Lesson 18-Contracts: Applicable Laws

Question 1

What are the two sources of contract law?

Answer 1

• common law

- Article 2 of the Uniform Commercial Code (UCC)

Question 2

When are the different sources applied?

Answer 2

• UCC Article 2 applies to contracts that involve the sale of goods(tangible personal property).
• Common law applies to services and real estate contracts

Question 3

What if a contract involves the sale of real estate and the sale of goods?

Answer 3

use the UCC (UCC 2-107) and common law on fixtures (real property).

Question 4

What if the contracts involves both the sales of goods and providing services?

Answer 4

If a contract involves providing both goods and services, then the UCC applies if the purpose of the contract is primarily the sale of the goods. If, however, the primary purpose of the contract is the installation of the goods, it is governed by common law.

Question 5

What makes a contract unilateral?

Answer 5

-one side makes a promise in exchange for an action or performance from the other side.

Question 6

What makes a contract Bi-Lateral

Answer 6

-A promise is made by one party to the contract in exchange for a promise from the other party to the contract.

Question 7

What is a Quasi-Contract?

Answer 7

-when some performance has gone forward, even though there is no express or implied contract. The law creates a quasi-contract for the parties to prevent unjust enrichment of one party by the other.

Question 8

What is an express contract?

Answer 8

-A contract formed wholly by oral and/or written words.

Question 9

What is an implied contract?

Answer 9

-A contract formed, at least in part, based on the conduct of the parties or based on the factual circumstances.