QST LA 245 Lecture Notes - Lecture 1: American Airlines, Parol Evidence Rule, Vagueness
Document Summary
Title: capital letters is standard, traditional contracts use archaic words. Definitions: names of the parties are defined. Covenants: what are the parties agreeing to do, heart of the contract, failure to perform covenant (promise) can lead to a breach. Jones brother construction to expand aa portion of chicago airport. Accepted bid from quake construction (letter of intent), but had the ability to cancel letter of intent. Jones hired another company, but quake sued for the money they used to prepare for the intended job, arguing that this is a contract because there is a cancellation clause. Jones argues that the letter is not a contract, it refers to a contract that is to come. Court ruled that the letter of intent is not a valid contract, although letters of intent may be enforceable, such letters are not enforceable unless the parties intend this to be. This intent letter has the cancellation clause, therefore parties have no intent.