Is the Assignee of a Contract Liable for the Non-Performance of Delegated Duties?
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Drafting and Enforcing Complex Indemnification Provisions
Drafting And Enforcing Complex Indemnification Provisions D. Hull D. Hull Youngblood, Jr. and Peter N. Flocos Youngblood, Jr. is a partner in the Forget about copy and paste. The best indem Austin, Texas office nification provisions start with the details of of K&L Gates LLP. Mr. Youngblood the transaction. focuses his practice on government contracting, the security industry and com plex THE PURPOSE of this article is to assist transactional financial transactions, and regularly represents and litigation attorneys in the negotiation and drafting clients in a wide array of local, state, and federal of customized, and therefore more effective, indemnifi- contracting transactions and disputes. He can be cation provisions in a wide range of situations, and also reached at [email protected]. to spot certain litigation issues that may arise out of in- demnification provisions. This article will identify issues Peter N. and strategies and suggested language that can act as a Flocos starting point to protect the client’s interests in the area is a partner in the of indemnification in complex transactions and litigation. New York City Readers should note that this article is for informational office of K&L Gates purposes, does not contain or convey legal advice, and LLP. Mr. Flocos, may or may not reflect the views of the authors’ firm or who began his any particular client or affiliate of that firm. The infor- legal career as mation herein should not be used or relied upon in regard a transactional lawyer and then to any particular facts or circumstances without first con- became a litigator, sulting a lawyer. -
In Dispute 30:2 Contract Formation
CHAPTER 30 CONTRACTS Introductory Note A. CONTRACT FORMATION 30:1 Contract Formation ― In Dispute 30:2 Contract Formation ― Need Not Be in Writing 30:3 Contract Formation ― Offer 30:4 Contract Formation ― Revocation of Offer 30:5 Contract Formation ― Counteroffer 30:6 Contract Formation ― Acceptance 30:7 Contract Formation ― Consideration 30:8 Contract Formation ― Modification 30:9 Contract Formation ― Third-Party Beneficiary B. CONTRACT PERFORMANCE 30:10 Contract Performance — Breach of Contract — Elements of Liability 30:11 Contract Performance — Breach of Contract Defined 30:12 Contract Performance — Substantial Performance 30:13 Contract Performance — Anticipatory Breach 30:14 Contract Performance — Time of Performance 30:15 Contract Performance — Conditions Precedent 30:16 Contract Performance — Implied Duty of Good Faith and Fair Dealing — Non-Insurance Contract 30:17 Contract Performance — Assignment C. DEFENSES Introductory Note 30:18 Defense — Fraud in the Inducement 30:19 Defense — Undue Influence 30:20 Defense — Duress 30:21 Defense — Minority 30:22 Defense — Mental Incapacity 30:23 Defense — Impossibility of Performance 30:24 Defense — Inducing a Breach by Words or Conduct 30:25 Defense — Waiver 30:26 Defense — Statute of Limitations 30:27 Defense — Cancellation by Agreement 30:28 Defense — Accord and Satisfaction (Later Contract) 30:29 Defense — Novation D. CONTRACT INTERPRETATION Introductory Note 30:30 Contract Interpretation — Disputed Term 30:31 Contract Interpretation — Parties’ Intent 30:32 Contract Interpretation — -
Why Expectation Damages for Breach of Contract Must Be the Norm: a Refutation of the Fuller and Perdue "Three Interests&Quo
Nebraska Law Review Volume 81 | Issue 3 Article 2 2003 Why Expectation Damages for Breach of Contract Must Be the Norm: A Refutation of the Fuller and Perdue "Three Interests" Thesis W. David Slawson University of Southern California Gould School of Law, [email protected] Follow this and additional works at: https://digitalcommons.unl.edu/nlr Recommended Citation W. David Slawson, Why Expectation Damages for Breach of Contract Must Be the Norm: A Refutation of the Fuller and Perdue "Three Interests" Thesis, 81 Neb. L. Rev. (2002) Available at: https://digitalcommons.unl.edu/nlr/vol81/iss3/2 This Article is brought to you for free and open access by the Law, College of at DigitalCommons@University of Nebraska - Lincoln. It has been accepted for inclusion in Nebraska Law Review by an authorized administrator of DigitalCommons@University of Nebraska - Lincoln. W. David Slawson* Why Expectation Damages for Breach of Contract Must Be the Norm: A Refutation of the Fuller and Perdue "Three Interests" Thesis TABLE OF CONTENTS 840 I. Introduction .......................................... Principal Institutions in a Modern Market II. The 843 Economy in Which Contracts Are Used ................ A. The Institution of the Economic Market: Contracts 843 as Bargains ....................................... Institution of Credit and Finance: Contracts as B. The 845 Property .......................................... 846 the Institutions' Needs ....................... III. Meeting 846 A. Providing a Remedy for Every Breach ............. Contracts Enforceable as Soon as They Are B. Making 847 M ade ............................................. Has Compensating the Injured Party for What He C. 848 ost ............................................... L 848 Damages Under the Expectation Measure ...... 1. 849 2. Damages Under the Reliance Measure ......... 849 a. -
