Introduction to the Law of Contracts

Welcome and Course Overview

This course is titled "American Common Law System One" and will be taught by Professor Robert A. Williams Jr. The focus of Class One will be on "Promises, Expectations, and a Hairy Hand: Introduction to the Law of Contracts." Students are expected to have reviewed the case of Hawkins v. McGee, which is available on the course platform (d2l), along with accompanying notes for class discussion. A quiz comprising short answer and multiple choice questions on Hawkins v. McGee will take place during class.

Preparation for Class

Students are advised to look up any unfamiliar terms encountered during their case reading using a dictionary, as these terms may be included in the quiz. This mirrors the approach lawyers take when confronting unfamiliar legal terms or definitions.

Introduction to Contracts

Definition of Contract

A contract is defined as a legally binding agreement. The classification of an agreement as a contract primarily depends upon the determination made by a court or the parties' acknowledgment of the agreement's binding nature.
The dynamic nature of contracts varies widely based on different situations and cultural contexts.

Examples of Contracts

Handshake: The presence of a handshake may constitute a contract, but its enforceability is contingent upon the specifics of the agreement and context.
Bribes: A bribe generally is not recognized as a valid contract.
Oral Agreements: An informal agreement, such as a high-five at the end of a successful job interview, raises questions regarding its status as a contract. Different cultures may interpret gestures differently, affecting contract validity.
Signed Documents: Whether a document needs to be signed to constitute a contract remains a significant inquiry in contract law.

Factors Influencing Contract Validity

The legal analysis of whether a contract exists involves examining various factors and applying legal methods learned in law school.
Issues of promises made, and whether they are enforceable, determine if the legal system will intervene and enforce the agreement through remedies or performance obligations.

Importance of Promises

Role of Promises in Contracts

Enforceable Promises: Not all promises are enforceable. For example, a conditional promise such as an incentive for academic performance (e.g., "if you get an A, I’ll give you $5") challenges the enforceability of such arrangements under contract law.
The essential question is whether a law court would uphold a promise as a legally binding obligation, and under what circumstances it would enforce damages.

Expectation Damages and Breach of Contract

When analyzing a breach of contract, the court seeks to determine what parties could expect under the contract terms. The common redress for breach of contract typically involves damages, which aim to compensate the injured party.
In Hawkins v. McGee, the case exemplifies these principles as it delves into the calculation of expectation damages.

Initial Class Focus

Today, the class will examine how to identify key facts in a case and how those facts relate to contractual disputes, specifically looking at Hawkins v. McGee and the significance of expectation damages in the common law system.

Context of Hawkins v. McGee

Analysis of Expectations in Contracts

The case involves examining the expectations formed between a doctor (the defendant) and a boy (the plaintiff) regarding a surgical procedure. The key analysis revolves around whether the parties established legally recognizable expectations.
The court deploys a two-step approach: determining if there was indeed a breach of contract and subsequently evaluating the methods of calculating damages resultant from that breach.

Calculating Expectation Damages

The law aims to place the injured party into the position they would have occupied if the contract had been fulfilled. The measure of recovery in contract law focuses on what the defendant should have provided to the plaintiff, considering the purported values involved in the agreement.
Consequently, Hawkins v. McGee addresses the calculation of damages based on the difference between what was promised (a functional, healthy hand) and the current state of the subject (the hand post-surgery).

General Rule on Damages

It is established that monetary recovery is the primary method of enforcing contracts in common law, where the parties would not be physically compelled to fulfill contractual obligations. Instead, a financial remedy provides restitution for the injured party's loss.

Understanding Contracts through Social Relationships

Contracts often emerge from the myriad social connections we share—whether familial, professional, or commercial. For example:

Parental Promises: A father may promise inheritance terms towards his offspring that create relational obligations.
Interpersonal Agreements: Friends may have informal agreements that can evolve into binding contracts if specific conditions are met.
Commercial Exchanges: These highlight the role of promises in transactions including buying/selling, such as the expectations tied to delivery dates.
The nature of these social relationships, promises, and exchanges plays a critical role in determining the enforceability of contracts.

Key Legal Questions

Common inquiries posed by contract law include assessing whether the parties behaved in ways that created legally recognizable expectations and if consideration was present within the agreement.
Lawyers engage in a critical analysis of these factors when establishing the legitimacy of a contract in court, particularly in cases such as Hawkins v. McGee.

Conclusion of Class One

In summary, contracts are underpinned by social relationships and expectations, which necessitate a detailed examination of conduct, promises made, and the enforceability of agreements within a legal framework.
Students will delve deeper into these principles through further analyses of Hawkins v. McGee and additional case studies throughout the course, aiming to develop competency in recognizing legally binding contracts and the implications of breaches thereof.

Expectations Moving Forward

Students are encouraged to actively participate by considering how various scenarios presented may relate back to contract law principles outlined in this class.
Preparedness for the upcoming quiz will entail a solid grasp of the facts, parties involved, and the underlying contractual obligations reflected in Hawkins v. McGee.