Hamer v. Sidway
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Transcript Hamer v. Sidway
George Mason School of Law
Contracts I
Consideration
F.H. Buckley
[email protected]
1
The need for a consideration
Restatement § 17(1)
Agreement and Bargain: § 3
Definition § 71
2
The need for a consideration
How is consideration defined in
Hamer v. Sidway?
3
Hamer v. Sidway
The nephew was going to the dogs…
4
Hamer v. Sidway
What is the benefit-detriment
standard?
Do we have to ask whether it was a real
detriment?
Or whether it was a benefit to the uncle?
5
Hamer v. Sidway
What is the benefit-detriment
standard?
Can you suggest why the uncle might
have intended that the promise be
legally enforceable?
6
Hamer v. Sidway
What is the benefit-detriment
standard?
Can you suggest why the uncle might
have intended that the promise be
legally enforceable?
Animus contrahendi: Restatement § 21
7
Kirksey
Why did Isaac invite Antillico to
Talladega county?
8
Kirksey
Why did Isaac invite Antillico to
Talladega county?
Was there a benefit to Isaac?
A detriment to Antillico?
9
Kirksey
Why did Isaac invite Antillico to
Talladega county?
Was there a benefit to Isaac?
A detriment to Antillico?
Williston’s tramp?
10
Kirksey
Why did Isaac invite Antillico to
Talladega county?
Do you think Isaac intended legal
liability?
And is that determinative?
11
St. Peter v. Pioneer
Why didn’t the theatre restrict bank
night to paying patrons?
12
St. Peter v. Pioneer
Why didn’t the theatre restrict bank
night to paying patrons?
So was there a contract with nonpaying people waiting outside?
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St. Peter v. Pioneer
Why didn’t the theatre restrict bank
night to paying patrons?
So was there a contract with nonpaying people waiting outside?
How was the Π to accept?
14
St. Peter v. Pioneer
Why didn’t the theatre restrict bank
night to paying patrons?
Can you articulate why the theatre
might have wanted the promise to be
binding?
Recall Lefkowitz
15
The Bargain Theory
Restatement § 72
How would you define it?
Is it broader or narrower than the
benefit/detriment theory?
16
The Bargain Theory
Restatement § 72
How would you define it?
You and I want to see a date for lunch
but quarrel over the date. Is this
bargaining?
17
The Bargain Theory
Restatement § 72
How would you define it?
You and I want to see a date for lunch
but quarrel over the date. Is this
bargaining?
Was Kirksey a bargain situation? What
about Hamer v. Sidway?
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The Bargain Theory
Restatement § 72
How would you define it?
Spiedel at 134 on the move to a
capitalist economy
19
The Bargain Theory
Restatement § 72
So what’s the point of the bargain
theory?
Is it ideological-a subsidy for capitalism?
Or is something else going on?
20
What if there’s no bargain:
Gratuitous Promises
Uncle Ebenezer might want to bind
himself? So how does he do so?
At common law, a gift is effective if:
Donative intent (animus donandi)
Delivery by donor
Acceptance by donee
21
What if there’s no bargain:
Gratuitous Promises
Uncle Ebenezer might want to bind
himself? So how does he do so?
What constitutes delivery by donor?
Actual delivery of gift
Constructive delivery (e.g. key to car or
house)
Deed of gift
22
The seal
23
The seal
Definition: Restatement § 96
Effect of seal: Restatement § 95(1)
24
What’s wrong with
formalism?
Spondeo!
25
Spodese
mihi
dare?
Lon Fuller on Consideration
The evidentiary function
Evidence that a promise exists
26
Lon Fuller on Consideration
The evidentiary function
Evidence that a promise exists
The deterrent function
a check against rash promises
27
Lon Fuller on Consideration
Remember the Statute of Frauds?
The evidentiary function
Evidence that a promise exists
The deterrent function
a check against rash promises
The channeling function
“channels for the legally effective
expression of intention”
28
Lon Fuller on Consideration
Does all this simply come down to the
intention to be legally bound?
