JD Next Exam Study Guide Questions With Complete
Solutions
What is a Contract?
o A legally binding agreement
o A promise or set of promises which the law will enforce
o The agreement creates rights and obligations that may be enforced in the courts.
Contracts:Normal Method of Enforcement?
o The normal method of enforcement is an action for damages for breach of contract, though in some
cases the court may order performance by the party in default.
What important facts helped the court decide against the Def dr and award damages to the Plf in
Hawkins V. McGee?
The defendant doctor (McGee), said before the operation was decided upon “I will guarantee to make
the hand a hundred percent perfect hand or a hundred percent good hand”
The following text is taken from the opening paragraph of Hawkins v. McGee, the "Case of the Day"
reading assignment:
"Assumpsit against a surgeon for breach of an alleged warranty of the success of an operation. Trial by
jury. Verdict for the plaintiff.“
Explain the term Assumpsit as used in Hawkins v. McGee?
A common law form of legal action available to a plaintiff who claims that a contract has been breached.
Assumpsit:
Hawkins v. McGee Explanation: A common law form of legal action available to a plaintiff who claims
that a contract has been breached.
Definition: Legal action for recovering damages for non-performance of a contract. It means to
"undertake or to promise." It's used to enforce informal agreements (not under seal) allowing a party to
recover damages.
Two-step analysis in Hawkins v. McGee: (1) Is there a breach of the contract? (2) If so, how do you
calculate damages arising from the breach?
,Is there a breach of the contract?
. "The purpose of the law is "to put the plaintiff in as good a position as he would have been in had the
defendant kept his contract." 3 Williston Cont. §1338. The measure of recovery "is based upon what the
defendant should have given the plaintiff, not what the plaintiff has given the defendant or otherwise
expended." 3 Williston Cont. § 1341.
If so, how do you calculate damages arising from the breach?
- ...We therefore conclude that the true measure of the plaintiff's damage in the present case is the
difference between the value to him of a perfect hand or a good hand, such as the jury found the
defendant promised him, and the value of his hand in its present condition, including any incidental
consequences fairly within the contemplation of the parties when they made their contract.
Calculating Expectation Damages in Hawkins v. McGee:
- Hawkins v. McGee:
... "The purpose of the law is "to put the plaintiff in as good a position as he would have been in had the
defendant kept his contract." 3 Williston Cont. §1338. The measure of recovery "is based upon what the
defendant should have given the plaintiff, not what the plaintiff has given the defendant or otherwise
expended." 3 Williston Cont. § 1341.
- ...We therefore conclude that the true measure of the plaintiff's damage in the present case is the
difference between the value to him of a perfect hand or a good hand, such as the jury found the
defendant promised him, and the value of his hand in its present condition, including any incidental
consequences fairly within the contemplation of the parties when they made their contract.
Ways to Think About Contracts:
- Contracts as a social relationship: (i.e. Father & Son, Buyers & Seller, Doctor & Patient). + Promises /
Agreements play a role in contracts through the social relationships
- Contracts as exchanges between the parties. + Ex: Gift exchanges
+ Ex: Money exchanges
+ Ex: Exchanges for services
- Contracts as agreements between parties: + Some contracts are known as "express agreements" or
"implied agreements"
+ Ex: Shaking hands
+ Ex: Paying back money to a friend
- Contracts as expectation of the parties: (If someone says to stop smoking until 21, they will give you
money).
, - So, Ask what is the relationship? exchange? agreement? What are the expectations?
Contract law asks the following basic questions:
- Have the parties behaved in a way as to create legally recognizable expectations in one another?
- If they have, how should those expectation be characterized and understood?
- Was the understanding arrived at faithfully carried out by the parties or somehow thwarted?
- If thwarted, what if anything should the law do about it?
Expectation Damages Example Problem:
- Buyer and Seller contract for the sale of 1,000 barrels of oil (carefully specified as to grade, etc.) at a
price of $50 a barrel, payment and delivery in 90 days.
- On the payment/delivery date, oil is selling at $44 a barrel and Buyer refuses to go through with the
transaction.
- How much can Seller, injured party, recover?
(a) $0.00 (b)$50,000 (c)$6,000
§ Expectation damage rule limits Sellers claim to the difference between contract price ($50) and
the market value of the goods at the contract date ($44 or $6 a barrel.)
Figure out...
1. What the position of the non-breaching party would have been if the promise had NOT
been breached; ($6 a barrel for 1000 barrels)
2. The position that the non-breacher is presently in as a result of the breach; (Would've recieved
$6,000)
3. How much he or she needs to get from the present position to the position he or she would have
been in if the contract had BEEN performed. (Sellers present position- received ($0) to sellers position
would have been -received( $6000)
(Price for oil was $50/barrel, but on the date of delivery, it was $44) thats $6 difference.
$50-$44 = $6
$6 a day
1,000 barrels
6 X 1,000 = 6,000 is what the seller, injured party would have recieved. That would be the profit the
seller would've made on the contract had it not been breached and can recover.
