Contracts and Leases in Common Law and UCC Essay

Contracts and Leases in Common law and UCC - Essay ExampleNorm whollyy, a contract is enforced and governed by the virtues of the country where it was made. In the United States of America, a contract is governed by twain types of state laws, that is, the common law and the Uniform Commercial Code (UCC) (Bagley and Dauchy, 2012). Common law is a law which governs contracts for services and contracts that are not governed by the Uniform Commercial Code. Most contracts such as booking agreements, general business agreements and leases are controlled by common law. Common law contracts can either be bilateral or unilateral. However, the contracts are valid only if the three elements of common law contract organic law are met. The elements of formation are offer, acceptance and consideration (Bagley and Dauchy, 2012). The uniform technical code (UCC) governs the contracts between merchants and the cut-rate sale of goods. The law was written by the National Conference of Commissione rs on Uniform State Laws (NCCUSL) and the American Law Institute (ALI). It was published in 1952 to harmonize the law of sales and other commercial transactions in the United States. Although it has not been fully enacted, some provisions of the code have been adopted by all the fifty states of the US (Fullerton, 2011). Previously, the code was divided into 9 articles however, after a number of reviews and revisions, the code is straightaway divided into eleven articles with each giving provisions that relate to a particular area of commercial law. Article 1, gives the definitions of terms used in commercial law and the general principles that apply to the UCC. Article 2 covers all contracts pertaining to the sale of goods. Article 2A covers all transactions pertaining to leases of goods. Article 3 covers negotiable instruments such as checks and promissory notes.