while analyzing a case study. It is very important to have a thorough reading and understanding of guidelines provided. However, poor guide reading will lead to misunderstanding of case and failure of analyses. It is recommended to read guidelines before and after reading the case to understand what is asked and how the questions are to be answered. Therefore, in-depth understanding f case guidelines is very important.

Harvard Case Study Solutions

porter’s five forces model

STEP 2: Reading The Law Of Contract Harvard Case Study:

To have a complete understanding of the case, one should focus on case reading. It is said that case should be read two times. Initially, fast reading without taking notes and underlines should be done. Initial reading is to get a rough idea of what information is provided for the analyses. Then, a very careful reading should be done at second time reading of the case. This time, highlighting the important point and mark the necessary information provided in the case. In addition, the quantitative data in case, and its relations with other quantitative or qualitative variables should be given more importance. Also, manipulating different data and combining with other information available will give a new insight. However, all of the information provided is not reliable and relevant.

When having a fast reading, following points should be noted:

• Nature of organization
• Nature if industry in which organization operates.
• External environment that is effecting organization
• Problems being faced by management
• Identification of communication strategies.
• Any relevant strategy that can be added.
• Control and out-of-control situations.

When reading the case for second time, following points should be considered:

• Decisions needed to be made and the responsible Person to make decision.
• Objectives of the organization and key players in this case.
• The compatibility of objectives. if not, their reconciliations and necessary redefinition.
• Sources and constraints of organization from meeting its objectives.

After reading the case and guidelines thoroughly, reader should go forward and start the analyses of the case.

STEP 3: Doing The Case Analysis Of Law Of Contract:

To make an appropriate case analyses, firstly, reader should mark the important problems that are happening in the organization. There may be multiple problems that can be faced by any organization. Secondly, after identifying problems in the company, identify the most concerned and important problem that needed to be focused.

Firstly, the introduction is written. After having a clear idea of what is defined in the case, we deliver it to the reader. It is better to start the introduction from any historical or social context. The challenging diagnosis for Law Of Contract and the management of information is needed to be provided. However, introduction should not be longer than 6-7 lines in a paragraph. As the most important objective is to convey the most important message for to the reader.

After introduction, problem statement is defined. In the problem statement, the company’s most important problem and constraints to solve these problems should be define clearly. However, the problem should be concisely define in no more than a paragraph. After defining the problems and constraints, analysis of the case study is begin.

STEP 4: SWOT Analysis of the Law Of Contract HBR Case Solution:

SWOT analysis helps the business to identify its strengths and weaknesses, as well as understanding of opportunity that can be availed and the threat that the company is facing. SWOT for Law Of Contract is a powerful tool of analysis as it provide a thought to uncover and exploit the opportunities that can be used to increase and enhance company’s operations. In addition, it also identifies the weaknesses of the organization that will help to be eliminated and manage the threats that would catch the attention of the management.

This strategy helps the company to make any strategy that would differentiate the company from competitors, so that the organization can compete successfully in the industry. The strengths and weaknesses are obtained from internal organization. Whereas, the opportunities and threats are generally related from external environment of organization. Moreover, it is also called Internal-External Analysis.

In the strengths, management should identify the following points exists in the organization:

• Advantages of the organization
• Activities of the company better than competitors.
• Unique resources and low cost resources company have.
• Activities and resources market sees as the company’s strength.
• Unique selling proposition of the company.

WEAKNESSES:

• Improvement that could be done.
• Activities that can be avoided for Law Of Contract.
• Activities that can be determined as your weakness in the market.
• Factors that can reduce the sales.
• Competitor’s activities that can be seen as your weakness.

OPPORTUNITIES:

• Good opportunities that can be spotted.
• Interesting trends of industry.
• Change in technology and market strategies
• Government policy changes that is related to the company’s field
• Changes in social patterns and lifestyles.
• Local events.

Following points can be identified as a threat to company:

• Company’s facing obstacles.
• Activities of competitors.
• Product and services quality standards
• Threat from changing technologies
• Financial/cash flow problems
• Weakness that threaten the business.

Following points should be considered when applying SWOT to the analysis:

• Precise and verifiable phrases should be sued.
• Prioritize the points under each head, so that management can identify which step has to be taken first.
• Apply the analyses at proposed level. Clear yourself first that on what basis you have to apply SWOT matrix.
• Make sure that points identified should carry itself with strategy formulation process.
• Use particular terms (like USP, Core Competencies Analyses etc.) to get a comprehensive picture of analyses.

