Business Contract

Business Contract

Introduction

Provision of services, legally speaking, is governed by common law. Common law is law made by courts. There exists a large body of cases, from pre-colonial English law to interpretation and rules set by modern courts that can guide in structuring sales for services and realty. Sales of goods are predominantly governed by the Uniform Commercial Code (UCC), specifically Article 2 of the UCC. Parties do, however, have the ability to opt out of UCC application to their transaction by making any rules for transfer that they wish. General contract law mandates that parties bargain legally and with good intentions. The UCC has been adopted by all states within the United States except for Louisiana. The UCC provides largely common rules regarding sale of goods, which aids in the seamless movement of goods across state borders. Article 2 applies to all sales of goods, regardless of whether the intended use is for a commercial or a consumer purpose (Minnesota Continuing Legal Education, 2012).

Discussion

If parties do allow the UCC rules to control their agreement, specific sections define how and when things happen in the contract to avoid lack of certainty. Also, there are warranties implied in transactions which common law does not implyampnumx2014; for example, warranty of title. There is in a contract for sale a warranty by the seller that the title conveyed shall be good and its transfer rightful. This warranty would not exist in a common-law transaction. In common law, the principle of caveat emptor (ampnumx201C; buyer bewareampnumx201D ;) largely applies, meaning that the buyer must examine the title for himself. For example, it is very common in a real estate transaction for the buyer to examine title (ownership) back in time 40 years or more in order to determine whether the present seller has clear ownership and ability ...