Is that all
there is?
29
Lon Fuller on Consideration
Does this all come down to the
intention to be legally bound?
If so, what does this tell you about
the standard for adequacy of
consideration?
A peppercorn
30
Wolford v. Powers 142
What was the consideration from the
Wolfords?
31
Wolford v. Powers
What was the consideration from the
Wolfords?
Adequacy irrelevant: Restatement § 79
32
Wolford v. Powers
What was the consideration from the
Wolfords?
What was the relevance of the
subsequent care provided to Lehman
33
Wolford v. Powers
What was the consideration from the
Wolfords?
What was the relevance of the
subsequent care provided to Lehman
The past consideration doctrine
How would you apply Restatement § 86 in
Wofford?
34
Performance of Prior Legal Obligation
A reward is offered for apprehension
of a thief. Policeman catches thief in
performance of his duties.
Is there consideration?
35
Performance of Prior Legal Obligation
A reward is offered for apprehension
of a thief. Policeman catches thief in
performance of his duties.
Restatement § 73
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Performance of Prior Legal Obligation
A reward is offered for apprehension
of a thief. Policeman catches thief in
performance of his duties.
Why is this a sensible policy?
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Performance of Prior Legal Obligation
A reward is offered for apprehension
of a thief. Policeman catches thief in
performance of his duties.
38
Performance of Prior Legal Obligation
A reward is offered for apprehension
of a thief. Policeman catches thief in
performance of his duties.
What do you think of the proviso at the
end?
39
Performance of Prior Legal Obligation
Compromise with creditors?
40
Performance of Prior Legal Obligation
Compromise with creditors?
Restatement § 73, illustration 6
41
Does the promisee’s motive matter?
Williams v. Carwardine (p. 147)
The status of dying declarations
Timor mortis conturbat me
42
Does the promisee’s motive matter?
Williams v. Carwardine (p. 147)
Restatement § 81
And if this weren’t the case?
43
Re Greene
Where was the consideration?
44
Re Greene
Where was the consideration?
What about the sexual services?
As future services, were these tainted by
the doctrine of illegality
45
Re Greene
Where was the consideration?
What about the sexual services?
If future services these would be tainted
by the doctrine of illegality
Is this simply the expression of a time-worn
archaic morality?
46
Re Greene
Where was the consideration?
What about the sexual services?
If future services these would be tainted
by the doctrine of illegality
Is this simply the expression of a time-worn
archaic morality?
What’s the difference between a contract for ex
ante services and palimony for past services?
47
Re Greene
Where was the consideration?
What about the sexual services?
If future services these would be tainted
by the doctrine of illegality
Is this simply the expression of a time-worn
archaic morality?
Is there something else going on?
48
Re Greene: Adequacy
“for one dollar and other good and
valuable consideration”
Why didn’t that work?
49
Re Greene
“for one dollar and other good and
valuable consideration”
Why didn’t that work?
What if they had added “the receipt and
adequacy thereof is hereby
acknowledged”
And provided a cheque for that amount?
50
Re Greene
What about the fact that the contract
was under seal?
51
Schnell v. Nell (p. 146)
A promise of $600 to honor wife’s
promise in will consideration of:
Promise in will
one cent
love and affection for deceased wife
52
Schnell v. Nell (p. 146)
A promise of $600 to honor wife’s
promise in will consideration of:
Promise in will
one cent
love and affection for deceased wife
What about the moral obligation to
honor his wife’s wishes?
Causa vs. consideration
53
Batsakis
Why did they
structure the contract
as a loan of $2,000
at 8 per cent?
Athens, April 27 1942
54
Batsakis 139
Why did they structure the contract
as a loan of $2,000 at 8 per cent?
Is there really a problem of adequacy
here?
55
Mutuality of Obligation
Either both are bound or neither is
bound
Sed qu. unilateral contracts
See Restatement § 79: not a separate
requirement
56
George Mason School of Law
Contracts I
Promissory Estoppel
F.H. Buckley
[email protected]
57