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A Theory of Contract Law: Empirical Insights and Moral Psychology PDF

349 Pages·2011·1.688 MB·English
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a theory of contract law: empirical insights and moral psychology This page intentionally left blank A Theory of Contract Law: Empirical Insights and Moral Psychology by Peter A. Alces Rita Anne Rollins Professor of Law the college of william & mary school of law 1 1 Oxford University Press, Inc., publishes works that further Oxford University’s objective of excellence in research, scholarship, and education. O xford New York Auckland Cape Town Dar es Salaam Hong Kong Karachi Kuala Lumpur Madrid Melbourne Mexico City Nairobi New Delhi Shanghai Taipei Toronto With offi ces in Argentina Austria Brazil Chile Czech Republic France Greece Guatemala Hungary Italy Japan Poland Portugal Singapore South Korea Switzerland Th ailand Turkey Ukraine Vietnam Copyright © 2011 by Oxford University Press, Inc. Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York 10016 Oxford is a registered trademark of Oxford University Press Oxford University Press is a registered trademark of Oxford University Press, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press, Inc. ______________________________________________ Library of Congress Cataloging-in-Publication Data Alces, Peter A., 1956- A theory of contract law : empirical insights and moral psychology / Peter A. Alces. p. cm Includes bibliographical references and index. ISBN 978-0-19-537160-4 (hardback) 1. Contracts. 2. Contracts–Philosophy. I. Title. K840.A946 2011 346.0201–dc22 ______________________________________________ 1 2 3 4 5 6 7 8 9 Printed in the United States of America on acid-free paper Note to Readers Th is publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is based upon sources believed to be accurate and reliable and is intended to be current as of the time it was written. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional services. If legal advice or other expert assistance is required, the services of a competent professional person should be sought. Also, to confi rm that the information has not been aff ected or changed by recent developments, traditional legal research techniques should be used, including checking primary sources where appropriate. (Based on the Declaration of Principles jointly adopted by a Committee of the American Bar Association and a Committee of Publishers and Associations.) You may order this or any other Oxford University Press publication by visiting the Oxford University Press website at www.oup.com For Kelli, My inspiration This page intentionally left blank Contents Premises (and equivocations) xi Acknowledgements xv Chapter One: Failure of Normative Contract Th eory 1 A. Th e Landscape 1 B. Human Agency 4 C. Th eory’s Job 4 D. An Alternative Sense of Th eory 11 Chapter Two: Constituents of Canonical Status 13 A. Constitution of a Contract Canon 14 B. Constituents of Canonical Status 15 C. Th e Literary Analogy 17 D. What We Read 18 E. Why We Read 19 F. Th e Canon Sets Limits 21 G. Achieved Anxieties 22 H. What We Are Looking For 23 I. Th e Th ree Phases of Contract Doctrine 24 Chapter Th ree: Contract Formation Doctrine 27 A. Raffl es v. Wichelhaus 28 B. Lucy v. Zehmer 31 C. Sherwood v. Walker 35 D. Hawkins v. McGee 3 9 E. Carlill v. Carbolic Smoke Ball Co. 40 F. ProCD, Inc. v. Zeidenberg 42 G. Mills v. Wyman 53 vii viii Contents H. Hamer v. Sidway 58 I. Allegheny College v. National Chautauqua County Bank 60 J. Wood v. Lucy, Lady Duff Gordon 63 K. Hoff man v. Red Owl Stores, Inc. 67 L. Dickinson v. Dodds 70 Chapter Four: Th eory of Contract Formation 75 A. Off er and Acceptance: Th e Objective–Subjective Tension 76 B. Mistake 85 C. Th e Quid Pro Quo Requirement 93 C hapter Five: Contract Performance Doctrine 115 A. Jacob & Youngs, Inc. v. Kent 115 B. Williams v. Walker-Th omas Furniture Co. 122 C. Henningsen v. Bloomfi eld Motors, Inc. 129 D. Taylor v. Caldwell and Krell v. Henry 134 E. Lawrence v. Fox1 39 F. Alaska Packers’ Association v. Domenico 144 G. Pacifi c Gas & Electric Co. v. G. W. Th omas Drayage & Rigging Co. 148 Chapter Six: Th eory of Contract Performance 154 A. Unconscionability 156 B. Impossibility, Impracticability, and Frustration 170 C. Modifi cation 182 D. Th ird Parties 191 E. Th e Parol Evidence Rule 195 Chapter Seven: Contract Enforcement Doctrine 202 A. Peevyhouse v. Garland Coal & Mining Co. 203 B. Hoff man v. Red Owl Stores 209 C. Ricketts v. Scothorn 211 D. Britton v. Turner 215 E. Rockingham County v. Luten Bridge Co. 222 F. Hadley v. Baxendale 225 G. Security Stove & Manufacturing Co. v. American Railway Express Co. 233 Chapter Eight: Th eory of Contract Enforcement 237 A. Th e Limits of Liability 237 B. Estoppel-Based Liability 258 Contents ix Chapter Nine: Toward an Empirical Morality 268 A. Th e Limits of the Deontic–Consequentialist Dichotomy 274 B. Moral Psychology 276 C. Th e Limits of Normativity: Only So Much Doctrine Can Do 289 Appendix 293 Bibliography 311 Index 321

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