Failure of Consideration As a Basis for Quantum Meruit Following a Repudiatory Breach of Contract
FAILURE OF CONSIDERATION AS A BASIS FOR QUANTUM MERUIT FOLLOWING A REPUDIATORY BREACH OF CONTRACT KARAN RAGHAVAN* I INTRODUCTION In Renard Constructions (ME) Pty Ltd v Minister for Public Works, the New South Wales Court of Appeal affirmed the right of a builder to elect to sue for quantum meruit, as an alternative to a claim for contract damages, following a repudiation by the principal.1 The Court also held that, in assessing a claim for quantum meruit in this context, the contract price does not limit the amount which the builder is entitled to recover.2 Both aspects of the decision were subsequently followed by the Queensland Court of Appeal in Iezzi Constructions Pty Ltd v Watkins Pacific (Qld) Pty Ltd,3 and the Victorian Court of Appeal in Sopov v Kane Constructions Pty Ltd [No 2].4 Whilst the law in this area can therefore be regarded as settled, the jurisprudential basis for the availability of quantum meruit in this context remains unclear. In Pavey & Matthews Pty Ltd v Paul, a majority of the High Court of Australia held that an award of quantum meruit is restitutionary in nature, and that the claimant’s entitlement to restitution rests upon the concept of unjust enrichment.5 However, as has been emphasised in a number of subsequent cases, unjust enrichment is not a direct source of liability in Australia.6 Rather, it has been described as a legal category which may assist in explaining the variety of situations in which the law has historically imposed an obligation upon one party to make restitution of a benefit received at the expense of another.7 Thus, the High Court has said that a party seeking restitution must establish the existence of some ‘qualifying or * BA, LLB (Hons); Solicitor, King & Wood Mallesons. -
Choice of Law and the Covenant of Good Faith and Fa
RETAIL AND HOSPITALITY When—or Should We Say Where— Choice of Law and Is Compliance with a Contract also a Breach? the Covenant of By Leon Silver Good Faith and Fair Dealing Carelessness in drafting In my practice, my national and regional retail clients contract language can most often opt for the company’s headquarters’ home state result in your client’s as both the exclusive forum and the source for the control- company undertaking ling law in their master vendor agreements as well as any number of other contracts. While the prac- implies the duty of good faith and fair obligations and becoming tical realities of having to manage litigation dealing in every contract, and because the that could conceivably occur anywhere in states apply the duty differently, if you and exposed to liabilities the country make the forum choice a seem- your clients have not become aware of the ingly straightforward decision, I have often how the controlling jurisdiction treats the that the company never found that contract drafters do not give covenant of good faith and fair dealing, you the choice of law provision enough criti- can find your client’s sober and reasoned anticipated because the cal thought. This is particularly so because business decisions turned on their heads. the choice of controlling law may have the law implies duties that unintended and completely surprising con- Arizona: The Broadest View sequence of making conduct that complies Arizona sits at the broadest end of the good you cannot otherwise with the terms of a contract still actionable faith and fair dealing spectrum. -
Misrepresentation: the Pitfalls of Pre-Contract Statements
inbrief Misrepresentation: the pitfalls of pre-contract statements Inside What makes a misrepresentation actionable? Causes of action Remedies Risk management Practical tips inbrief Introduction Prior to the conclusion of a contract What makes a misrepresentation complete the work in the stated timescale. parties will often make statements actionable? However, the statement of opinion carries with it an implied representation of fact, namely that to each other - during negotiations, There are various conditions that must be satisfied the supplier in fact held such an opinion. In an in tender documents and in a variety to make a misrepresentation actionable: appropriate context, it also carries with it an of other ways. Most pre-contract implied representation of fact that the supplier 1. There must be a statement by the statements are carefully considered. had reasonable grounds for holding that representor or his agent. The statement But sometimes statements are made opinion and perhaps also the further implied can be oral, written or by conduct. which are false or misleading. When representation that it had carried out a proper false statements induce an innocent 2. The statement must be a statement of fact analysis of the amount of time needed to (as opposed to a statement of opinion or complete the work. Proving that those implied party to enter into a contract the future intention). representations of fact were false would in consequences can be serious. principle lead to liability in misrepresentation. 3. The representation must be made to the The purpose of this guide is to representee or to a class of which the The key point is that actionable consider the litigation risks generated representee is a member. -
