Introduction to Business Law: Contracts & Sales
The Role of Contracts in Business
Contracts are legally enforceable agreements that allow businesses and individuals to exchange goods, services, money, and other valuable rights with confidence. Contract law establishes the rules for creating, interpreting, enforcing, and terminating agreements. The Uniform Commercial Code (UCC) also provides specialized rules governing many sales of goods.
- Contracts create enforceable legal obligations.
- Common law governs most service contracts.
- The UCC governs many sales of goods.
- Business law promotes certainty and fairness in commercial transactions.
Note
Understanding whether common law or the UCC applies is the first step in analyzing most contract questions.
Summary
Contract law provides the legal framework for most business transactions.