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Letters of Intent
Letters of Intent Cartoons

Letters of Intent

Empro Manufacturing Co., Inc. v. Ball-Co Manufacturing, Inc.; an agreement that is made subject to a later agreement is not sufficiently definite to be a binding contract.
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Related Cartoons

Perfected Status
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.
Cross-Collateral
Cross-Collateral
In re Zaochney; A dragnet clause or cross-collateralization clause that provides that collateral in one transaction will be security for other obligations is enforceable.
Premises Liability
Premises Liability
Flippo v. Mode O'Day Frock Shops of Hollywood; implied warranty of merchantability; defect that attaches itself to product is not product defect or breach of warranty.
Prevention Doctrine
Prevention Doctrine
Berry v. Time Insurance Co.; implied covenant of good faith and fair dealing; duty of good faith; duty to prevent injury.
Four Corners Rule
Four Corners Rule
Hemenway v. Peabody Coal Co.; The meaning of a contract must be found within its four corners; four corners rule.
Mutual Mistake
Mutual Mistake
Tracy v. Morell; even when there is no fraud, there may be mutual mistake; where both parties share a common false assumption about a vital fact upon which their bargain is based, the transaction may be avoided.
Contract Amendment
Contract Amendment
Beneficial National Bank, U.S.A. v. Obie Payton; when the parties' original agreement specifically permits amendments, new terms may be added rather than just changes existing terms.
Third Party Beneficiary Not Explicit
Third Party Beneficiary Not Explicit
Detroit Institute of Arts Founders Society v. Rose; A contract may create an obligation to a third-party without containing express language creating that obligation. Incidental benefit to third party not enough.
Windfall Damages
Windfall Damages
H-W-H Cattle Co., Inc. v. Schroeder; Under the Uniform Commercial Code, a buyer has two options when the seller fails to deliver: (1) the buyer may "cover" by making a good faith substitute purchase; or (2) recover damages for non-delivery.
Moral Obligation as Consideration
Moral Obligation as Consideration
Mills v. Wyman; A promise based only on a moral obligation is made without consideration and not enforceable.
Pre-Contractual Misrepresentations
Pre-Contractual Misrepresentations
Snyder v. Lovercheck; a perpetrator of fraud cannot close the lips of his innocent victim by getting him blindly to agree in advance not to complain against it as a matter of public policy.
Moral Obligation is Consideration
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.