Contracts - Unusual Tytpes of Contracts

7/28/2019 Contracts - Unusual Tytpes of Contracts

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1 WITSUM Ch. I, 1007 Page 11 Witkin, Summary 10th (2005) Contracts , 1007, p. 1099

2011 Thomson Reuters. No Claim to Orig. US Gov. Works.

Supplement

Copyright (c) 2005, 2008 B.E. Witkin Article Sixth Testamentary Trust

WitkinSummary of California Law, Tenth Edition

B.E. Witkin and Members of the Witkin Legal Institute

Chapter I. ContractsXIX. UNUSUAL TYPES OF CONTRACTS

A. [ 1007] Organic Law of Association.

The relationship of unincorporated associations, such as labor unions and fraternal or professional societies,

with their members, is contractual: The contract consists of the constitution and bylaws of the association. (See

Mandracio v. Bartenders Union (1953) 41 C.2d 81, 85, 256 P.2d 927; Harris v. National Union of Marine Cooks &

Stewards (1950) 98 C.A.2d 733, 736, 221 P.2d 136; Bernstein v. Alameda-Contra Costa Med. Assn. (1956) 139

C.A.2d 241, 253, 293 P.2d 862;Jost v. Communications Workers of America (1970) 13 C.A.3d Supp. 7, 10, 91 C.R.

722;6 Am.Jur.2d (1999 ed.), Associations and Clubs 3, 21, 22.)

These contracts, however, are usually confined to the relationship between the individual and the association,

and do not impose obligations on one member to another. (SeeScott v. Lee (1962) 208 C.A.2d 12, 15, 24 C.R. 824.)

West's Key Number Digest,Contracts 7

****SUPPLEMENT****

1 Witkin, Summary 10th (2011 supp.) Contracts , 1007, p. 165

A. [ 1007] Organic Law of Association.

See 6 Am.Jur.2d (2008 ed.), Associations and Clubs 2, 20, 21.

ContentsIndex and Tables

1 WITSUM Ch. I, 1007

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B. [ 1008] Corporation Charter.

A corporation charter is a contract protected by the constitutional guarantee against impairment, but subject tothe state's constitutional reserved power. (See 8 Summary (10th), Constitutional Law, 1281; 9

Summary (10th), Corporations, 2.) And the relationship of corporation and shareholder is contractual; the contract

is contained in the articles, bylaws, and applicable statutes. (In re Mayellen Apartments (1955) 134 C.A.2d 298, 304,

285 P.2d 943;see 18A Am.Jur.2d (2004 ed.), Corporations 156 et seq.)

The bylaws are also a contract among the shareholders. (Casady v. Modern Metal Spinning & Mfg. Co. (1961)

188 C.A.2d 728, 732, 10 C.R. 790,13 Summary (10th),Equity, 47.)



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C. [ 1009] Federal Grant.

The acceptance of a federal grant under terms and conditions authorized by Congress creates a bindingcontract. (McDonald v. Stockton Metropolitan Transit Dist. (1973) 36 C.A.3d 436, 441, 111 C.R. 637 [federal

Government has authority to enforce its rights against transit district under such contract, and private person is not

entitled to seek performance by petition for mandamus].)




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Supplement





D. [ 1010] Published University Regulations.

An unsuccessful action for breach of contract, based on an insufficiently pleaded claim that scheduled lectures

and normal academic credit were not received, produced the following statement of a contract rule: The basic legal

relation between a student and a private university or college is contractual in nature. The catalogues, bulletins,

circulars, and regulations of the institution made available to the matriculan t become a part of the contract.

(Zumbrun v. University of Southern Calif. (1972) 25 C.A.3d 1, 10, 101 C.R. 499.) (See 19 Cal. Western L. Rev. 467

[Challenging Educational Fee Increases, Program Termination and Deterioration, and Misrepresentation of Program

Quality: The Legal Rights and Remedies of Students];51 A.L.R.3d 1003[liability of college to student enrolled in

course terminated prior to completion];46 A.L.R.5th 581[liability of private school or educational institution for

breach of contract arising from provision of deficient educational instruction]; 47 A.L.R.5th 1[liability of private

school or educational institution for breach of contract arising from expulsion or suspension of student].)

