The "Hairy Hand" case is a landmark decision in contracts for several reasons. You will note that, at pg. 117 (noted on the left margin), the Justice states that, "Authority for any specific rule of damages in cases of this kind seems to be lacking, but when tested by general principle and by analogy, it appears that the foregoing instruction was erroneous." In other words, there was no binding precedent for how to calculate damages for the failure to deliver on a contract for surgery. The trial court measured damages according to pain and suffering, and "positive ill effects" that resulted on the hand from the failed surgery (i.e., he made it worse). The New Hampshire Supreme Court held that trial court erred in calculating damages based on an injury, and instead should have calculated damages for a breached contract.

Section I:

A. What factors did the N.H. Supreme Court use to decide that this was a contract and not just an opinion?

B.Why did the N.H. Supreme Court believe that pain and suffering should not be an element of damages to the contract?

Section II:

A.What analogy did theN.H. Supreme CourtCourt adopt to determine the damages since there was no binding precedent involving anatomy?

B. Do you think that analogy is fully accurate? Why or why not?