Bodies of Law and Policy

Question 1

Predictability.

Answer 1

a. The law strives to structure human relations so that people can
predict the consequences of their actions.
i. Courts want to provide predictable consequences for parties entering contracts.
b. Promotes our free market economy.
i. Provides certainty for parties involved in a contract.
ii. Encourages people to make contracts by ensuring them that the contract will be enforced.

Question 2

Freedom of Contract.

Answer 2

a. Courts want to uphold individual autonomy.
i. People with free willfreedom to enter into contract.
ii. Basis for court’s reluctance to allow parties to avoid fulfilling contracts they make.
b. Freedom of contract also means freedom of bad contract.
i. Promoted when courts enforce contracts, even if they seem
unfair.

Question 3

Fairness.

Answer 3

3. Fairness.
   a. “Just”, “equitable”, “protection”.
   i. People more likely to enter contracts if legal system will treat
   contract fairly.
   ii. Unfair contracts may not be enforced conflicts with freedom of a bad contract

Question 4

Efficiency

Answer 4

a. Promotes the idea of exchange.
i. If you give somethingyou get something.

Question 5

UCC

Answer 5

Governs all sales of goods. [Not excluded to just sales of goods
between merchants/merchants and consumers]
i. Includes tangible items [such as cars, clothes, food, furniture];
NOT intangibles [such as real property, services, stocks, bonds,
etc.]
ii. Also includes the sale of goods with incidental services [such as the
purchase of a water heater and the subsequent installation], but does not include services contracts with incidental goods [such as a contract for an artist to paint a portrait of you; that would be common law.]

Question 6

Common Law

Answer 6

a. Governs all contracts that do not involve the sale of goods.
i. Includes sale of property, services, and intangible items [such as stocks, bonds, etc.]

Question 7

Predominance Test

Answer 7

a. Involves both the sale of goods and a services contract; which law
applies?
i. General Rule:
1. Determine by the predominance of the transaction using factors:
a. The language of the contract;
b. The nature of the supplier’s business;
c. The relative value of the goods v. services.