Running head: BUSINESS LAW AND SOLE PROPRIETORSHIP 1
Business Law and Sole Proprietorship
Name
Institution
, BUSINESS LAW AND SOLE PROPRIETOR 2
Business Law and Sole Proprietorship
Determine if the contract will be governed by common law or the Uniform Commercial
Code and explain why.
Common law and uniform commercial code are rules that used in the United States of
America as a way to harmonize all its states. Common law mainly deals with intangible assets,
real estate, insurance, employment contracts, and services. On the other hand, Uniform
Commercial Code deals with sales of securities and sale of other goods. Contracts governed by
the common law includes terms such as price, quantity, time, performance, the identity of the
offer, and nature of work where else contract governed by uniform commercial code primarily
focus on the amount.
The agreement with the business will be efficient if governed by the common law due to
its flexible terms compared to the uniform commercial code. Common law has a statute
limitation of four to six years as compared to uniform commercial code which is limited to four
years. The term that guides on discharging the common law is favorable due to its fewer
possibility occurrences such as death or insanity as compared to the uniform commercial code
whereby its released in case of impracticability (Prabhat, 2011).
Five essential elements of an enforceable contract
Key features of any binding contract include; Offer- it is a demand or a promise that is
distinct in nature from the other party. Acceptance- this is a form of an act that mirrors the
offer. Change to the terms of offer it will lead to a counteroffer. Capacity- it defines the ability of
a given party to enter into a lawful contract whereby the law excludes intoxicated, minors and
mentally incompetent individuals. Legitimate purpose-a contract to be enforceable must be legal
to be valid and enforceable in a court of justice. Consideration-this is a receipt of a lawful benefit
Business Law and Sole Proprietorship
Name
Institution
, BUSINESS LAW AND SOLE PROPRIETOR 2
Business Law and Sole Proprietorship
Determine if the contract will be governed by common law or the Uniform Commercial
Code and explain why.
Common law and uniform commercial code are rules that used in the United States of
America as a way to harmonize all its states. Common law mainly deals with intangible assets,
real estate, insurance, employment contracts, and services. On the other hand, Uniform
Commercial Code deals with sales of securities and sale of other goods. Contracts governed by
the common law includes terms such as price, quantity, time, performance, the identity of the
offer, and nature of work where else contract governed by uniform commercial code primarily
focus on the amount.
The agreement with the business will be efficient if governed by the common law due to
its flexible terms compared to the uniform commercial code. Common law has a statute
limitation of four to six years as compared to uniform commercial code which is limited to four
years. The term that guides on discharging the common law is favorable due to its fewer
possibility occurrences such as death or insanity as compared to the uniform commercial code
whereby its released in case of impracticability (Prabhat, 2011).
Five essential elements of an enforceable contract
Key features of any binding contract include; Offer- it is a demand or a promise that is
distinct in nature from the other party. Acceptance- this is a form of an act that mirrors the
offer. Change to the terms of offer it will lead to a counteroffer. Capacity- it defines the ability of
a given party to enter into a lawful contract whereby the law excludes intoxicated, minors and
mentally incompetent individuals. Legitimate purpose-a contract to be enforceable must be legal
to be valid and enforceable in a court of justice. Consideration-this is a receipt of a lawful benefit
