Common Law And The Uniform Commercial Code

2152 Words Dec 1st, 2014 9 Pages
When running a business, the most common legal transactions you will be involved in is a business contract and despite what type of business a person runs, by having an understanding of contract law is a key to creating sound business agreement that will be enforceable legally incase a dispute arises (Find law).
Normally, contracts are governed and enforced by the law in the state in which the agreement was made but depending on the subject matter of the agreement such as property lease and sales of goods thus a contract may be govern by either one or two types of state law, namely; The common Law and The Uniform Commercial Code (UCC).
The Common Law;
The majority of contracts based on employment agreement, lease and general business agreement are controlled by the state’s common law. This has been a tradition based but has been constantly evolving set of law that in most cases are judge-made from court decisions over the years.
The Uniform Commercial Code (UCC)
The common law does not control each and every contract. For example the contract of sales of goods is not controlled by the common law thus it does not control contracts that are primarily for the sale of goods. Therefore, contracts for sales of goods are normally controlled by the Uniform Commercial Code (UCC). This is a standardized collection of guidelines that govern the law of commercial transactions. In general, most states have adopted UCC in whole or partly thus making the provisions of the UCC part of the…
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