The Implied Covenant of Good Faith and Fair Dealing
The Implied Covenant of Good Faith and Fair Dealing Go to: Recognition of the Duty of Good Faith and Fair Dealing | Application of the Covenant of Good Faith and Fair Dealing | Drafting Contract Terms to Address the Covenant | Related Content Reviewed on: 05/23/2019 It is well established that every contract has an implied covenant of good faith and fair dealing with respect to the parties’ performance and enforcement of the agreement. The covenant imposes an obligation on parties to act in good faith and deal fairly with other parties to the contract, even though this duty is not specifically stated in the agreement. Most contracts, especially complex agreements, cannot address every conceivable scenario nor provide detailed terms regarding every aspect of each party’s obligations. Performance may entail or necessitate actions that are not expressly set forth in the agreement and/or involve discretion on a party as to how to go about performing its obligations. The implied covenant of good faith and fair dealing prevents parties from exercising discretion and performing their contractual obligations in bad faith and in a manner that denies the other party the benefit of its bargain. The covenant can provide judges with a legal basis to fill gaps that may exist in contracts, as well as to restrict unreasonable or bad faith performance of contractual obligations when warranted by the circumstances. Despite its broad application to all contracts, the meaning of and requirements imposed by the implied covenant of good faith and fair dealing are often not adequately understood by parties to commercial agreements. -
Limitations on the Availability of Specific Performance
COMMENTS past history so that they may impose an appropriate penalty,"s but this pro- cedure greatly increases the possibility that the verdict will be influenced by factors not relevant to the question of the defendant's guilt or innocence. 33 When the court imposes punishment the jury must be discouraged from ac- quitting defendants whose guilt is certain but whom they are unwilling to con- vict because they fear that the penalty will be too harsh. Permitting the jury to recommend mercy is therefore desirable, since it would tend to eliminate that fear. Yet if the rule of reasonable doubt is to be adhered to, either juries must be more strictly controlled in making recommendations of mercy, or it must be ad- mitted that the policy of the law has changed and that in doubtful cases it is now preferable to convict defendants and allow jurors to ease their consciences in so doing by convincing themselves that the penalty will be light. LIMITATIONS ON THE AVAILABILITY OF SPECIFIC PERFORMANCE Normally the damages which are awarded for breach of contract are intended to put a plaintiff in as good a position as he would have been in had the agree- ment been carried out. Such expectation damages insure a rough measure of compensation for hard-to-prove or hard-to-measure elements of reliance and for the distress and insecurity which result from failure to keep promises. In addition, good guesses about future needs in our free enterprise economy are rewarded. One would therefore naturally expect that the plaintiff would be given, whenever possible, an exact equivalent of performance, rather than its approximation in damages. -
Contract Basics for Litigators: Illinois by Diane Cafferata and Allison Huebert, Quinn Emanuel Urquhart & Sullivan, LLP, with Practical Law Commercial Litigation
STATE Q&A Contract Basics for Litigators: Illinois by Diane Cafferata and Allison Huebert, Quinn Emanuel Urquhart & Sullivan, LLP, with Practical Law Commercial Litigation Status: Law stated as of 01 Jun 2020 | Jurisdiction: Illinois, United States This document is published by Practical Law and can be found at: us.practicallaw.tr.com/w-022-7463 Request a free trial and demonstration at: us.practicallaw.tr.com/about/freetrial A Q&A guide to state law on contract principles and breach of contract issues under Illinois common law. This guide addresses contract formation, types of contracts, general contract construction rules, how to alter and terminate contracts, and how courts interpret and enforce dispute resolution clauses. This guide also addresses the basics of a breach of contract action, including the elements of the claim, the statute of limitations, common defenses, and the types of remedies available to the non-breaching party. Contract Formation to enter into a bargain, made in a manner that justifies another party’s understanding that its assent to that 1. What are the elements of a valid contract bargain is invited and will conclude it” (First 38, LLC v. NM Project Co., 2015 IL App (1st) 142680-U, ¶ 51 (unpublished in your jurisdiction? order under Ill. S. Ct. R. 23) (citing Black’s Law Dictionary 1113 (8th ed.2004) and Restatement (Second) of In Illinois, the elements necessary for a valid contract are: Contracts § 24 (1981))). • An offer. • An acceptance. Acceptance • Consideration. Under Illinois law, an acceptance occurs if the party assented to the essential terms contained in the • Ascertainable Material terms. -
Non-Assignability of Contracts Without Counterparty Consent News & Analysis Newsletter Section Publishing CLE & Events
