Lecture outline class 1

Lecture outline class 1 - C.L rule land contracts long term...

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Business Law 420 Lecture/discussion Outline Class 1: Review of Contract Law and Introduction to Uniform Commercial Code, Sales (if it has been some time since you studied contracts, a review of chapters 10 and 15 will prove useful) 1. Contract: a legally binding agreement. Breaking a contract will usually result in damages against the breaching party. Damages = the loss to the victim of the breach. -a contract is formed through an effective offer + an effective acceptance 2. The "four essentials" are needed to form a contract -legality: legal transaction - capacity: mental capacity to understand the transaction -consideration: mutual, bargained-for exchange of value; gift promises are not enforceable -agreement: the "meeting of the minds" 3. When is a writing also required? only for "important" contracts. -Statute of Frauds, dating from 1677. Common Law (C.L.) rule v. UCC rule -UCC rule: when the sale price is $500 or more; but writing substitutes may be allowed
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Unformatted text preview: - C.L. rule: land contracts, long term contracts, others. Must have a traditional signed writing, signed by the party against whom enforcement is sought.-UCC rule is easier to satisfy. UCC 2-201 (2) and (3).-an example of the UCC's modernizing of contract law in the 20th Century, due to the telephone 3. Lack of voluntary consent (fraud, duress, undue influence) voids the contract in all cases 4. UCC rules and common law rules are sometimes different; so when do UCC rules apply, and when do Common Law rules apply?-UCC rules apply when there is a contract is for the sale of goods ; in all other cases the C.L. rules are used.-first there must be a contract, per traditional rules (4 essentials, etc.)-sale = transfer of title for a price, UCC 2-106-goods = tangible, personal property, UCC 2-105-UCC rules are generally not mandatory; they may usually be over-ridden by agreement of the parties-the UCC generally respects "freedom of contract"...
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Lecture outline class 1 - C.L rule land contracts long term...

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