Difference between Common Law of Contracts Vs UCC Law of Sales
Every
business is subject to laws of each state at which they operate. As law are
different from state to state, doing business becomes very much difficult, in
1949 the national conference of commissioner promulgated the
uniform commercial law, which contains uniform rules that governs business, and
every state need to accomplish UCC as a commercial statue. As every state
accept UCC, all business are subjected to common law in every state under UCC
Article, it creates informality in legal matter in various state.
The
following shows the difference between common law and UCC law of sales.
Common Law of Contracts
|
UCC Law of Sales
|
It applies to contracts of real
estate, insurance, service, employment contracts, sale of other intangible
assets
|
This law applies to sale of goods and
securities.
It doesn’t include sale of services. |
Common law recognize firm offer rule:
Any changes leads to rejection of offer.
|
Acceptance with minor changes does not
cancel
the offer as original terms are still enforceable. |
Option contract are irrevocable
|
Merchant’s firm offers are
irrevocable if it is
writing with 3 months’ time period. |
Contracts are modifiable only with
additional consideration are placed.
|
No additional consideration is required
if made
in good faith |
Offer should include Price, quantity,
time of performance, identity of offeree, nature of work.
|
It include only quantity of goods to
be valid
|
Contracts are discharged due to
impossibility like insanity/death of parties concerned or destruction of
subject matter.
|
Contract
is discharged as per UCC only because
of impracticability. |
References
(2010, Jan 25). Differences between Common Law &
UCC Sale: Retrieved from http://www.cpanet.com/cpa_forum/forum_posts.asp?TID=29832
Cheeseman, H. R.
(2006). Formation of sales and lease contract. In Contemporary Business
and Online Commerce Law fifth edi (pp. 286-298). Upper Saddle River, New
Jersey : Person Education Inc.
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