Question

In lawsuits that involve both goods and services, how is the proper source of law to enforce and govern the agreement established?

Answer 1

Ans:.....
An agreement or contract is a promise involving the exchange ofsome good or service between two or more persons . The element that distinguishes a contract from an informal agreements is that it is legally binding.The law provides a remedy in the event that the promise is not fulfilled. In law, certain types of contracts must be in writing, but oral contracts are valid in many situations. An oral contract may be held to exist even in the absence of agreement as to all its terms.
Sources of Contract Law:
The Statute of Frauds:
The Statute of Frauds was enacted in England in 1677, and it has been adoptedin one form or another by all 50 states. In order to prevent fraud on the part of either party in the exchange of goods, the statute requires a written contract for: one, the sale of land; two, the assumption of the obligations of another party, such as the co-signing of a loan; three, transactions that take more than one year to complete; and four, sale of personal property for more than $5,000
The Uniform Commercial Code:
The Uniform Commercial Code (UCC) is the main body of law that governs transactions involving goods. It was developed by the National Conference of Commissioners on Uniform State Laws and the American Law Institute, a nonprofit legal research organization. Since its completion in 1952 it has been adopted byall 50 states (Louisiana, however, did not adopt all of the code). The purpose of the code is to facilitate commerce by simplifying and clarifying the law regarding commercial transactions and to create a uniform set of rules nationwide. .
Classification of Contracts:
legal scholars have classified contracts in many different ways. The most common classifications of contracts include: "express"and "implied" contracts; "void" and "voidable" contracts; and "enforceable"and "unenforceable" contracts.
Express and Implied Contracts:
Express contracts, which may be written or oral, are contracts in which the terms of the agreement made are explicitly stated: when a valid offer is accepted, an express contract has been created. Implied contracts, usually referred to as "implied in fact," are contracts that are formed by the behavior of the parties in the absence of directly negotiating the specifics of the transaction. Making an appointment with a repairman to have a broken washing machine fixed is an implied contract--the repairman may reasonably expect to be paid for making the repairs. The term "implied in fact" is used to distinguish this type of implicit arrangement from an "implied in law" contract, or "quasi-contract." A quasi-contract is not an actual contract; it is a non-binding legal mechanism used in special circumstances to prevent one party from beingseverely harmed or unjustly enriched by an implicit arrangement.
Void and Voidable Contracts:
Voidable contracts are contracts that may be canceled by one of the two parties involved. A contract may be voidable for various reasons, but in most cases a voidable contract provides for one of the parties to withdraw from the agreement without penalty.
Enforceable and Unenforceable Contracts:
A contract may be enforceable or unenforceable. An enforceable contract is one for which a legal remedy is offered in the event that the contract is not fulfilled. A contract may be unenforceable when certain statutory requirementshave not been met.
For example, an oral contract to buy land would not be enforceable because the Statute of Frauds requires such an agreement to be in writing. Similarly, statutes of limitations, which limit the length of time available for legal action, may apply to contracts of certain types and renderthem unenforceable after a certain period of time.
Validity of Contracts:
Several requirements must be met for a contract to be valid and legally binding. The agreement must specifically define the terms under which the promisecan be considered fulfilled by both parties. In addition, the agreement mustprescribe remedies for conditions unfulfilled by one of the parties involved.The essential feature defining these requirements are: "capacity," "mutual assent," and "consideration."
Capacity:
Fundamentally, two or more parties enter into a contract. A "party" may be anindividual, a group of people, or even an "artificial person" such as a corporation. The parties to a contract must have the legal capacity to enter intothat contract. Persons who are deemed incompetent due to physical or mentalillness lack capacity to enter into contracts. Minors, which in most states refers to persons under the age of 18, may enter into contracts. However, anycontract involving a minor is voidable. When a contract involving a minor goes unfulfilled it may be affirmed or disaffirmed when the minor reaches maturity, or legally becomes an adult. Parties to a contract also must have the legal right to do what the contract promises.
for example, one cannot sell whatone does not own.
Consideration:
Consideration must also be present for a legal contract to be formed. The essence of consideration is that a party receives some kind of benefit in returnfor his promise. Consideration may consist of money, goods, or a promise todo or not do something. The statement "I'll give you my guitar" is not a contract because the giver would receive no specified consideration in return.
Interpretation of Contracts:
When interpreting contracts courts tend to avoid questions regarding the intent of the parties involved in the contract and rely on the contract itself, particularly when the contract is in written form. Under the "plain meaning" rule, the words of a contract are to be read according to their plain, everyday meanings, with the exception of terms that have been specifically defined in the contract. To discourage the drafting of deliberately ambiguous language, any ambiguous terms in a contract is interpreted in a way that penalizes the party that drafts the document. In other words, if "party X" deceptively drafts a contract with ambiguous language such that the terms of the contract benefit the interests of "party X" over "party Y," the ambiguous language of the contract will deliberately be interpreted to benefit "party Y."
Contracts are frequently modified to reflect a change in preference by one ofthe parties or because unforeseen circumstances arise. For instance, a person may contract with a builder to have a house constructed but during the course of construction he or she may desire that more rooms be included, or the builder may be forced to change the agreed-upon completion date due to problems with the weather. Both the initial contract and the subsequent modifications may be in written or oral form. Contracts can be designed to accommodate future complications by including provisions that leave matters open.
For example, a contract may leave certain matters to be resolved at a later date to reflect future conditions such as changes in prices or availability of goods. Such modifications may be in writing but are more often simple oral agreements.
Interpreting contracts is often difficult because of the complexity and subjectivity of the agreement. To simplify the process a set of standard procedures for interpretation are usually followed. First, the latest and most final agreement of the parties is considered to be the valid contract. Second, written agreements are given much more weight than oral agreements. In fact, in cases involving written contracts, oral evidence that either contradicts or supplements a written agreement, may not be introduced if the written contract is deemed final and complete. Oral evidence may be considered when a contractis final but incomplete, but only as an addition to the contract; oral evidence in contradiction of the basic terms of the contract is not allowed.
Enforcement of Contracts:
When a party does not fulfill the promise made in a valid, enforceable contract at the time such fulfillment, or "performance," is due, the contract has been "breached." At this point legal remedy may be sought. (Legal remedy may be sought even before this time, if a party has indicated it will not honor its previously agreed upon promise.) Most commonly, some form of monetary compensation is sought for a breach of contract. In some cases, the contract may have stipulated the maximum amount of money recoverable in the event of breach. Specialized laws regulate damages for many types of contracts, such as sales of goods, real estate transactions, and employment contracts.