STEP 5: PESTEL/ PEST Analysis of Law Of Contract Case Solution:

• Pest analysis

Pest analyses is a widely used tool to analyze the Political, Economic, Socio-cultural, Technological, Environmental and legal situations which can provide great and new opportunities to the company as well as these factors can also threat the company, to be dangerous in future.

Pest analysis is very important and informative.  It is used for the purpose of identifying business opportunities and advance threat warning. Moreover, it also helps to the extent to which change is useful for the company and also guide the direction for the change. In addition, it also helps to avoid activities and actions that will be harmful for the company in future, including projects and strategies.

To analyze the business objective and its opportunities and threats, following steps should be followed:

• Brainstorm and assumption the changes that should be made to organization. Answer the necessary questions that are related to specific needs of organization
• Analyze the opportunities that would be happen due to the change.
• Analyze the threats and issues that would be caused due to change.
• Perform cost benefit analyses and take the appropriate action.

PEST FACTORS:

• Next political elections and changes that will happen in the country due to these elections
• Strong and powerful political person, his point of view on business policies and their effect on the organization.
• Strength of property rights and law rules. And its ratio with corruption and organized crimes. Changes in these situation and its effects.
• Change in Legislation and taxation effects on the company
• Trend of regulations and deregulations. Effects of change in business regulations
• Timescale of legislative change.
• Other political factors likely to change for Law Of Contract.

ECONOMICAL:

• Position and current economy trend i.e. growing, stagnant or declining.
• Exchange rates fluctuations and its relation with company.
• Change in Level of customer’s disposable income and its effect.
• Fluctuation in unemployment rate and its effect on hiring of skilled employees
• Access to credit and loans. And its effects on company
• Effect of globalization on economic environment
• Considerations on other economic factors

SOCIO-CULTURAL:

• Change in population growth rate and age factors, and its impacts on organization.
• Effect on organization due to Change in attitudes and generational shifts.
• Standards of health, education and social mobility levels. Its changes and effects on company.
• Employment patterns, job market trend and attitude towards work according to different age groups.

case study solutions

• Social attitudes and social trends, change in socio culture an dits effects.
• Religious believers and life styles and its effects on organization
• Other socio culture factors and its impacts.

TECHNOLOGICAL:

• Any new technology that company is using
• Any new technology in market that could affect the work, organization or industry
• Access of competitors to the new technologies and its impact on their product development/better services.
• Research areas of government and education institutes in which the company can make any efforts
• Changes in infra-structure and its effects on work flow
• Existing technology that can facilitate the company
• Other technological factors and their impacts on company and industry

These headings and analyses would help the company to consider these factors and make a “big picture” of company’s characteristics. This will help the manager to take the decision and drawing conclusion about the forces that would create a big impact on company and its resources.

STEP 6: Porter’s Five Forces/ Strategic Analysis Of The Law Of Contract Case Study:

To analyze the structure of a company and its corporate strategy, Porter’s five forces model is used. In this model, five forces have been identified which play an important part in shaping the market and industry. These forces are used to measure competition intensity and profitability of an industry and market.

porter’s five forces model

These forces refers to micro environment and the company ability to serve its customers and make a profit. These five forces includes three forces from horizontal competition and two forces from vertical competition. The five forces are discussed below:

