Legal Articles

Contracts: Terminating Third-Party Beneficiary Rights

Certain third-party beneficiaries to a contract may sue for breach of contract. This is true even though they are not a signer to the contract. There are three types: donee, creditor, and incidental. Donee and creditor beneficiaries may sue as a third-party for breach of contract, but incidental beneficiaries cannot. There are certain situations when…

Making of a Contract, Long-Arm Statute

Missouri can often (but not always) hear disputes about contracts made within Missouri. Section 506.500, RSMo. Specifically, Missouri’s “long-arm” statute permits the exercise of jurisdiction when the dispute relates to the “making of any contract within this state.” Id. The exercise of jurisdiction must also meet certain federal constitutional requirements. When is a contract made within this…

Contracts, Agreements to Agree

Breach of contract requires: (1) existence and terms of a contract, (2) plaintiff fully performed under the contract, (3) breach by defendant, and (4) damages. Keveney v. Missouri Military Academy, 304 S.W.3d 98, 104 (Mo. 2010). To prove the existence and terms of a contract, there must be: (1) competency of the parties to contract;…

Economic Loss Doctrine

Contract claims and tort claims are generally separate theories of recovery. Indeed, “the mere failure to perform a contract cannot serve as the basis of tortliability.” State ex rel. William Ranni Assoc., Inc. v. Hartenbach, 742 S.W.2d 134, 140 (Mo.1987). In a similar vein, or stated differently, the economic loss doctrine prohibits a plaintiff from…

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