Uniform Commercial Code Essay

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The sources of law that are applicable to this case are the Inform Commercial Code and Willard v Taylor 557 (1989). The Uniform Commercial Code is a legislation that governs business transactions while Willard v Taylor is a case that concerns breach of contract. The Uniform Commercial Code will be binding in this case because the elements of contract formation are contained in this case. The contract that was breached by Beneficial Innovations was constructed per the provisions of the Uniform Commercial Code and, therefore, the applicable principles in determining whether there was a breach of contract can be found in this code. The Uniform Commercial Code has been promulgated in several US states and this makes its application binding in commercial …show more content…

The initial contract between Google and Beneficial Innovations provided that Beneficial would not bring patent infringement claims against Google or its customers. When Beneficial brought a claim for infringement of patents by Google‘s customers, it breached the agreement it had entered into agreeing not to sue Google or its customers. This breach violated the trust that had been established when the contract was formed. The claim by Beneficial for damages also placed inappropriate charges on Google as the action was against the contract. Under duty based ethics, the outcome in this case would be to find Beneficial Innovations in breach of contract as allowing them to collect from the patent infringement claims would be harmful to Google. Duty based ethics require that if a party could be injured, then corrective measures should be taken to eliminate the harm. Beneficial‘s actions are harmful and finding them in breach of contract would correct the breach by detering them from further infringement. On the other hand, under the outcome based ethics an outcome in favor of Google would be appropriate. Outcome based ethics require that the outcome any event should yield the greatest good for the greatest number. Beneficial brought an infringement claim against several Google customers. In respect to this case, finding Beneficial liable for breach of contract would yield a greater good for …show more content…

In arriving at its decision the court observed that Beneficial went back on the terms of the contract it had entered into with Google. Google had previously entered into a contract with Beneficial where the two parties had reached an agreement which included protection of Google and it's customers from any infringement claims by Beneficial. Beneficial‘s actions were in breach of contract and Google was entitled to damages. The court thetrfore found Beneficial innovations in breach of contract and were required to pay minimal damages of $1 to Google. The outcome in this case will be binding on all similar cases filed in the same court. The outcome will also be binding on all courts below the District court and only be advisory in superior courts. The decision will also be binding in cases with similar facts in lower courts in other states. The outcome is also advisory to other higher courts in other states. The outcome of the court was appropriate in this case as a breach of contract neccesitates an award of damages for the injured party. Allowing a party to recover damages for breach of contract puts the injured party at a position they would have been if the breach had not occured. An award of damages also deters the other party from any further breaches of the contract. In this case awarding Google nominal damages of $1 does not put the party

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