Business Law Outline

Chapter 1 – Introduction to Contracts

* What is a Contract (K)?

* K – an agreement btwn 2 or more parties that a court will enforce.

* Provides stability & structure within which business can be conduced more efficiently.

* Private law of K protects promises that have been made.

* K – a promise or set of promises for the breach of which law gives a remedy, or performance of which the law in some way recognizes as a duty.

* K – an agreement btwn 2 or more persons who agree to:

* Perform some act now

* Refrain from performing some act now

* Perform some act in the future

* Refrain from performing some act in the future

* Sources of Commercial Law

* Common law K – covers variety of things, including sales of services.

* Louisiana law is covered in “conventional obligations,” under the La Civil Code and covers all sorts of Ks.

* Art.2 of UCC governs sales (2) and leases (2A) of goods.

* Sale – passing of title of goods from seller to buyer for a price

* Goods – movable (moved from place to place) and tangible (have physical existence).

* A check is not tangible

* Classification of Ks: Bilateral & Unilateral

* Bilateral Ks – involve two promises: promise for a promise

* Offeror promises something to the offeree, who gives a promise in return.

* No performance is required for K to be formed.

* K comes into existence when promises are exchanged.

* Unilateral Ks – involve only one promise – a promise for PERFORMANCE

* Offeree can accept the offer only by completing the K performance

* K comes into existence when K is performed (ex: sell house)

* Incomplete or partial performance

* Unilateral K can be revoked by offeror anytime before the offeree’s performance, unless the offeree has already begun or has substantially completed performance....