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Leading Cases

The casebook classics every 1L meets.

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  1. 1.Lucy v. Zehmer (Va. 1954) — what principle?

    Objective theory of contract: a party is bound by the outward expression of assent, even if they secretly claim to be joking, where a reasonable person would believe the offer was serious.

    Lucy v. Zehmer, 196 Va. 493 (1954)

  2. 2.Hawkins v. McGee (N.H. 1929) — the "hairy hand" case — illustrates which measure of damages?

    Expectation damages: the difference between the value of the hand as promised (a "perfect hand") and the hand actually delivered.

    Hawkins v. McGee, 84 N.H. 114 (1929)

  3. 3.Hadley v. Baxendale (1854) — test for consequential damages?

    Recoverable damages are those arising naturally from the breach, or those reasonably in the contemplation of both parties at the time of contracting as a probable result of breach.

    Hadley v. Baxendale (1854) 9 Exch 341

  4. 4.Jacob & Youngs v. Kent (N.Y. 1921) — the Reading pipe case — held what?

    Substantial performance: a trivial, non-wilful deviation (wrong brand of pipe) did not defeat the contract; damages were measured by diminution in value, not cost of replacement. Opinion by Cardozo J.

    Jacob & Youngs v. Kent, 230 N.Y. 239 (1921)

  5. 5.Sherwood v. Walker (Mich. 1887) — "Rose 2d of Aberlone" — doctrine?

    Mutual mistake: both parties believed the cow was barren; the mistake went to the very substance of the bargain, so the seller could rescind.

    Sherwood v. Walker, 66 Mich. 568 (1887)

  6. 6.Raffles v. Wichelhaus (1864) — the two ships "Peerless" — result?

    No contract: the parties attached materially different meanings to an ambiguous term and neither knew of the other's meaning, so there was no meeting of the minds.

    Raffles v. Wichelhaus (1864) 2 H & C 906