• THREAT OF NEW ENTRANTS:
• as the industry have high profits, many new entrants will try to enter into the market. However, the new entrants will eventually cause decrease in overall industry profits. Therefore, it is necessary to block the new entrants in the industry. following factors is describing the level of threat to new entrants:
• Barriers to entry that includes copy rights and patents.
• High capital requirement
• Government restricted policies
• Switching cost
• Access to suppliers and distributions
• Customer loyalty to established brands.
• THREAT OF SUBSTITUTES:
• this describes the threat to company. If the goods and services are not up to the standard, consumers can use substitutes and alternatives that do not need any extra effort and do not make a major difference. For example, using Aquafina in substitution of tap water, Pepsi in alternative of Coca Cola. The potential factors that made customer shift to substitutes are as follows:
• Price performance of substitute
• Switching costs of buyer
• Products substitute available in the market
• Reduction of quality
• Close substitution are available
• DEGREE OF INDUSTRY RIVALRY:
• the lesser money and resources are required to enter into any industry, the higher there will be new competitors and be an effective competitor. It will also weaken the company’s position. Following are the potential factors that will influence the company’s competition:
• Competitive advantage
• Continuous innovation
• Sustainable position in competitive advantage
• Level of advertising
• Competitive strategy
• BARGAINING POWER OF BUYERS:
• it deals with the ability of customers to take down the prices. It mainly consists the importance of a customer and the level of cost if a customer will switch from one product to another. The buyer power is high if there are too many alternatives available. And the buyer power is low if there are lesser options of alternatives and switching. Following factors will influence the buying power of customers:
• Bargaining leverage
• Switching cost of a buyer
• Buyer price sensitivity
• Competitive advantage of company’s product
• BARGAINING POWER OF SUPPLIERS:
• this refers to the supplier’s ability of increasing and decreasing prices. If there are few alternatives o supplier available, this will threat the company and it would have to purchase its raw material in supplier’s terms. However, if there are many suppliers alternative, suppliers have low bargaining power and company do not have to face high switching cost. The potential factors that effects bargaining power of suppliers are the following:
• Input differentiation
• Impact of cost on differentiation
• Strength of distribution centers
• Input substitute’s availability.

STEP 7: VRIO Analysis of Law Of Contract:

Vrio analysis for Law Of Contract case study identified the four main attributes which helps the organization to gain a competitive advantages. The author of this theory suggests that firm must be valuable, rare, imperfectly imitable and perfectly non sustainable. Therefore there must be some resources and capabilities in an organization that can facilitate the competitive advantage to company. The four components of VRIO analysis are described below: VALUABLE: the company must have some resources or strategies that can exploit opportunities and defend the company from major threats. If the company holds some value then answer is yes. Resources are also valuable if they provide customer satisfaction and increase customer value. This value may create by increasing differentiation in existing product or decrease its price. Is these conditions are not met, company may lead to competitive disadvantage. Therefore, it is necessary to continually review the Law Of Contract company’s activities and resources values. RARE: the resources of the Law Of Contract company that are not used by any other company are known as rare. Rare and valuable resources grant much competitive advantages to the firm. However, when more than one few companies uses the same resources and provide competitive parity are also known as rare resources. Even, the competitive parity is not desired position, but the company should not lose its valuable resources, even they are common. COSTLY TO IMITATE: the resources are costly to imitate, if other organizations cannot imitate it. However, imitation is done in two ways. One is duplicating that is direct imitation and the other one is substituting that is indirect imitation. Any firm who has valuable and rare resources, and these resources are costly to imitate, have achieved their competitive advantage. However, resources should also be perfectly non sustainable. The reasons that resource imitation is costly are historical conditions, casual ambiguity and social complexity. ORGANIZED TO CAPTURE VALUE: resources, itself, cannot provide advantages to organization until it is organized and exploit to do so. A firm (like Law Of Contract)  must organize its management systems, processes, policies and strategies to fully utilize the resource’s potential to be valuable, rare and costly to imitate.

STEP 8: Generating Alternatives For Law Of Contract Case Solution:

After completing the analyses of the company, its opportunities and threats, it is important to generate a solution of the problem and the alternatives a company can apply in order to solve its problems. To generate the alternative of problem, following things must to be kept in mind:

• Realistic solution should be identified that can be operated in the company, with all its constraints and opportunities.
• as the problem and its solution cannot occur at the same time, it should be described as mutually exclusive
• it is not possible for a company to not to take any action, therefore, the alternative of doing nothing is not viable.
• Student should provide more than one decent solution. Providing two undesirable alternatives to make the other one attractive is not acceptable.

Once the alternatives have been generated, student should evaluate the options and select the appropriate and viable solution for the company.

STEP 9: Selection Of Alternatives For Law Of Contract Case Solution:

It is very important to select the alternatives and then evaluate the best one as the company have limited choices and constraints. Therefore to select the best alternative, there are many factors that is needed to be kept in mind. The criteria’s on which business decisions are to be selected areas under:

• Improve profitability
• Increase sales, market shares, return on investments
• Customer satisfaction
• Brand image
• Corporate mission, vision and strategy
• Resources and capabilities

Alternatives should be measures that which alternative will perform better than other one and the valid reasons. In addition, alternatives should be related to the problem statements and issues described in the case study.

