Welcome to Assignment 4
This assignment wraps up contract law fundamentals with three crucial topics: when contracts must be in writing (Statute of Frauds), how courts interpret contracts (including ambiguity rules critical for insurance), and how contracts end through performance, breach, or impossibility. This is one of the densest assignments — know the condition types and breach remedies cold for the exam.
Exam Alert!
Key topics: 6 contracts requiring writing, parol evidence rule exceptions, contra proferentem (ambiguity against the drafter/insurer), 3 types of conditions, anticipatory breach, and compensatory vs. consequential vs. punitive damages.
What You Will Learn
1. The Statute of Frauds — 6 contracts that must be in writing
2. The Parol Evidence Rule and its 4 exceptions
3. How courts interpret contracts (priority rules, ambiguity, contra proferentem)
4. Assignments and third-party beneficiary rights
5. How contracts are discharged (performance, impossibility, frustration)
6. Three types of conditions and types of breach with their remedies
Assignment Parts
Statute of Frauds & Parol Evidence
6 contracts that must be in writing, insurance and the statute of frauds, the parol evidence rule, and its 4 exceptions.
Interpretation & Third-Party Rights
Plain meaning, contra proferentem, contradictory terms priority, assignments, creditor/donee/incidental beneficiaries.
Discharge, Conditions & Breach
Performance, impossibility, frustration, 3 condition types, breach types, damages (compensatory, consequential, punitive), equitable remedies.
Quick Reference Summary
Statute of Frauds
6 contract types must be in writing. Most P&C policies exempt (1 year or less).
Parol Evidence Rule
Written contract governs. Exceptions: incomplete, ambiguous, fraud/mistake, condition precedent.
Contra Proferentem
Ambiguity interpreted against the drafter. In insurance, against the insurer.
3 Conditions
Precedent (triggers duty), Concurrent (simultaneous), Subsequent (extinguishes duty).
Anticipatory Breach
Breach announced before performance due. Aggrieved party can sue immediately.
Damages
Compensatory (make whole), Consequential (indirect), Punitive (punish), Liquidated (pre-agreed).