Contract Law Essay

1012 Words5 Pages
When discussing the concept of contract law, there exist two bodies of legal rules that may apply to the contract. These bodies are the common law of contracts and Article 2 of the Uniform Commercial Code or the UCC. The common law of contracts is court made and is constantly changing, but the UCC is required in every state within the U.S.A. It is important to know which one to use and when, as well as what the differences between them are. The UCC was created with the purpose of bringing uniformity to the States in regards to commercial transactions. These regulations apply to commercial contracts that deal with the sale of goods. It does not apply to private and nonprofessional sales, property, services, or intangible goods. If the code does not have a specific rule for an issue, the common law will apply instead. The regulations of the UCC tend to be less stringent and focus less on the technicalities of a contract and more on the overall message. The common law of contracts was and is created by the court systems. It is a precedent set by prior court rulings, and for this reason, it is always evolving and changing. It tends to be stricter than the UCC in the interpretation of contracts. One difference between common law and the UCC occurs within the offer portion of the formation of a contract. The common law takes the position that the court is required to uphold contracts, but not create them when they did not exist. The common law has a relatively high standard of definitiveness during the offer period of the contract. The UCC places more emphasis on the expectations one may have during the contract process. One statute that shows this is section 2-204 of the UCC, which states that contracts can be created “in any man... ... middle of paper ... ...ional consideration on her part. The case reached the Supreme Court of Iowa and they ruled in favor of Artis, as the addendum did not have adequate consideration. With the UCC, no consideration is needed for an alteration to be valid as stated in code 2-209(1). For example, if Merchant A agrees to sell a product for $100 but later agrees to accept $70, they cannot later sue Merchant B for not paying $100. One exception to this is if the contract requires changes to be made in writing, an oral change will not be accepted. Additionally, if the price of the goods in the modification is $500 or greater, the modification must meet the statute of frauds in section 2-201 to be considered valid. Later parts of the contract are the same regardless of which authority the contract falls under. Capacity and legality requirements do not differ between the UCC and common law.
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