Question

Discussion Assignment - Contracts

1. Retail Store sends out an email to all of its customers stating, “Free tote bag and 30% off everything that fits in it, to the first 50 customers! Is this an offer or just an advertisement? What additional terms are needed to make the offer definite and certain?

2. Define what the purpose of the UCC is and how it helps businesses in the sale of goods.

3. What is the difference between an express and an implied contract? Give an example of each.

4. Find a current event on the internet involving a contract dispute between two or more businesses. Post a link to the article you read, explain what the contract dispute is about, and relate the dispute to concepts you learned in this week's chapter.

Answer 1

1.In the given case, Retail Store sends out an email to all of its customers stating, “Free tote bag and 30% off everything that fits in it, to the first 50 customers!" Is an advertisement (invitation to offer).

An offer is an expression of a person showing his willingness to another person to do or not to do something, to obtain his consent on such expression. The acceptance of the offer by such person may result in a valid contract. An offer must be definite, certain and complete in all respects. It must be communicated to the party to whom it is made. The offer is legally binding on the parties.

An offer must be

1. Must be distinguished from invitation to treat
2. Can be explicit or impelled
3. Can be made to the public or specific
4. Must be communicated.

2.The Uniform Commercial Code was published in 1952 after approval from the American Law Institute, the National Conference of Commissioners on Uniform State Law, the House of Delegates and the American Bar Association. The nine articles of the UCC is a set of laws governing the sale of goods, leases of goods, negotiable instruments, bank deposits, fund transfers, letters of credit, bulk sales, warehouse receipts, bills of lading, investment securities and secured transactions.The Uniform Commercial Code sets the standards of good faith in a commercial transaction for the sale of goods.

UCC helps business:

Performance

The sales contract will generally determine which party is required to perform first. This provision helps to determine if the buyer or the seller is in breach of the agreement due to failing to perform as stated by the contract. Either the seller must deliver the items before the buyer is required to accept and pay or the buyer must pay for the items before the seller has the duty to act in good faith and deliver the items in a reasonable manner. If the contract does not specifically define who is required to perform, industry customs and fair trade may determine what is acceptable for the transaction. Under the Uniform Commercial Code, the buyer is required to pay for the goods when they are delivered, unless the contract states otherwise.

Disputes

Either the seller or the buyer can sue for damages, if the other party fails to act in good faith and perform according to the sales agreement. Courts will determine if either party has breached the contract by failure to comply with any required contract terms. If the contract is unclear as to a specific dispute between the seller and the buyer, courts will apply the Uniform Commercial Code standards of good faith and reasonable performance with sales contracts.

3.Express contract is one in which the proposal and acceptance, that results in an agreement, enforceable by law, is expressed verbally. Example of express contract is Leasing Agreement

Implied contract refers to a contract wherein the proposal and acceptance, leading to the contract, is expressed non-verbally, i.e. through other means.

Example of implied contract is Sale by fall of hammer in an auction sale.