Contract Modification, Waste Collection Agreement, and Legal Principles
Explore the fascinating case of Maher's waste collection contract modification, the city council's decisions, and legal principles like the UCC 2-209 and Bargain Theory in commercial contracts.
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Presentation Transcript
Angel v. Murray Richard Warner
Facts In March 1964, Maher and the city entered into a five- year contract for Maher to collect waste for $137,000. In June 1967, Maher requested an additional $ 10,000 per year from the city council because there had been a substantial increase in the cost of collection due to an unexpected and unanticipated increase of 400 new dwelling units. Maher's testimony, which is uncontradicted, indicates the 1964 contract had been predicated on the fact that since 1946 there had been an average increase of 20 to 25 new dwelling units per year.
Facts After a public meeting of the city council where Maher explained in detail the reasons for his request and was questioned by members of the city council, the city council agreed to pay him an additional $ 10,000 for the year ending on June 30, 1968. Maher made a similar request again in June of 1968 for the same reasons, and the city council again agreed to pay an additional $10,000 for the year ending on June 30, 1969. This is a key fact. Why?
Modern Law UCC 2-209 A modification of a contract is binding without consideration. Official comment: the modification must be sought in good faith and for commercially reasonable purposes. Restatement (Second) Contracts, Section 89. A modification of a contract is binding if the modification is fair and equitable in view of circumstances not anticipated by the parties when the contract was made.
Bargain Theory Did the promisor make the promise in order to get a promise or performance in return? Yes No Did the promisee provide an explicit or implicit promise or performance in return? Yes Promissory estoppel? No Yes No Enforceable Moral obligation or other exception? Either no pre-existing duty, or an exception to the pre-existing duty rule? Yes No consideration No Yes No Too private? Yes No consideration Enforceable Unenforceable No Unenforceable There is consideration
