BLBU 2234 Chapter 9: Introduction to Contracts
7 Feb 2019
School
Department
Course
Professor
CH. 9: Introduction to Contracts
9-1: Development of Law of Contracts
- Vast and Complicated institution of business can be conducted efficiently and
successfully only upon certainty that promises will be fulfilled
- Promises based solely on personal honesty or integrity do not have reliability essential
to business
- Contract Law: has/still is undergoing enormous changed
o Contract liability only where parties strictly complied with required formalities
o Allows party to be excused from contractual duties where fraud, duress, under
influence, mistake, unconscionability or impossibility is present
o Limiting absolute freedom of contract and relaxing requirements of contract
formation
Common Law
- Two Principal Types
o Business to Business (commercial)
o Business to Consumer (consumer)
- Law of Consumer Contracts: regulatory rules that are prominently applied in consumer
protection law
Uniform Commercial Code
- Sale of Personal Property
- Sale: passing of title to goods from a seller to a buyer for a price
o Contract for sale: present sale of goods and contract to sell goods at future time
- Personal Property: any type of property other than an interest in real property (land)
Types of Contracts Outside the Code
- General Contract Law governs ALL contracts outside scope of CODE
o Employment, service, insurance, real property (land and anything attached to it),
sale of intangibles
International Contracts
- Differences in language, customs, legal systems, currency
o Specify language
o Define legal terms incorporated
o Acceptable currency (currencies)
o Payment Device
- Force Majeure (unavoidable superior force): apportion liabilities and responsibilities of
parties in the event of an unforeseeable occurrence
- Contracts for the International Sale of Goods (CIGS)
o Excludes sales of
▪ Goods bought for personal/family/household
▪ Ships/aircrafts
▪ Electricity
Document Summary
Vast and complicated institution of business can be conducted efficiently and successfully only upon certainty that promises will be fulfilled. Promises based solely on personal honesty or integrity do not have reliability essential to business. Contract law: has/still is undergoing enormous changed: contract liability only where parties strictly complied with required formalities, allows party to be excused from contractual duties where fraud, duress, under influence, mistake, unconscionability or impossibility is present. Limiting absolute freedom of contract and relaxing requirements of contract formation. Two principal types: business to business (commercial, business to consumer (consumer) Law of consumer contracts: regulatory rules that are prominently applied in consumer protection law. Sale: passing of title to goods from a seller to a buyer for a price: contract for sale: present sale of goods and contract to sell goods at future time. Personal property: any type of property other than an interest in real property (land)
