Also known as: chances
Written by attorneys · grounded in primary & secondary sources — see below
A prospect or opportunity to obtain a benefit such as return performance under a contract or to avoid harm from negligent conduct.
Central Dynamics assigned its right to receive custom parts from Cascade Manufacturing to Cobalt Energy. Cascade Manufacturing showed that the substitution would require it to retool its production line for Cobalt Energy's different specifications and quality standards. The assignment was invalid because it materially increased the burden on Cascade Manufacturing.
Christine Castro crossed the street without looking while texting and was struck by Clifford Cox's vehicle. Cox had also been speeding. Because Castro's negligence contributed to the accident, her chance of avoiding harm through recovery was barred even though Cox's conduct occurred at the same time.
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Cedar Creek Farms assigned its right to payment from a buyer of produce to a third-party lender. The buyer demonstrated that the assignment would force it to deal with an unfamiliar creditor and alter its payment verification procedures. The assignment was ineffective because it materially impaired the buyer's chance of obtaining conforming goods.
Cameron Cruz leased farmland from Cascade Manufacturing under an agreement requiring the lessor to provide specialized irrigation maintenance. Cascade Manufacturing attempted to transfer its interest to Cedar Creek Farms. The transfer was invalid because it would substantially impair Cascade Manufacturing's chance of receiving the required personal services from the new owner.
Carmen Choi drove an injured neighbor to the hospital at high speed after an accident. The court considered the extent of the chance that the neighbor's life would be saved by the rapid transport when determining whether Choi's conduct was negligent.
Catherine Carter sold her right to receive lottery winnings to a finance company. The transaction created an account under Article 9 because the right to payment arose from a game of chance operated under state license.
An assignment materially impairs the chance when it forces the obligor to deal with a different party or alters verification and performance procedures in a way that increases burden or risk. The obligor must show the change is material rather than minor. Courts examine the specific contract duties and the practical effect of the substitution.
Contributory negligence bars recovery whether the plaintiff's negligence is antecedent, subsequent, or simultaneous with the defendant's. The rule applies unless the defendant had the last clear chance to avoid the harm. The timing of the negligent acts does not change the bar to recovery.
A transfer impairs the chances when the lease calls for significant personal services and the new party cannot or will not provide equivalent performance. The rule protects the non-transferring party from losing the benefit of a relationship that depends on the original party's unique skills or reliability. Valid contractual restraints on transfer can also prevent the impairment.
The utility of conduct is measured in part by the extent of the chance that the chosen action will advance or protect a socially valuable interest. A higher probability of benefit weighs in favor of finding the conduct reasonable. The test also compares that probability against the availability of a less dangerous alternative course of conduct.
…yield to the public welfare, although at times such injury may be great. The public benefit from publicity is so great, and the chance of injury to private character so small, that such discussion must be privileged." The court thus sustained the trial court's instruction as a correct statement of the law, saying: "In…