Similarities and differences between common law contracts versus the Uniform Commercial Code

Full Answer Section

• Mutual assent: Mutual assent is the agreement of both parties to the terms of the contract. Mutual assent can be expressed or implied.
• Capacity: Capacity is the legal ability to enter into a contract. Minors and people who are mentally incompetent do not have capacity to enter into contracts.

Similarities and differences between common law contracts versus the Uniform Commercial Code (UCC)

Common law contracts and the UCC are both bodies of law that govern contracts. However, there are some key similarities and differences between the two.

Similarities:

• Both common law contracts and the UCC require the same basic elements for a valid contract: offer, acceptance, consideration, mutual assent, and capacity.
• Both common law contracts and the UCC allow for both written and oral contracts.
• Both common law contracts and the UCC allow for contracts to be modified or terminated.

Differences:

• The UCC applies to contracts for the sale of goods, while common law contracts apply to all other types of contracts.
• The UCC has a number of specific rules that apply to contracts for the sale of goods, such as the rules on the passage of title and the risk of loss.
• The UCC is generally more favorable to buyers of goods than common law contracts.

Why it is important to distinguish which one applies when making a contract business decision

It is important to distinguish between common law contracts and the UCC when making a contract business decision because the two bodies of law have different rules and requirements. For example, the UCC has a number of specific rules that apply to contracts for the sale of goods, such as the rules on the passage of title and the risk of loss. If a business is entering into a contract for the sale of goods, it is important to know which rules apply so that the business can protect its interests.

Breach of contract lawsuit involving two businesses within the last year

Facts:

In 2022, IBM filed a breach of contract lawsuit against GlobalFoundries. IBM alleged that GlobalFoundries had failed to meet its obligations under a contract to manufacture high-performance microchips for IBM. IBM claimed that GlobalFoundries had used the funds that IBM had paid it to develop its own microchips, instead of developing the microchips for IBM.

Dispute:

The dispute centered on whether GlobalFoundries had breached its contract with IBM. GlobalFoundries argued that it had not breached the contract, and that it had used the funds that IBM had paid it to develop the microchips for IBM.

Decision/reasoning by the court:

The case is still ongoing, but a judge has ruled that IBM has a valid claim against GlobalFoundries. The judge found that there is evidence that GlobalFoundries may have breached its contract with IBM.

Conclusion

Breach of contract is a serious matter, and businesses should take steps to protect themselves from breach of contract lawsuits. One way to do this is to have all contracts reviewed by an attorney before signing them. Businesses should also keep good records of all contracts and agreements.

Sample Answer

A valid contract requires the following elements:

• Offer: An offer is a clear and unambiguous proposal to enter into a contract. The offer must be made to a specific person or group of people.
• Acceptance: Acceptance is the unqualified agreement to an offer. The acceptance must be communicated to the offeror.
• Consideration: Consideration is something of value that is exchanged by both parties to the contract. Consideration can be money, goods, services, or a promise.