****SUPPLEMENT****

1 Witkin, Summary 10th (2011 supp.) Contracts , 1010, p. 165

D. [ 1010] Published University Regulations.

SeeKashmiri v. Regents of Univ. of Calif. (2007) 156 C.A.4th 809, 823, 67 C.R.3d 635[contract law applied to

students' claims against state university regarding university's increase in various student fees, where fee dispute did

not require inquiry into nuances of educational processes and theories, but rather required objective assessment;

citingZumbrun v. University of Southern Calif. (1972) 25 C.A.3d 1, 101 C.R. 499,text, p. 1100].



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E. [ 1011] Unconfirmed Arbitration Award.

An arbitration award that has not been confirmed or vacated has the same force and effect as a contract inwriting between the parties to the arbitration. (C.C.P. 1287.6; see Walter v. National Indem. Co.

(1970) 3 C.A.3d 630, 634, 83 C.R. 803[award becomes asset of recipient's estate if he or she dies]; 21 Williston 4th,

57:128 et seq.)

The purpose of the quoted language is to make clear that arbitration awards of this type are binding as contracts

even after the time for seeking their confirmation has expired. (Doyle v. Giuliucci (1965) 62 C.2d 606, 609, 43 C.R.

697, 401 P.2d 1,supra, 49; on judgment on an arbitration award as a contract, see supra, 115.)




END OF DOCUMENT
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F. [ 1012] Regulated Forms.

In recent years, a number of statutes have been enacted that specify the form of certain contracts or regulatetheir provisions. The general purpose of these statutes is to protect the public from overreaching by persons whose

economic power or technical knowledge make bargaining on an equal footing virtually impossible. (For a similar

judicial approach to contracts of adhesion, seesupra, 323.)

The statutes cover a variety of matters. The following list indicates the subjects of some of the more important

of these statutes and indicates where in this work they are discussed:

(1)Legibility. (Seesupra, 123;2 Summary (10th),Insurance, 32.)

(2)Motor vehicle sales. (See4 Summary (10th), Sales, 241 et seq.)

(3) Swimming pool sales. (See4 Summary (10th), Sales, 293.)

(4)Health and dance services. (See4 Summary (10th), Sales, 362.)

(5)Retail installment sales. (See4 Summary (10th), Sales, 272 et seq.).

(6)Miscellaneous consumer protection matters. (See4 Summary (10th), Sales, 295 et seq.)

(7)Door-to-door sales. (See4 Summary (10th), Sales, 329 et seq.)

(8)Automobile liability insurance policies. (See2 Summary (10th),Insurance, 162 et seq.)

(9) Fire insurance policies. (See 2 Summary (10th), Insurance, 131, 132; 4 Summary (10th), SecurityTransactions in Real Property, 82 et seq.)

(10)Automobile repairs. (See4 Summary (10th), Sales, 332.)

(11)Farm machinery repairs. (See4 Summary (10th), Sales, 332.)

(12) Professional malpractice insurance. (See Ins.C. 11580.01 [requiring notice that coverage is limited to
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7/7



claims made while policy is in force]; 6 Pacific L. J. 336.)

(13) Health care service plans. (See Health & Saf.C. 1340 et seq. [extended regulation and enforcement by

Commissioner of Corporations]; Schmidt v. Foundation Health (1995) 35 C.A.4th 1702, 1714, 42 C.R.2d 172

[Health & Saf.C. 1340 et seq.and related administrative regulations prohibit broker of health care service plans from

offering commission rebates to clients];California Med. Assn. v. Aetna U.S. Healthcare of Calif. (2001) 94 C.A.4th

151, 158, 114 C.R.2d 109[nonwaiver clause ofHealth & Saf.C. 1371did not preclude health plan from delegatingto intermediaries duty to make payments to doctors providing services to plan's enrollees; nonwaiver clause simply

meant that time limits had to be observed even when payment obligations have been delegated].)

(14) Invention development services. (See B. & P.C. 22370 et seq., [requiring various provisions including

notice of right to cancel, and statement that customer's potential patent rights may be adversely affected by any

attempt to commercialize idea or invention prior to filing patent application]; 7 Pacific L. J. 307.)

(15)Earthquake insurance. (SeeIns.C. 10081 et seq.[requiring that, before issuance of any residential property

insurance policy, insured be offered opportunity to obtain earthquake insurance].)

(16) Spanish translation of commercial contract. (Seesupra, 124.)



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Contracts - Unusual Tytpes of Contracts

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Transcript of Contracts - Unusual Tytpes of Contracts