3/13/2018 >>> Non-Assignability of Contracts Without Counterparty Consent | Section of Litigation / Commercial and Business Litigation Home > ABA Groups > Section of Litigation > Committees > Commercial & Business > Contract Boilerplate for Litigators > >>> Non-Assignability of Contracts Without Counterparty Consent News & Analysis Non-Assignability of Contracts Without Counterparty • Practice Points Consent • Articles Yvette V. Mishev – February 28, 2018 • Contract Boilerplate for Litigators – Article Series What Is a Non-Assignment Provision and Why Do You Need • Spotlight on Pro Bono It? Generally speaking, contracts can be freely assigned to third • Audio parties. Non-assignment provisions are designed so that contracts • Programs & Materials cannot be as freely assigned to third parties; or at least, not • About without first obtaining the contracting counterparty’s consent. The • Announcements purpose of a non-assignment provision is to ensure that the identities of the original two contracting parties remain the same throughout the term of the contract. A basic non-assignment provision reads something like the following: Newsletter “This contract cannot be assigned to anyone without the written consent of both parties.” » Winter 2018 A non-assignment provision is highly recommended if the service Read More Commercial & or product contracted for is unique to the party being contracted Business Newsletters with and/or if the identity of the service or product provider is valued as much as the service or product being provided. Section Publishing Section of Litigation For example, if Layla contracts Monique Lhuillier to make a dress Publications for her wedding, a part of the benefit Layla is bargaining for is a Section of Litigation Books dress designed by Monique Lhullier. -
Unconscionability As a Sword: the Case for an Affirmative Cause of Action
Unconscionability as a Sword: The Case for an Affirmative Cause of Action Brady Williams* Consumers are drowning in a sea of one-sided fine print. To combat contractual overreach, consumers need an arsenal of effective remedies. To that end, the doctrine of unconscionability provides a crucial defense against the inequities of rigid contract enforcement. However, the prevailing view that unconscionability operates merely as a “shield” and not a “sword” leaves countless victims of oppressive contracts unable to assert the doctrine as an affirmative claim. This crippling interpretation betrays unconscionability’s equitable roots and absolves merchants who have already obtained their ill-gotten gains. But this need not be so. Using California consumer credit law as a backdrop, this Note argues that the doctrine of unconscionability must be recrafted into an offensive sword that provides affirmative relief to victims of unconscionable contracts. While some consumers may already assert unconscionability under California’s Consumers Legal Remedies Act, courts have narrowly construed the Act to exempt many forms of consumer credit. As a result, thousands of debtors have remained powerless to challenge their credit terms as unconscionable unless first sued by a creditor. However, this Note explains how a recent landmark ruling by the California Supreme Court has confirmed a novel legal theory that broadly empowers consumers—including debtors—to assert unconscionability under the State’s Unfair Competition Law. Finally, this Note argues that unconscionability’s historical roots in courts of equity—as well as its treatment by the DOI: https://doi.org/10.15779/Z382B8VC3W Copyright © 2019 California Law Review, Inc. California Law Review, Inc. -
IN the UNITED STATES DISTRICT COURT for the DISTRICT of NEBRASKA E3 BIOFUELS-MEAD, LLC, Plaintiff(S), V. SKINNER TANK COMPANY;
8:06-cv-00706-JFB-FG3 Doc # 232 Filed: 01/30/14 Page 1 of 11 - Page ID # <pageID> IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA E3 BIOFUELS-MEAD, LLC, Plaintiff(s), 8:06CV706 v. SKINNER TANK COMPANY; MEMORANDUM AND ORDER Defendant/Third-Party Plaintiff, v. DILLING MECHANICAL CONTRACTORS, INC. Third-Party Defendant. This matter is before the court on a motion for partial summary judgment filed by defendant/third-party plaintiff Skinner Tank Company (“Skinner”), Filing No. 162. This is an action for breach of contract, fraud, and gross negligence in connection with an ethanol plant construction project in Mead, Nebraska.1 The plaintiffs, E Biofuels-Mead, LLC and E3 Biofuels-Mead, LLC (hereinafter, collectively, “E3”), entered into a contract with defendant Skinner for the purchase, design, fabrication, construction and installation of several tanks to be used in an Integrated Solid Waste and Bio-Fuels Facility (the “Project”) that retrieves usable energy from cattle waste. Jurisdiction is premised on 28 U.S.C. § 1332, diversity of citizenship. 1 The action also involves a counterclaim against E3 and third-party claim against Dilling Construction, the management firm hired by E3 for the project, for tortious interference with a contract, negligence, indemnification and contribution. 8:06-cv-00706-JFB-FG3 Doc # 232 Filed: 01/30/14 Page 2 of 11 - Page ID # <pageID> Skinner moves for a summary judgment of dismissal on the plaintiff’s claims of fraud and gross negligence, asserting that those claims are barred under the economic loss doctrine. Further, it argues that E3 has failed to plead fraud with particularity under Fed.