Weekly Reflection – Common Contracts vs. UCC Article 2
Contracts are used on a daily basis. For example, agreeing to terms and conditions to download an app on a mobile device occurs daily and is considered a contract. It is important to read and know what one is agreeing too; in this case apps are able to retrieve personal data from the authorized device. Both parties need to be in agreement with the terms of the contract in order for the contract to be made. If someone agrees and then adds to what was stated, it is not a valid contract (Melvin, 2011). The contract laws are governed by the common law and the Uniform Commercial Code known as the UCC. Common laws and the UCC are ...view middle of the document...
When it comes to the terms, the common law requires a description on the quantity, price, performance time, nature of work, and identity of an offer to be a valid contract ("Overview of UCC Contracts and Common Law Contracts", 2013). Common law dictates any change to an offer is a rejection and then it is counter offered and if the contract is modified the law requires consideration.
Uniform Commercial Code (UCC) Article 2 contracts apply to agreements between two parties that deal with goods and tangible objects. The UCC can be adopted by state in whole or part and thus is not mandatory across the country, so doing business in another state can be tricky in that the other state may not have adopted the UCC. The UCC specifies that the quantity is the only must have term in the contract ("Overview of UCC Contracts and Common Law Contracts", 2013). A change to an offer with the UCC can still form a binding contract depending on the circumstances involved in the transaction and consideration is not essential. UCC is a model statute that local and global organizations partake to protect their intellectual property and products (Melvin, 2011). Stakeholders are able to protect their ideas and products in a market playing field where ethical practices are enforced.
Melvin, S. P. (2011). The legal environment of business: A managerial approach: Theory to practice. New York, NY: McGraw-Hill/Irwin.
Overview of UCC Contracts and Common Law Contracts. (2013). Retrieved from: http://smallbusiness.findlaw.com/business-contracts-forms/contracts-and-the-law.html#sthash.BvfC8Usz.dpuf