STEP 10: Evaluation Of Alternatives For Law Of Contract Case Solution:

If the selected alternative is fulfilling the above criteria, the decision should be taken straightforwardly. Best alternative should be selected must be the best when evaluating it on the decision criteria. Another method used to evaluate the alternatives are the list of pros and cons of each alternative and one who has more pros than cons and can be workable under organizational constraints.

STEP 11: Recommendations For Law Of Contract Case Study (Solution):

There should be only one recommendation to enhance the company’s operations and its growth or solving its problems. The decision that is being taken should be justified and viable for solving the problems.

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Reproductive rights in America

What's at stake as the supreme court hears idaho case about abortion in emergencies.

Selena Simmons-Duffin

The Supreme Court will hear another case about abortion rights on Wednesday. Protestors gathered outside the court last month when the case before the justices involved abortion pills. Tom Brenner for The Washington Post/Getty Images hide caption

The Supreme Court will hear another case about abortion rights on Wednesday. Protestors gathered outside the court last month when the case before the justices involved abortion pills.

In Idaho, when a pregnant patient has complications, abortion is only legal to prevent the woman's death. But a federal law known as EMTALA requires doctors to provide "stabilizing treatment" to patients in the emergency department.

The Biden administration sees that as a direct conflict, which is why the abortion issue is back – yet again – before the Supreme Court on Wednesday.

The case began just a few weeks after the justices overturned Roe v. Wade in 2022, when the federal Justice Department sued Idaho , arguing that the court should declare that "Idaho's law is invalid" when it comes to emergency abortions because the federal emergency care law preempts the state's abortion ban. So far, a district court agreed with the Biden administration, an appeals court panel agreed with Idaho, and the Supreme Court allowed the strict ban to take effect in January when it agreed to hear the case.

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The case, known as Moyle v. United States (Mike Moyle is the speaker of the Idaho House), has major implications on everything from what emergency care is available in states with abortion bans to how hospitals operate in Idaho. Here's a summary of what's at stake.

1. Idaho physicians warn patients are being harmed

Under Idaho's abortion law , the medical exception only applies when a doctor judges that "the abortion was necessary to prevent the death of the pregnant woman." (There is also an exception to the Idaho abortion ban in cases of rape or incest, only in the first trimester of the pregnancy, if the person files a police report.)

In a filing with the court , a group of 678 physicians in Idaho described cases in which women facing serious pregnancy complications were either sent home from the hospital or had to be transferred out of state for care. "It's been just a few months now that Idaho's law has been in effect – six patients with medical emergencies have already been transferred out of state for [pregnancy] termination," Dr. Jim Souza, chief physician executive of St. Luke's Health System in Idaho, told reporters on a press call last week.

Those delays and transfers can have consequences. For example, Dr. Emily Corrigan described a patient in court filings whose water broke too early, which put her at risk of infection. After two weeks of being dismissed while trying to get care, the patient went to Corrigan's hospital – by that time, she showed signs of infection and had lost so much blood she needed a transfusion. Corrigan added that without receiving an abortion, the patient could have needed a limb amputation or a hysterectomy – in other words, even if she didn't die, she could have faced life-long consequences to her health.

Attorneys for Idaho defend its abortion law, arguing that "every circumstance described by the administration's declarations involved life-threatening circumstances under which Idaho law would allow an abortion."

Ryan Bangert, senior attorney for the Christian legal powerhouse Alliance Defending Freedom, which is providing pro-bono assistance to the state of Idaho, says that "Idaho law does allow for physicians to make those difficult decisions when it's necessary to perform an abortion to save the life of the mother," without waiting for patients to become sicker and sicker.

Still, Dr. Sara Thomson, an OB-GYN in Boise, says difficult calls in the hospital are not hypothetical or even rare. "In my group, we're seeing this happen about every month or every other month where this state law complicates our care," she says. Four patients have sued the state in a separate case arguing that the narrow medical exception harmed them.

"As far as we know, we haven't had a woman die as a consequence of this law, but that is really on the top of our worry list of things that could happen because we know that if we watch as death is approaching and we don't intervene quickly enough, when we decide finally that we're going to intervene to save her life, it may be too late," she says.

