General principles

Question 1

What contracts are governed by common law?

Answer 1

The common law governs if a contract deals with services or real estate, e.g., hiring someone to mow your lawn

Question 2

What contracts are governed by the UCC

Answer 2

The UCC governs if a contract deals with goods, e.g. agreement to buy 100 reams of paper from a paper supply company

Question 3

What is the governing body of law for mixed contracts, which are contracts that have elements of both services and goods?

Answer 3

For mixed contracts, two rules operate to determine whether the common law or UCC applies:

1. the common law and UC cannot both govern one individual contract at the same time. Thus mixed contracts must fall into one class or the other. However, there is a limited exception for divisible contracts (contracts that can divide the goods and services portions into separate mini contracts. )
2. The predominant purpose of the contract determines whether the common law or UC governs i.e. whether a good or service plays a bigger role in the contract if the predominant purpose of the contract involves the purchase or sale of goods, the UC applies, if the predominant purpose of the contract involves services or real estate the common law applies

Question 4

What are the requirements to form a valid enforceable contract?

Answer 4

A traditional enforceable contract is formed when there is

1. mutual assent which is a valid offer plus valid acceptance of that offer.
   2 consideration.
   And
   3 no defenses to formation that would invalidate the otherwise valid contract