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Introduction to The law of contracts
Introduction to The law of contracts
Introduction to The law of contracts
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Contract law controls most agreements between parties, whether oral or written, that involve goods, services, money, employment contracts and real estate deals. In order for a contract to be valid, there must be a few elements that are satisfied. There must be a negotiation, an agreement which consists of an offer and acceptance of the offer, consideration, capacity, and legality. The sources of law that governs contracts today consist of two bodies of law, Article 2 of the Uniform Commercial Code, also known as the UCC, and the common law of contracts. Determining what body of law applies to a contract dispute is an important first step in analyzing that problem. The Uniform Commercial Code, or UCC, is a statutory law that was adopted in every …show more content…
Article 2 expressly applies only to contracts for the sale of goods [UCC, 2-102]. The essence of the definition of goods in the UCC [UCC, 1-105] is that goods are tangible, movable personal property. (Mallor, 2016, p. 326) In relation, contracts for the sale of such items as motor vehicles, books, appliances, computers, software's, and clothing, are covered by the UCC Article 2. The scope of Article 2A states this Article applies to any transaction, regardless of form, that creates a lease. [UCC, 2A-102] Contracts that discuss the lease of a car, equipment, or property fall under the UCC Article 2A. Article 2 was written so that the transactions between businesses would be more elastic than the mirror image rule, in common law, to allow flexibility making contract formation easier to …show more content…
Lewis is a case in which the mirror image rule is applied and gives an example of common law governing a contract. The Prides owned a house located in Nodaway County. They listed their house for sale when they moved to a farm and found a tenant to rent the house until it sold. They received an offer from Lewis to purchase the house for $55,000. The initial offer from Lewis was rejected. The Prides realtor presented them with the second contract, already signed by Lewis and his realtor. This contract that was signed by Lewis on April 9, 2003, which stated a closing date of May 15, 2003. The Prides had changed the date, by hand, to June 1, 2003, and signed the contract on April 9, 2003. The Prides and their realtor initialed the change however Lewis did not. On the day of closing, Lewis nor his realtor had appeared. When the closing did not occur, the Prides sent him a letter letting him know of his default and relisted the house with a realtor. The house sold for $40,000 in June 2004 and they were unable to find a tenant for that entire year. The Prides sued for breach of contract, seeking the damages for the difference between the $55,000 and the $40,000 it sold for. The trial court entered judgment in favor of the Prides, however, Lewis appealed. The appellate court Judge, Judge Presiding Ulrich states, "A contract does not exist without a definite offer and a ‘mirror-image' acceptance. Any acceptance that includes new or variant terms for the offer presented
This case study examines various real estate contracts – the Real Estate Purchase Contract (REPC) and two addendums labeled Addendum No. 1 and Addendum No. 2 – pertaining to the sale of 1234 Cul-de-sac Lane in Orem, Utah. The buyers in this contract are 17 year old Jon D’Man and 21 year old Marsha Mello; the seller is Boren T. Deal. The first contract created was Jon and Marsha’s offer to purchase Boren’s house. This contract was created using the RESC form, which was likely provided by their real estate agent as it is the required form for real estate transactions according to Utah state law. The seller originally listed the house on a Multiple Listing Service (MLS); Jon and Marsha agreed that the asking price was too high for the neighborhood (although we are not given the actual listing price), and agreed to offer two-hundred and seven-thousand dollars ($207,000) and an Earnest Money Deposit of five-thousand dollars ($5,000). Additionally, the buyers requested that the seller pay 3% which includes the title insurance and property taxes. After the REPC form was drafted, the two addendums were created. Addendum No. 1 is from the seller back to the buyer, and Addendum No. 2 is the buyer’s counteroffer to the seller.
A Louisiana attorney is constantly asked by non-Louisiana peers if the state ever adopted the Uniform Commercial Code or if they are still using the old, outdated, Napoleonic Code. Though Louisiana has stark interpretations of the relevance of the UCC, the state has adopted the code in piecemeal. This article is a partial synopsis of introducing readers to a few of the concepts of UCC as adopted by Louisiana compared to the existing principles of the law of sales.
The legality involved in operating a business is very momentous to both the owner and operators the company. Ones may not have knowledge of all the details; however, he or she should be acquainted with UCC regulations. When owners and operators understand UCC regulations, he or she can operate the business with more efficiency legally.
With commercial dealings on the rise in Australia and globally, so too are the complications. If some sort of codification is not established and built from the principals that already exist, commercial opportunities could be in jeopardy due to the uncertainty and risk of not having a clear outline or set of laws to cover contracts generally.