2. Hospitals are closing units and struggling to recruit doctors

Labor and delivery departments are expensive for hospitals to operate. Idaho already had a shortage of providers, including OB-GYNS. Hospital administrators now say the Idaho abortion law has led to an exodus of maternal care providers from the state, which has a population of 2 million people.

Three rural hospitals in Idaho have closed their labor-and-delivery units since the abortion law took effect. "We are seeing the expansion of what's called obstetrical deserts here in Idaho," said Brian Whitlock, president and CEO of the Idaho Hospital Association.

Since Idaho's abortion law took effect, nearly one in four OB-GYNs have left the state or retired, according to a report from the Idaho Physician Well-Being Action Collaborative. The report finds the loss of doctors who specialize in high-risk pregnancies is even more extreme – five of nine full time maternal-fetal medicine specialists have left Idaho.

Administrators say they aren't able to recruit new providers to fill those positions. "Since [the abortion law's] enactment, St. Luke's has had markedly fewer applicants for open physician positions, particularly in obstetrics. And several out-of-state candidates have withdrawn their applications upon learning of the challenges of practicing in Idaho, citing [the law's] enactment and fear of criminal penalties," reads an amicus brief from St. Luke's health system in support of the federal government.

"Prior to the abortion decision, we already ranked 50th in number of physicians per capita – we were already a strained state," says Thomson, the doctor in Boise. She's experienced the loss of OB-GYN colleagues first hand. "I had a partner retire right as the laws were changing and her position has remained open – unfilled now for almost two years – so my own personal group has been short-staffed," she says.

ADF's Bangert says he's skeptical of the assertion that the abortion law is responsible for this exodus of doctors from Idaho. "I would be very surprised if Idaho's abortion law is the sole or singular cause of any physician shortage," he says. "I'm very suspicious of any claims of causality."

3. Justices could weigh in on fetal "personhood"

The state of Idaho's brief argues that EMTALA actually requires hospitals "to protect and care for an 'unborn child,'" an argument echoed in friend-of-the-court briefs from the U.S. Conference of Catholic Bishops and a group of states from Indiana to Wyoming that also have restrictive abortion laws. They argue that abortion can't be seen as a stabilizing treatment if one patient dies as a result.

Thomson is also Catholic, and she says the idea that, in an emergency, she is treating two patients – the fetus and the mother – doesn't account for clinical reality. "Of course, as obstetricians we have a passion for caring for both the mother and the baby, but there are clinical situations where the mom's health or life is in jeopardy, and no matter what we do, the baby is going to be lost," she says.

The Idaho abortion law uses the term "unborn child" as opposed to the words "embryo" or "fetus" – language that implies the fetus has the same rights as other people.

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Mary Ziegler , a legal historian at University of California - Davis, who is writing a book on fetal personhood, describes it as the "North Star" of the anti-abortion rights movement. She says this case will be the first time the Supreme Court justices will be considering a statute that uses that language.

"I think we may get clues about the future of bigger conflicts about fetal personhood," she explains, depending on how the justices respond to this idea. "Not just in the context of this statute or emergency medical scenarios, but in the context of the Constitution."

ADF has dismissed the idea that this case is an attempt to expand fetal rights. "This case is, at root, a question about whether or not the federal government can affect a hostile takeover of the practice of medicine in all 50 states by misinterpreting a long-standing federal statute to contain a hidden nationwide abortion mandate," Bangert says.

4. The election looms large

Ziegler suspects the justices will allow Idaho's abortion law to remain as is. "The Supreme Court has let Idaho's law go into effect, which suggests that the court is not convinced by the Biden administration's arguments, at least at this point," she notes.

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Whatever the decision, it will put abortion squarely back in the national spotlight a few months before the November election. "It's a reminder on the political side of things, that Biden and Trump don't really control the terms of the debate on this very important issue," Zielger observes. "They're going to be things put on everybody's radar by other actors, including the Supreme Court."

The justices will hear arguments in the case on Wednesday morning. A decision is expected by late June or early July.

Correction April 23, 2024

An earlier version of this story did not mention the rape and incest exception to Idaho's abortion ban. A person who reports rape or incest to police can end a pregnancy in Idaho in the first trimester.

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