Expectation Damages
Solutions
What is a Contract?
o A legally binding agreement
o A promise or set of promises which the law will enforce
o The agreement creates rights and obligations that may be enforced in the courts.
Contracts:Normal Method of Enforcement?
o The normal method of enforcement is an action for damages for breach of contract, though in some
cases the court may order performance by the party in default.
What important facts helped the court decide against the Def dr and award damages to the Plf in
Hawkins V. McGee?
The defendant doctor (McGee), said before the operation was decided upon “I will guarantee to make
the hand a hundred percent perfect hand or a hundred percent good hand”
The following text is taken from the opening paragraph of Hawkins v. McGee, the "Case of the Day"
reading assignment:
"Assumpsit against a surgeon for breach of an alleged warranty of the success of an operation. Trial by
jury. Verdict for the plaintiff.“
Explain the term Assumpsit as used in Hawkins v. McGee?
A common law form of legal action available to a plaintiff who claims that a contract has been breached.
Assumpsit:
Hawkins v. McGee Explanation: A common law form of legal action available to a plaintiff who claims
that a contract has been breached.
Definition: Legal action for recovering damages for non-performance of a contract. It means to
"undertake or to promise." It's used to enforce informal agreements (not under seal) allowing a party to
recover damages.
Two-step analysis in Hawkins v. McGee: (1) Is there a breach of the contract? (2) If so, how do you
calculate damages arising from the breach?
,Is there a breach of the contract?
. "The purpose of the law is "to put the plaintiff in as good a position as he would have been in had the
defendant kept his contract." 3 Williston Cont. §1338. The measure of recovery "is based upon what the
defendant should have given the plaintiff, not what the plaintiff has given the defendant or otherwise
expended." 3 Williston Cont. § 1341.
If so, how do you calculate damages arising from the breach?
- ...We therefore conclude that the true measure of the plaintiff's damage in the present case is the
difference between the value to him of a perfect hand or a good hand, such as the jury found the
defendant promised him, and the value of his hand in its present condition, including any incidental
consequences fairly within the contemplation of the parties when they made their contract.
Calculating Expectation Damages in Hawkins v. McGee:
- Hawkins v. McGee:
... "The purpose of the law is "to put the plaintiff in as good a position as he would have been in had the
defendant kept his contract." 3 Williston Cont. §1338. The measure of recovery "is based upon what the
defendant should have given the plaintiff, not what the plaintiff has given the defendant or otherwise
expended." 3 Williston Cont. § 1341.
- ...We therefore conclude that the true measure of the plaintiff's damage in the present case is the
difference between the value to him of a perfect hand or a good hand, such as the jury found the
defendant promised him, and the value of his hand in its present condition, including any incidental
consequences fairly within the contemplation of the parties when they made their contract.
Ways to Think About Contracts:
- Contracts as a social relationship: (i.e. Father & Son, Buyers & Seller, Doctor & Patient). + Promises /
Agreements play a role in contracts through the social relationships
- Contracts as exchanges between the parties. + Ex: Gift exchanges
+ Ex: Money exchanges
+ Ex: Exchanges for services
- Contracts as agreements between parties: + Some contracts are known as "express agreements" or
"implied agreements"
+ Ex: Shaking hands
+ Ex: Paying back money to a friend
- Contracts as expectation of the parties: (If someone says to stop smoking until 21, they will give you
money).
, - So, Ask what is the relationship? exchange? agreement? What are the expectations?
Contract law asks the following basic questions:
- Have the parties behaved in a way as to create legally recognizable expectations in one another?
- If they have, how should those expectation be characterized and understood?
- Was the understanding arrived at faithfully carried out by the parties or somehow thwarted?
- If thwarted, what if anything should the law do about it?
Expectation Damages Example Problem:
- Buyer and Seller contract for the sale of 1,000 barrels of oil (carefully specified as to grade, etc.) at a
price of $50 a barrel, payment and delivery in 90 days.
- On the payment/delivery date, oil is selling at $44 a barrel and Buyer refuses to go through with the
transaction.
- How much can Seller, injured party, recover?
(a) $0.00 (b)$50,000 (c)$6,000
§ Expectation damage rule limits Sellers claim to the difference between contract price ($50) and
the market value of the goods at the contract date ($44 or $6 a barrel.)
Figure out...
1. What the position of the non-breaching party would have been if the promise had NOT
been breached; ($6 a barrel for 1000 barrels)
2. The position that the non-breacher is presently in as a result of the breach; (Would've recieved
$6,000)
3. How much he or she needs to get from the present position to the position he or she would have
been in if the contract had BEEN performed. (Sellers present position- received ($0) to sellers position
would have been -received( $6000)
(Price for oil was $50/barrel, but on the date of delivery, it was $44) thats $6 difference.
$50-$44 = $6
$6 a day
1,000 barrels
6 X 1,000 = 6,000 is what the seller, injured party would have recieved. That would be the profit the
seller would've made on the contract had it not been breached and can recover.
Expectation Damages
