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Penalty Clause Damages
Penalty Clause Damages Cartoons

Penalty Clause Damages

Lake River Corp. v. Carborundum Co.; liquidated damages clauses are enforceable but penalty damages clauses are not enforceable.
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U.C.C.
U.C.C.
Central Washington Refrigeration, Inc. v. Barbee; Uniform Commercial Code; indemnity actions are governed by separate statute of limitation; implied right of indemnity; separate equitable cause of action; UCC.
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.
U.C.C. Filler
U.C.C. Filler
Northrop Corp. v. Litronic Industries; mirror image rule; common law mirror image rule does not apply to U.C.C. contracts; U.C.C. filler used when materially different terms in offer and acceptance.
Online Agreements
Online Agreements
Specht v. Netscape Communications Corp.; clicking on a DOWNLOAD button does not communicate assent to contractual terms if the offer did not make clear; inquiry notice; constructive notice.
Material Alteration of Contract
Material Alteration of Contract
Bayway Refining Co. v. Oxygenated Marketing & Trading A.G.; the burden of proving that additional terms would be a material alteration of the contractual obligation is on the party who objects; surprised party.
Supplementary Terms
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.
Infancy Doctrine
Infancy Doctrine
Douglass v. Pflueger Hawaii, Inc.; the general rule that contracts entered into by minors are voidable does not apply in the employment context.
Forebearance as Consideration
Forebearance as Consideration
Dyer v. National By-Products, Inc.; Forbearance to assert a claim or defense that proves to be invalid is consideration if the forbearing party believes that the claim or defense may fairly be determined to be valid.
Prevention Doctrine Rule
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
Moral Obligation as Consideration
Mills v. Wyman; A promise based only on a moral obligation is made without consideration and not enforceable.
Implied in Law Contract
Implied in Law Contract
Vertex, Inc. v. City of Waterbury; unjust enrichment requires (1) that the defendants were benefited, (2) that the defendants unjustly did not pay the plaintiffs for the benefits, and (3) that the failure of payment was to the plaintiffs' detriment.
Moral Obligation from Material Benefit
Moral Obligation from Material Benefit
Webb v. McGowin; the law recognizes a distinction between a promisor's moral obligation that results from a feeling of ethical obligation and one that results from conferring a material benefit to the promisor.