Extrinsic Evidence to Show Context

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Sanders v. FedEx Ground Package System, Inc.; The implied covenant of good faith and fair dealing protects the reasonable expectations of the parties to a contract arising from its terms, and may be shown by extrinsic evidence.

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Lease or Sale

Gibraltar Financial Corp. v. Prestige Equipment Corp.; court must consider economic reality of transaction to detemine whether it was a lease or a sale subject to a security agreement.

Perfected Status

In re Wild West World, L.L.C., Debtor; bankrupcty; notice to creditors; claimed security interest requires timely filing in order to obtain perfected status.

Undue Influence

Kelly v. Provident Life & Accident Insurance Co.; Undue influence is persuasion that tends to be coercive in nature and that overcomes the will without convincing the judgment.

Detrimental Reliance

Frank Dixon v. Wells Fargo Bank, N.A.; promissory estoppel will be applied when the promisor makes a promise that the promisee reasonably and foreseeably relies on to his or her detriment.

Gift is Not Consideration

Pennsy Supply, Inc. v. American Ash Recycling Corp.; The bargain theory of consideration does not actually require that the parties bargain over the terms of the agreement; rather, a promise and a reciprocal conventional inducement.

Part Performance

Beaver v. Brumlow; if oral contract not enforceable under the Statute of Frauds has been performed to such an extent it would be inequitable to deny enforcement, may bar the Statute of Frauds defense; part performance; specific performance.

Supplementary Terms

C. Itoh & Co. (America) Inc. v. Jordan Int'l Co.; The terms of a contract are the writings of the parties, along with supplementary terms incorporated by operation of law; gap-filler provisions of Article Two of the U.C.C.; additional terms.

Penalty Clause Damages

Lake River Corp. v. Carborundum Co.; liquidated damages clauses are enforceable but penalty damages clauses are not enforceable.

Third Party Beneficiary Standing

Sisney v. State; a contract made expressly for the benefit of a third person may be enforced by that person, but only when the intent to make the contract inure to the benefit of the third party is clearly manifest.

Prevention Doctrine Rule

Johnson v. Coss; the prevention doctrine operates as an exception to the general rule than one has no duty to perform under a contract containing a condition precedent until the condition occurs.

Moral Obligation as Consideration

Mills v. Wyman; A promise based only on a moral obligation is made without consideration and not enforceable.

Moral Obligation is Consideration

Webb v. McGowin; a moral obligation is sufficient consideration for a subsequent promise if the promisor has received a material benefit, even if the promisor had no original duty or liability.

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