Contract – Page 8

The most recent New York University Law Review (vol 83, number 6, December 2008) has two wonderful pieces about the Law of Contract, one relating to the old chestnut of efficient breach (a doctrine that has taken root in US law, but not elsewhere in the common law world), the other relating to the theoretical structure of the law’s approach to the subject.

Barry E. Adler Efficient Breach Theory Through the Looking Glass (pdf); here’s the abstract:

A party in breach of contract cannot sue the victim of breach to recover what would have been the victim’s loss on the contract. The doctrinal rationale is simple: A violator should not benefit from his violation. This rationale does not, however, provide an economic justification for the rule. Indeed, efficient breach theory is founded on the proposition that a breach of contract need not be met with reproach. Yet the prospect of recovery by the party in breach—that is, the prospect of negative damages—has received scant attention in the contracts literature. Close analysis reveals potential costs to disallowance of negative damages, particularly where a party with private information about the benefits of termination also has an incentive to continue under the contract.

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Contract law and the slave trade

14 January, 200930 November, 2020

| 4 Comments

| Contract, The Zong

Nate Oman, on Concurring Opinions, writes that he has just finished Simon Schama‘s Rough Crossings: Britain, Slaves, and the American Revolution (cover left) (Harper Collins, 2007). He is not sparing in his praise for the book, and then comments:

As a contract geek, however, the most fascinating part of the book was the story of The Zong, an episode that surely must stand as the most hideous example of perverse incentives in the history of contract drafting.

The case is Gregson v Gilbert (1783) 3 Doug 232, 99 ER 629, [1783] EngR 85 (22 May 1783) (pdf). It related to a claim against an insurer for the value of cargo thrown overboard from The Zong as a matter of necessity to survive an emergency. The claim succeeded at first instance, but on appeal, Lord Mansfield and Willis and Buller JJ ordered a retrial on the grounds that the evidence as adduced was unsatisfactory. So far, so ordinary. What makes this case extraordinary is that the ship’s cargo consisted of slaves, and the emergency consisted of a lack of water for them to drink when the ship’s captain’s navigation skills failed him and he missed landfall in Jamaica (it is voyage 84106 on the Trans-Atlantic Slave Trade Database).…

Contract, planning, PIAB

12 January, 200930 January, 2009

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| Contract, Irish cases

Law reports from today’s Irish Times:

Contract based on undermining planning code cannot be enforced
Kelly -v- Simpson: High Court. Judgment delivered by Mr Justice Charleton on December 1st, 2008

A contract based on a price that would not have been achieved but for representations designed to undermine the planning code should not be enforced. [see [2008] IEHC 374 (01 December 2008)].

Permission required for quarry development
Meath County Council -v- Sheils: High Court. Judgment delivered by Mr Justice Hedigan on November 13th, 2008

The intensification of quarrying at a quarry in Co Meath, including the use of blasting, constituted unauthorised development within the meaning of the Planning and Development Act, 2000 and the applicant, Meath County Council, was entitled to orders restraining the respondent from continuing, prohibiting any intensification of the work, and directing the removal of machinery from the site. [see [2008] IEHC 355 (13 November 2008)].

Personal Injuries Assessment Board must deal with solicitors
O’Brien -v- Personal Injuries Assessment Board: Supreme Court, Judgment delivered by Mrs Justice Denham on December 19th, 2008, Mr Justice Murray concurring.

If an applicant to the Personal Injuries Assessment Board (PIAB) wishes to have a legal representative, he or she is entitled to have one.…

A Christmas Contract Carol

23 December, 200823 December, 2008

| 1 Comment

| Cinema, television and theatre, Contract

It is an interesting phenomenon to observe a person’s name becoming a generic description. Take, for example, Shylock, who features in an earlier post on this blog. The name, with a lower-case initial, is defined by the Oxford English Dictionary as “an extortionate usurer … an abusive term for a moneylender”. Another – perhaps even more famous, and certainly seasonal – example is provided by Scrooge, the anti-hero in A Christmas Carol by Charles Dickens. Of this name, the OED says that it is used “to designate a miserly, tight-fisted person or killjoy” (here‘s an example from yesterday’s Irish Times).

