The Law Of Contracts And The Uniform Commercial Code

1763 Words Oct 3rd, 2015 8 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 Federal court rulings as well. (Cheeseman, pg. 170) So you can imagine with that being the case, you could potentially have variation from state to state on contract law. To deal with this dilemma, and potential problem, in 1949 the National Conference of Commissioners on the Uniform State Laws put forth the UCC. (Cheeseman pg. 300). Generally it was an attempt to have a “standard” set of rules that would govern commercial transactions (Cheeseman pg. 300). It is comprised of 9 articles and deals with the sale of goods; and to become a law in a state the state must enact the UCC as its commercial law statue (Cheeseman, pg. 300). So with this as a backdrop, I will look at the similarities and differences between common law and UCC contracting.…
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