Purpose:

To build a broader understanding contract law by knowing the sources of contract law, the rules that guide the interpretation of contracts and the elements of a valid offer and valid acceptance.

Upon completing this assignments students will be able to:

• Evaluate when a promise is enforceable, the elements of a contract, performance, and the remedies available in the event of breach.
• Distinguish between contracts governed by the Uniform Commercial Code and those governed by the common law of contracts.

Instructions:

A contract is a set of legally enforceable promises. A valid contract must have agreement, consideration, legal object/purpose, and parties with legal capacity. Sometimes two parties will enter into a contract with the intent to benefit a third party. In these situations, a third-party beneficiary contract is formed. Third-party contracts are difficult to follow with the rights and obligations of the parties.

The Uniform Commercial Code (UCC) is a statutory sources of contract law in the United States applicable to transactions involving the sale of goods, The UCC was created in 1952 and adopted by all 50 states, the District of Columbia, and the Virgin Islands; it may be modified by each state to reflect the wishes of the state legislature. The adherence to the UCC should always be considered when preparing a contract.

You are required to create a contract (keep it simple-one page). You will select the subject of the contract.

Be sure to consider: What is the subject (be sure to clearly explain and/or describe the subject of the contract). When is it being delivered, shipped, received? Did you include dates for the timeline to satisfy the contract. Was assent, consideration, capacity, and legality satisfied?

Elements of a Contract:

• Mutual assent: a valid offer and acceptance between the parties, like the sale of a car one party is selling the car, and the other has agreed to buy it
• Adequate consideration: the purchase price, which can be money or a trade
• Capacity: the parties ability to enter into an agreement; minors or mentally incapacitated people cannot sign a valid contract
• Legality: whether or not the contract meets all the jurisdictional requirements (for example, a contract provision thats legal in New York may not be legal in Texas)