As noted above, Article 2 covers contracts, specifically regarding sales contracts. UCC 2A, like Article 2, is the rules of contract for lease contracts. The rules in both articles are functionally the same, with 2A language adapted to apply to the lease transaction. Both articles address basic contract rules and provisions, “including rules for offer and acceptance of a contract, statute of frauds, warranties, assignment of interests, risk of loss and remedies upon breach of contract” (www.UniformLaws.org, para. 3). Clearly, sales and lease contracts are significant to commerce, and thus, so too is the role of both of these UCC
A legal discussion of the contractual breaches and their related legal elements will be examined in this section. Some of the legal issues surrounding the contractual breaches include, the legal implications of the Uniform Commercial Code (U.C.C.), the defendant’s engagement in and outputs contract while under a requirements contract with my company, the doctrine of estoppel, and the issues of good faith and fair dealing. The definitions and some of the legal implications of the implied and requirements contracts were discussed in the preceding sections. An implied contract is defined as a “contract that is established by the conduct of a party rather than by the party’s written or spoken words” (Kubasek, Brennan, & Browne, 2015,
Civil law is more of a protectant and to change or adjust anything, one may be required to resubmit or cancel only if it’s stated in writing. In the business world, falling under the civil law will be the best coverage wanted. Once the plans and agreements are set, there in not changing. This article is meant to provide a short summary about both laws and their differences, but also, to allow one to understand which one could be more advantageous to them. Overall, common law and civil law are helpful in their own unique ways. Now I will discuss common and civil
The Uniform Commercial code (UCC) are “a set of laws that are designed to aid business by providing statutes that reflect modern commercial practices and providing remedies for breaches of its provisions” (Davidson, Forsythe, 2013). The District of Columbia (DC), Virgin Islands and all 50 states adopted portions of the UCC. There are 11 articles that reside in the UCC. From state to state there are different revised versions and no state may be similar. These particular laws help govern business transactions between the states and its territories. Such examples are sale of goods, contracts and borrowing money.
HILLIARD, J. And O’SULLIVAN, J. (2012) The Law of Contract [Online] 5th Ed. Oxford: Oxford University Press. Available from - http://books.google.co.uk/ [Accessed: 2nd January 2014]
Contractual agreement has always been viewed in terms of offer and acceptance. The universal principle to contract law has always been parties may get into an agreement in whichever way they deem fit and they are subject to certain terms as they choose. As far as legal requirements vital to their formation are binding contracts may be formed. Moreover a binding agreement may be manifested in terms of writing or in verbal form.
The basic law of a contract is an agreement between two parties or more, to deliver a service or a product. And reach a consensus about the terms and conditions that is enforced by law and a contract can be only valid if it is lawful other than that there can’t be a contract. For a contract to exist the parties must have serious intentions, agreement, contractual capacity meaning a party must be able to carry a responsibility, lawful, possibility of performance and formalities. Any duress, false statements, undue influence or unconscionable dealings could make a contract unlawful and voidable.
A contract is an agreement between two parties in which one party agrees to perform some actions in return of some consideration. These promises are legally binding. The contract can be for exchange of goods, services, property and so on. A contract can be oral as well as written and also it can be part oral and part written but it is useful to have written contract otherwise issues can be created in future. But both the written as well as oral contract is legally enforceable. Also if there is a breach of contract, there are certain remedies for that which are discussed later in the assignment. There are certain elements which need to be present in a contract. These elements are discussed in the detail in the assignment. (Clarke,
One of the last remaining strongholds of classical contract law is the notion that contracts require offer and acceptance therefore, in order for a contract to become binding, offer, acceptance, consideration and intention to create legal relations must exist. However contracts are formed in different ways for each different circumstance. (Shawn Bayern, Offer and Acceptance in Modern Contract Law: A Needles Concept, 103 Cal. L. Rev. 67, 102 (2015)
Between persons or wholesalers, contract law is a list of rules that govern contractual agreement. A contract is mainly an agreement between parties outlining their duties and responsibilities to one another. Contract can be formed for almost any type of interaction. Therefore, contract laws may address various transactions for the sale of goods and services. In a contract, contact laws are clearly shown as what a persona can and cannot do, and what the remedies are if a party breaches their contractual responsibilities.
Laws play a very integral role in contracts as it is through this medium that justice can be served with reason and understanding from the law requirements of this country. There are different types of contracts for different types of situations and agreements.