WELCOME CONRACT LAW

HISTORY OF CONTRACT LAW Contract law is common law and developed thorough various judicial decisions. Accordingly Uniform Commercial Code is established . The UCC contains set of Articles and deals variety of commercial subjects like bank deposits, collection, Negotiable instruments, Letters of Credit etc. Specifically Article 2 governs the transactions in the Sale of Goods. The contract law is common law. It has been developed through various judicial decision, local customs etc. Based on the considerations, the Uniform Commercial Code is established. The code is a set of Articles and it also deals with the commercial subjects like bank deposits, collection, negotiable instruments etc. Article 2 meant for the transactions in sale of goods.

UCC AND CISG UCC is an important source of law of contract. The UCC code contains rules and applications to transactions. The UCC regulates the transactions within the Country whereas the CISG is regulates international sales transactions. The Uniform Commercial Code contains rules and application to the transactions. For the national transactions, the UCC is applied. In case of international transactions, CISG is applied. CISG is a convention on Contracts for the International Sale of Goods. The member countries accepts the uniformity of laws in connection with the international sale of goods.

UCC overview The UCC contains 9 Articles. Article 1 contains general provisions. Article 2 and 2A described the terms of Sales and Leases. Article 3 to 6 prescribed Bank Deposits, Fund Transfer, letters of Credit and bulk sales and transfers. Article 7 to 9 is associated with Warehouse Receipts, Bills of Lading and other documents, Investment Securities and Secured Transactions As the UCC meant for only goods (movable properties), the UCC defined the terms accordingly in specific Articles. It means the parties decide their selves determining the Article. For example, if a customer desire to sale investments can choose Article 8. On the other hand if a person desire to sale of goods, the person can choose Article 2.

VALIDITY OF THE CONTRACT UNDER UCC The UCC is applied for the contracts which are associated with the Goods . The valid contract consist an agreement with an offer, acceptance and consideration. Free consent, possibility of performance , enforceable by law , capacity of the parties are some of the requirements of valid contract. The contract is an agreement for which the party receive the consideration for the promise. The UCC is applied only for the goods contracts. For a valid contract, the agreement should include offer, acceptance, consideration, free consent, possibility of performance, capacity of the parties.

SERVICE CONTRACT The sale of goods is governed by Article 2 of the Uniform Commercial Code. In case of investment securities, it is regulated by Article 8 of the UCC. . Therefore the UCC is limited to the Goods only. On the other hand, the contract for services is not sale of goods,. Hence such contract will be covered under general contract law. The Uniform Commercial Code is limited to Goods contracts only. Goods means movable goods and it is covered under Article 2 of UCC. However, the investment securities are regulated by Article 8. But the Contract for services is not covered under UCC and such service contract is regulated through general contract laws.

SERVICE CONTRACT contd. Some contracts include both terms i.e. Sale of Goods and service. In that case, it can be decided by the dominant element. It means if the sale of goods is dominant, sale contract under Article 2 of the UCC. If the service element is dominant, it is service contract and is governed by general contract of law. Sometimes, the contract agreements may involve goods and service. At that time, type of contract will be decided depending dominance. Therefore if the goods is dominant over service, the contract is under Article 2 of the UCC. On the other hand, if service is dominant element, the agreement is governed by general contract law.

CONCLUSION Sale of goods contracts and service contracts both are different and regulated by UCC and general contract laws. Sale of goods and UCC is applicable for the movable goods only. Hence immovable properties like house, real estate etc excluded from UCC. Remedies granted in case of parties failed to perform the contract. The UCC is applicable only for goods and not for services. The service agreements are covered by general contract laws. The immovable properties are excluded from UCC. Therefore house properties, real estate and other immovable properties not covered under UCC. In case parties failed to perform the contract, the remedies are granted.

THANK YOU I thank the client for the opportunity given to explain Uniform Commercial Code and contract laws.

REFERENCES http://www.jurisdoctor.adv.br/legis/contract.htm http://en.wikibooks.org/wiki/US_Contract_Law http://www.scribd.com/doc/16514116/Essential-Elements-of-a-Valid-Contract http://sales.uslegal.com/personal-property-sales/uniform-commercial-code-ucc/ References added

REFERENCES contd. http://www.law.cornell.edu/ucc/ucc.table.html References added