What is a Contract and What Law Applies?

Question 1

“Goods” Defined

Answer 1

Goods are all things movable at the time they are identified as the items to be sold under the contract.

Question 2

Bilateral Contract

Answer 2

A contract consisting of the exchange of mutual promises; that is, a promise for a promise. A bilateral contract offer can be accepted in any reasonable way.

Question 3

Unilateral Contract

Answer 3

One in which the offeror requests performance rather than a promise. Here, the offeror promises to pay upon the completion of the requested act by the promisee.

Question 4

How can a unilateral contract be formed?

Answer 4

Two situations: (1) when the offeror clearly (unambiguously) indicates that completion of performance is the only manner of acceptance; and (2) where there is an offer to the public, such as a reward offer.

Question 5

“Merchant” defined

Answer 5

One who regularly deals in goods of the kind sold or who otherwise by their profession holds themselves out as having special knowledge or skills as to the practices or goods involved.

Question 6

Good Faith and Fair Dealing

Answer 6

Every contract within the UCC imposes an obligation of good faith in its performance and enforcement. “Good faith” is honesty in fact and the observance of reasonable commercial standards.