Contract Law: The Uniform Commercial Law

1672 Words7 Pages
A promise the law will enforce is a contract. A promise the law will not enforce is that of a gift, one that is illegal or one that is illusory; however, there must always be a promise for there to be a contract. Two types of contracts are bilateral; a promise exchanged for another promise, or a unilateral contract; one that has a promise on one side exchanged for an act or forbearance to act on the other. In an introduction to the legal topic of contracts, it is important to note three distinct branches of the legal body of rules regarding enforcement of a promise. The Uniform Commercial Code (UCC) applies to contracts involving the exchange of goods with particular emphasis on Article 2, involving commercial transactions. The Common Law…show more content…
This revocation is possible even if the offer defines a term. However, a held open offer for a period of time can create an options contract that cannot be revoked. The firm offer rule states that if a merchant has made an offer statement in some writing that the offer should be held open is to be held open during that time, unless it supersedes three months, if it involves the sale of goods. Additionally, if the offeree begins performance, the ability to revoke is frozen for some reasonable amount of time to complete performance. Reasonable reliance of an offer may prevent revocation as well, through promissory estoppel but should only be used as a fallback position if some real contract can be relied upon. An as stated offer should last only as long as is stated to last. If there no statement, then it lasts some reasonable amount of time. Death or incompetence can negate an offer as it destroys the power of acceptance. Rejection of an offer also destroys the power of acceptance and counter offers shall be deemed a rejection of offer with only two exceptions; a counter offer in an options contact where consideration can be applied to keep the offer open, and the mere inquiry rule which is a reply to the offeror by the offeree with no intent to reject. Acceptance and the act of, is the announced intention to accept the offer.…show more content…
One, promises may act as consideration for some other but there are limitations, in that the value needs to be defined explicitly. Two, past consideration; if something happened in the past that did not establish some quasi-contract is cannot be currently exchanged for a promise. Consideration requires a current exchange. Third, some courts hold that relief from some moral obligation by the promisor is sufficient consideration and currently being exchanged. Fourth, the preexisting duty rule exerts that an action sufficient for reward will be not enforced if the action is already the duty of person performing the
Open Document