Torts and contracts

Question 2

Traditional (1R) approach to torts

Answer 2

Governed by law of place where last event of tort occurred

This is almost always INJURY

Question 3

Governmental Interest Analysis: Torts

Answer 3

Courts examine purpose and policies to determine whether parties are truly interested

Conduct-regulating: states have interest when wrongful conduct occurs within territory, causes injury in territory, and injures state resident

Loss-shifting–states have interest when it would BENEFIT resident

Question 4

Second Restatement Approach: Torts

Answer 4

Apply most significant relationship test with 7 principles

List of contacts:
1) where injury occurred
2) where conduct causing injury occurred
3) domicile/residence/PPOB of parties
4) where relationship of parties is centered

Question 5

Second Restatement Approach: Torts Presumption

Answer 5

Rebuttable presumption that law of place of injury will apply

Question 6

Choice of Law: Contracts

Answer 6

Parties are free to choose law that will govern their transaction due to PARTY AUTONOMY (choice of law generally enforceable)

Question 7

Exception: when is contract choice of law not enforceable?

Answer 7

When validity of contract relies on choice of law (illegal subject matter, incapacity, or absence of formality)

Question 8

Second Restatement: Contract Validity for choice-of-law

Answer 8

Parties can choose law applying to validity if
1) chosen state has substantial relationship to parties/transaction
2)some other reasonable basis for choice

UNLESS chosen law would be contrary to fundamental policy w most significant relationship to issue

Question 9

How to treat K with ineffective choice of law provision

Answer 9

Apply general approaches to choice of law

Question 10

Contract validity: traditional approach to choice of law

Answer 10

Place of CONTRACTING will govern issues of formation/interpretation/validity

Place of contracting = where last act occurred (usually acceptance)

Question 11

Issues with contract performance: traditional approach

Answer 11

Issues related to performance (manner, sufficiency, excuse) governed by place of performance

Question 12

Contract Validity: Second Restatement significant relationship test

Answer 12

Determine which state has most significant relationship to K Using guiding principles, including
1) place of negotiation/performance
2) place where subject matter located
3) parties’ domiciles, incorporation

Question 13

Contract Validity: Second Restatement Presumption

Answer 13

Rebuttable presumption that when place of NEGOTIATION and PERFORMANCE are same, law of that state usually applies