The Law Of Contracts And The Uniform Commercial Code

1763 Words8 Pages
An agreement between two or more competent parties for goods or services is typically referred to as a contract; and those contracts typically are governed by contract law. There are two general sets of law that govern contracts; the common law of contracts and the Uniform Commercial Code (UCC). These two sets of law have similarities and differences; however the provisions of the UCC usually take precedence over the common law of contracts. (Cheeseman, pg. 171). The common law of contracts was developed from state court decisions and precedent established by those court decisions as applied to other cases. (Cheeseman pg. 170) Although the majority of the law comes from state court decisions, there is a small portion that is based on…show more content…
169-70). Common law and UCC contracts also have the same main “steps;” first the offer, secondly the acceptance, thirdly the consideration and finally since it is an agreement for “something” there can be a breach of the terms of the contract. (Cheeseman). Following this thought a bit further; they both have an “offeror” and an “offeree” or someone selling something and someone buying something; while both deal with this transaction common law typically mainly deals with real estate, service, insurance, intangible assets and employment contracts. While on the other hand, UCC is mainly concerned with sale of goods and securities. (“Difference”, This actually brings us to a differences between common law and UCC; what is a “good?” Under the UCC a good is defined as anything tangible that are movable at the time of their identification to a contract (Cheeseman, pg. 301). Under common law a good can be tangible or intangible and moveable or immovable. While they are both forms of contracts and have similar components; they are unique and different from each other in the “execution” and “working” of those steps between the two parties; I’ll take a look at a couple of those. The “Offer” under the UCC Articles an
Open Document