Contract Law Exam Study Guide: Updated A+ Score Guide Solution

Contract Law (Ans- Contract law, which governs the issuance of insurance policies, is concerned with the obligations agreed upon between parties and stipulated in a contract. Contract law ensures that a contract is legally valid and that the legal obligations of the contract are carried out. For a contract to be legally enforceable in court, there must have been an exchange of value (consideration), mutual agreement of the parties (offer and acceptance) and a legal purpose. Parties to the contract must also have the legal capacity to enter into such contract. Further, under the doctrine of 'Adhesion', any ambiguous language int eh contract is always construed against the insurer, since they wrote it. Tort law, on the other had, is concerned with the obligations people have that are imposed upon them by common law. Tort law provides for compensating an individual for losses resulting from the conduct of others that is considered socially unreasonable. A 'tort' is defined as civil injury or wrong to others, such as negligence, which is the failure to act as a reasonable person The Uniform Commercial Code (UCC) (Ans- originally drafted by the National Conference of Commissioners on Uniform State Law, it governs commercial transactions and has been adopted by all states, entirely or in party Article ! (Ans- General Provisions , such as definitions that apply to entire UCC. Article 2 (Ans- Deal with the sales of goods. Article 2A (Ans- Leases (new) Article 3 (Ans- Commercial paper Article 4 (Ans- Bank Deposits and collections Article 5 (Ans- Letters of Credits