This is all by way of introducing a post by Keith Rowley on ContractsProf Blog entitled Ebenezer Scrooge on Contract Formation. He sets out a conversation from the screenplay of a movie version of the story which does not seem to appear in the book. This is neither the first nor the only time that screenplays have taken liberties with this book, my favourite movie version certainly does. In this case, the conversation is added to illustrate Scrooge’s heartlessness at the beginning of the story (before his conversion to the spirt of Christmas at the end of the book).…

It could be you?

22 December, 200829 December, 2008

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| Contract, Irish Society

Lotto panel via the Lotto website. Be careful what you wish for. Many of us hope to win the national lottery; but for the members of a Mayo lotto syndicate, winning the €1,577,578 jackpot on 6 January 2001 did not bring the kind of positive changes they would have wished for. Four members collected the winnings; but a fifth man claimed that, although he was in arrears, he was still a member of the syndicate and thus entitled to a one-fifth share of the winnings. The matter was not resolved amicably, and it went to court. …

Shylock’s appeal: illegal contracts, specific performance and damages

21 December, 200810 February, 2016

| 3 Comments

| Cinema, television and theatre, Contract

Cover of New Yorker magazine, Dec 22 & 29, 2008. I learn from this week’s New Yorker (cover, left) that the Cardozo School of Law of New York’s Yeshiva University that Shylock was finally able to appeal the judgment rendered against him in Shakespeare’s The Merchant of Venice (advance notice | poster (pdf) | YU news story | photos).

A Jewish moneylender in Renaissance Venice, Shylock had made a loan to Antonio, in default of which he would be entitled to a pound of Antonio’s flesh. Antonio defaulted, and Shylock sought specific performance. But, after Portia’s advocacy on behalf of Antonio, the Duke of Venice ruled that Shylock was entitled to a pound of flesh but not a drop of blood, and refused both specific performance and damages in lieu. More than that, for seeking to take Antonio’s life, Shylock was disgraced and forced to convert to Christianity, and his property was forfeit (though half was ultimately settled upon his daughter Jessica, who had converted to Christianity and eloped with her suitor, Lorenzo). …

Vouching for Consumers

3 September, 200820 December, 2008

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| advertising, Consumer, Contract, Irish Society

The Consumer Protection Act, 2007 (also here), though it is the latest in a long line of piecemeal legislative forays into the area, nevertheless bids fair to provide substantial protection for consumers, provided both that the National Consumer Agency established under it is vigilant and active in that goal, and that it is allowed to be (for example, it may not survive in its current form calls (for example, by Fine Gael) for its abolition as part of the government’s cost-cutting desire to merge various statutory agencies). One important step was taken yesterday with the publication of draft guidelines for the retail sector. …

Dell’s Mistake

1 September, 200820 August, 2019

| 9 Comments

| advertising, Contract, Mistaken offers

It is the error everyone online dreams about – a full-price item for practically nothing; and it happened, in Chile. For those who remember the case of the mistaken flights last April, Andres Guadamuz tells us about a massive pricing error made by Dell on its Latin American website last June:

… One of Dell’s main features is the possibility of configuring computers by adding, removing or upgrading components. On 27 June 2008, this feature went wrong, and started subtracting money for an upgrade instead of adding it. … Apparently, some people in Chile found the mistake, and this being the Web 2.0 universe, left messages in Facebook and blogs advertising the gaffe, .. This resulted in an astounding 66 … times increase in sales in that day for Chile, and apparently thousands attempted to get the exploit (unofficially, 15 thousand laptops!). Needless to say, Dell did not fulfil the orders, and offered the affected customers a 15% discount in future sells. …

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