American Contract Law for a Global Age, 2017a

damages. The notice of Kant’s action came altogether too late to be called reasonable.
That term is a relative one. Its meaning is affected by the circumstances under which
it is called into use. E. M. Loew’s Enterprises, Inc. v. Surabian, 153 A.2d 463 (1959).
The notice was not timely in this case. The court did not err in rendering judgment
for D’Addario.
There is no error.
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Review Question 7. “Notice” is a condition precedent common to many
contracts, including in many liability insurance policies. To what extent is a
requirement of notice a trap for the unwary rather than an independently valuable
right for the party with the right to be put on notice? Read UCC § 2-607 for a statutory
example of notice as a condition precedent to a breach of contract claim. As a
malpractice-avoiding lawyer handling contracts cases, should you be more afraid of
section 2-607 or of the general breach-of-contract statute of limitations (which is
commonly four years following accrual of the claim)?
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Problems
Problem 19.1
Nephew, who is 18, has been admitted to several colleges but is thinking about
bypassing college to become a pottery maker. Uncle promises Nephew that if he in
fact goes to college instead, and graduates, Uncle will give him $50,000. He adds that
if Nephew graduates from Uncle’s alma mater, Hearst College (where he has been
admitted), he will give him $100,000. Nephew decides to enroll at Hearst, but does
not like it and transfers to the University of California, Sunnydale. Uncle makes no
objection to him switching schools, instead telling him that Hearst “may not be for
everybody.” Nephew graduates from UC Sunnydale, whereupon Uncle gives him
$50,000. Nephew asks for the whole $100,000, claiming that Uncle waived the
condition. What result and why?
Problem 19.2
Owner hires Architect to design and supervise construction of a small office
building. Architect prepares the necessary plans and specifications. Owner hires
Contractor at a total bid of $8 million to build the project. The Owner-Contractor
agreement specifies that Contractor will take its instructions from Architect on the
project. It also provides that three quarters of the total contract price will be paid out
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396 CHAPTER VI: TERMS AND INTERPRETATION