NEW  YORK    CONTRACT  LAW  

 Tricks  of  the  Trade  

Buy/Sell  Agreements    

Commercial/Residential  Real  Estate  Leases  

Contracts  Are  Not  Esoteric  Legal  Jargon.  Contracts  Pave  All  Avenues  Of  Life.    

Owner/Contractor  

Agreements    

Design  Development  Agreements  

Contracts  Are  Not  Esoteric  Legal  Jargon.  Contracts  Pave  All  Avenues  Of  Life.    

Operating  Agreements    

Talent  Agreements    

Partnership  Agreements  

 Insurance  Policies  

Contracts  Are  Not  Esoteric  Legal  Jargon.  Contracts  Pave  All  Avenues  Of  Life.    

Contracts  Are  Not  Esoteric  Legal  Jargon.  Contracts  Pave  All  Avenues  Of  Life.    

Credit  Card  Issuer  Agreements  

 Cell  Phone  Subscriber  Plans  

Contracts  Are  Not  Esoteric  Legal  Jargon.  Contracts  Pave  All  Avenues  Of  Life.    

Amusement  Park  Tickets    Cruise  Tickets    Theater  Tickets    Restaurant  Receipts    Auctions  

What  is  a  Contract?  •  A   contract   is   a   promise   or   set   of  

promises  for  the  breach  of  which  the  law   gives   a   remedy,   or   the  performance   of   which   the   law   in  some  way  recognizes  as  a  duty    

       –  Restatement  (Second)  of  Contracts  §1  

•  Kernel  of  Corn  •  NY  UCC  Article  2  governs                    the  sale  of  goods  •  Oral  v.  Written  •  Good  Faith  and  Fair  Dealing  

Have  I  entered  into  a  contract?  

Buying  Groceries  

Gifts  

Have  I  entered  into  a  contract?  

Nephew  Giving  Up  Gambling  for  Inheritance  

Have  I  entered  into  a  contract?  

Marriage  

Have  I  entered  into  a  contract?  

Contract  Implications  

Rights  and  Obligations  

To  Contract  or    Not  To  Contract?  

Practical  and  Political  Considerations  

To  Contract  or    Not  To  Contract?  

“A  verbal  contract  isn’t  worth  the  paper  it’s  written  on”    –  Samuel  Goldwyn    

Money  Involved  

To  Contract  or    Not  To  Contract?  

Labor  Involved  

“A  verbal  contract  isn’t  worth  the  paper  it’s  written  on”    –  Samuel  Goldwyn    

Untrustworthy  Party  

To  Contract  or    Not  To  Contract?  

“A  verbal  contract  isn’t  worth  the  paper  it’s  written  on”    –  Samuel  Goldwyn    

Unknown  Party  

To  Contract  or    Not  To  Contract?  

“A  verbal  contract  isn’t  worth  the  paper  it’s  written  on”    –  Samuel  Goldwyn    

Probable    Misunderstandings  

To  Contract  or    Not  To  Contract?  

“A  verbal  contract  isn’t  worth  the  paper  it’s  written  on”    –  Samuel  Goldwyn    

The  “Musts”  

•  Core  Material  Terms  •  Standard  Terms  

§  Choice  of  Law  §  Choice  of  Venue  §  Acts  of  God  

•  Signature  Lines  

Enforceability    •  Statute  of  Frauds •  Enforced  Against  Signatory  

•  Individual  v.  Corporation  •  Legal  Doctrines  

•  Impossibility  •  Illusoriness  •  Unconscionability  •  Duress  •  Waivers  (NY  GOL  §5-­‐326)  

•  Notarization  

Contract  Violations  Elements  of  Breach  of  Contract  

•  Valid  and  Binding  Contract  •  Performance  by  a  Party  

•  Failure  to  Perform  by  Other  Party  •  Proximate  Causation  

Material  Breach  v.  Substantial  Performance  1. Detriment  2. Beneait    

3. Innocent  Breach  4. Ease  of  Full  Performance  

Contract  Violations  

Ambiguities  Construed  Against  Drafter  Unequal  Bargaining  Power  

Intent  of  the  Parties  Extrinsic  Evidence  

Contract  Violations  

Remedies  •  Money  Damages  

•  Consequential  Damages  •  Incidental  Damages  •  Expectation  Damages  •  Reliance  Damages  •  Restitution  

•  Equitable  Relief  •  Likelihood  of  Success  •  Irreparable  Harm  •  Balance  of  Equities  

Summary  •  Pervasive  Instruments  •  Contract  Implications  •  Necessary  Terms  for  Ensuring  Enforceability  •  Breach  of  Contracts  and  Forms  of  Relief