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Unit 14

Unit 14. Contracts under the Uniform Commercial Code. Definition. An agreement between two or more parties enforceable in court. Elements of a contract. Competent parties Proper subject matter Offer Acceptance Consideration (detriment). Competent parties. Age Sound mind

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Unit 14

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  1. Unit 14 Contracts under the Uniform Commercial Code

  2. Definition • An agreement between two or more parties enforceable in court.

  3. Elements of a contract • Competent parties • Proper subject matter • Offer • Acceptance • Consideration (detriment)

  4. Competent parties • Age • Sound mind • Exception for necessaries • Void versus voidable contracts

  5. Proper subject matter • Not illegal • Not (excessively) immoral

  6. Meeting of the minds • Offer must contain material terms • Newspaper ads - invitation to make an offer • Acceptance must be unqualified • Qualified acceptance is a counteroffer • Terminates offer • Grudging acceptance

  7. Consideration/Detriment • Exchange of value • Need not be money

  8. Sale of Goods • Tangible personal property • Existing • Identified • Examples • Unborn animals • Growing crops

  9. Statute of frauds • $500 or more • Sufficiency of writing • Quantity • Signature of party to be charged

  10. Statute of frauds - Exceptions • Completed transaction • Payment made & accepted or goods delivered & accepted • Specially manufactured goods • Admission in pleadings or otherwise • Merchants • Definition: one regularly engaged in a particular business • Written confirmation w/n reasonable time • Party to be charged has reason to know contents • Fails to object w/n 10 days

  11. Remedies for breach • Sellers • Resell and sue for difference • No resale; sue for difference from market price • Volume seller: lost profits

  12. Remedies for breach • Buyers • Non-delivery or nonconforming goods (perfect tender rule) • Cover • Accept w/ notice, sue for damages

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