Editing Contracts Ayres/9th ed. Outline
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***** (3) modification is fair and equitable | ***** (3) modification is fair and equitable | ||
**** And must be voluntary | **** And must be voluntary | ||
*** | *** Alaska Packers' Association (1902) | ||
**** FACTS: Refused to continue fishing while at sea unless raise. No replacements so captain agrees to raise without them agreeing to do more time working. | **** FACTS: Refused to continue fishing while at sea unless raise. No replacements so captain agrees to raise without them agreeing to do more time working. | ||
**** RULE: Modifying contract must bear new consideration. Can’t just promise to do exact same thing as already legally bound to do by prior promise (no new detriment to promissee) | **** RULE: Modifying contract must bear new consideration. Can’t just promise to do exact same thing as already legally bound to do by prior promise (no new detriment to promissee) | ||
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***** Duress/coercion -- Even if there was consideration, the new contract was made under duress (eg ship couldn’t get cargo profit without labor). So refusal to pay later not breach of contract. | ***** Duress/coercion -- Even if there was consideration, the new contract was made under duress (eg ship couldn’t get cargo profit without labor). So refusal to pay later not breach of contract. | ||
**** Remedy = modification not enforceable. If employer sued – not clear damages because hard to measure lost profits– expectation damages (and workers probability couldn’t pay | **** Remedy = modification not enforceable. If employer sued – not clear damages because hard to measure lost profits– expectation damages (and workers probability couldn’t pay | ||
*** | *** Angel v. Murray (1974) | ||
**** FACTS: D paid an extra $10,000/yr to a trash collector under contract by the city (P) due to an unexpected increase of 400 dwelling units. Guy already contracted to clean ALL trash. ''Is the modified contract supported by consideration? Yes.'' | **** FACTS: D paid an extra $10,000/yr to a trash collector under contract by the city (P) due to an unexpected increase of 400 dwelling units. Guy already contracted to clean ALL trash. ''Is the modified contract supported by consideration? Yes.'' | ||
**** RULE: Modification of contract is valid if '''unexpected difficulties''' arise during course of performance + parties agree voluntarily (not under duress) to modify it. | **** RULE: Modification of contract is valid if '''unexpected difficulties''' arise during course of performance + parties agree voluntarily (not under duress) to modify it. |