BUL 2241- BUSINESS LAW- CH. 11-
INTRO TO CONTRACTS-QUESTIONS -
FULLY SOLVED.
Purpose of a Contract - Answer - More predictable business relationships.
- Inform parties of their rights and duties.
Sources of Contract Law - Answer - Common Law (Case Law)
- Statutory Law
- Uniform Commercial Code (UCC)
Definition of Contract Law - Answer A body of law created to reflect modern business
practices and to provide uniformity throughout the U.S. in regard to commercial transactions.
Uniform Commercial Code - Answer - Part or all of the UCC is adopted in all states' statutes.
- UCC Article 2 governs the sale of goods, it does not cover K's for services, a contract for
services is governed by common law.
- "Goods" means anything movable, except for
(i) money;
(ii) securities; and
(iii) other legal rights. (see complete list in appendix B-6).
- In a mixed contract (goods and services), UCC governs only if the primary purpose of the K was
for the sale of goods.
Pass v. Shelby Aviation, also Pittsley v. Houser
Elements of a Contract - Answer - Offer
- Acceptance
- Consideration
- Legality
Types of Contracts - Answer - Bilateral K's
- Unilateral K's
- Express K's
- Implied K's
- Executory K's
, - Executed K's
- Valid K's
- Unenforceable K's
- Voidable K's
- Void K's
Bilateral K's - Answer Where both parties make a promise to do something.
- Example:
Producer promises Gloria $2 Million to star in his movie 3 months from now and Gloria agrees
to star in it.
Unilateral K's - Answer - Where one party makes a promise that the other party can accept
only by doing something.
- Example:
Producer says to Leo "I'll give you a hundred bucks if you mow my lawn this weekend."
~If he mows the lawn, he's entitled to $100.
~If Leo does nothing, neither Leo nor the Producer owes anything.
Express K's - Answer - Where two parties explicitly state all important terms of their
agreement.
- May be explicitly stated orally or in writing.
Implied K's - Answer - Where the words and conduct of the parties indicate that they
intended an agreement.
- Example:
Leo mows Producer's lawn
Executory K's - Answer - Where one or more parties has yet to fulfill their obligations.
- Example:
Gloria and Producer made an agreement for Gloria to star in his film in 3 months. This is an
executory K. Producer does not have to pay for 3 months and Gloria does not have to act until 3
months.
Executed K's - Answer - Where all parties have fulfilled their obligations.
- Example:
When Gloria has finished acting and Producer has fully paid, they have an executed K. (Note:
Not to be confused with signing a K).
INTRO TO CONTRACTS-QUESTIONS -
FULLY SOLVED.
Purpose of a Contract - Answer - More predictable business relationships.
- Inform parties of their rights and duties.
Sources of Contract Law - Answer - Common Law (Case Law)
- Statutory Law
- Uniform Commercial Code (UCC)
Definition of Contract Law - Answer A body of law created to reflect modern business
practices and to provide uniformity throughout the U.S. in regard to commercial transactions.
Uniform Commercial Code - Answer - Part or all of the UCC is adopted in all states' statutes.
- UCC Article 2 governs the sale of goods, it does not cover K's for services, a contract for
services is governed by common law.
- "Goods" means anything movable, except for
(i) money;
(ii) securities; and
(iii) other legal rights. (see complete list in appendix B-6).
- In a mixed contract (goods and services), UCC governs only if the primary purpose of the K was
for the sale of goods.
Pass v. Shelby Aviation, also Pittsley v. Houser
Elements of a Contract - Answer - Offer
- Acceptance
- Consideration
- Legality
Types of Contracts - Answer - Bilateral K's
- Unilateral K's
- Express K's
- Implied K's
- Executory K's
, - Executed K's
- Valid K's
- Unenforceable K's
- Voidable K's
- Void K's
Bilateral K's - Answer Where both parties make a promise to do something.
- Example:
Producer promises Gloria $2 Million to star in his movie 3 months from now and Gloria agrees
to star in it.
Unilateral K's - Answer - Where one party makes a promise that the other party can accept
only by doing something.
- Example:
Producer says to Leo "I'll give you a hundred bucks if you mow my lawn this weekend."
~If he mows the lawn, he's entitled to $100.
~If Leo does nothing, neither Leo nor the Producer owes anything.
Express K's - Answer - Where two parties explicitly state all important terms of their
agreement.
- May be explicitly stated orally or in writing.
Implied K's - Answer - Where the words and conduct of the parties indicate that they
intended an agreement.
- Example:
Leo mows Producer's lawn
Executory K's - Answer - Where one or more parties has yet to fulfill their obligations.
- Example:
Gloria and Producer made an agreement for Gloria to star in his film in 3 months. This is an
executory K. Producer does not have to pay for 3 months and Gloria does not have to act until 3
months.
Executed K's - Answer - Where all parties have fulfilled their obligations.
- Example:
When Gloria has finished acting and Producer has fully paid, they have an executed K. (Note:
Not to be confused with signing a K).
