Date post: | 17-Dec-2015 |
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Where are we?
1. ¢
2. Formation – Offer/acceptance
3. “Policing” (Defenses; invalidation) Capacity Equity, Duress Fraud Unconscionability
4. Remedies
Alaska Packers
Sailors
K2: Alaska Contract
Work hard, do what the boss says
$100 plus piece rate
Is there anything new or extra coming from the sailors?
What were the circumstances of the renegotiation?
• Where did it take place?
• What were the bargaining positions of the parties?
“Asset Specificity”
• When “sunk cost” investments lock one party into a contract, make it difficult to recoup investment if the other party does not perform
§ 89. Modification Of Executory Contract
A promise modifying a duty under a contract not fully performed on either side is binding
(a) if the modification is fair and equitable in view of circumstances not anticipated by the parties when the contract was made; or
(b) to the extent provided by statute; or
(c) to the extent that justice requires enforcement in view of material change of position in reliance on the promise.