Contract Analysis

A contract is used every day in business and used to assist in conducting business transactions. Kubask, Brennan and Browne define a contract as “a legally enforceable exchange of promises or an exchange of a promise for an act that assures the parties to the agreement that their promises will be enforceable (Kubask, Brennan and Browne, 2015).” Most individuals sign a contract without reading the fine print. For example, when someone obtains a cell phone with a large company such as Sprint or Verizon, they typically sign a one year or two year contract. Sprint or Verizon may offer plans with no contracts, but most times they have better promotions for the customer that signs a contract. Inside that contract there are the legal terms and conditions of that contract. Typically, the contract will have a penalty or costs associated with terminating the contract early. The contract allows the company to guarantee revenue for the time period the contract is signed for as long as they provide the services in the contract. Companies prefer contracts because it is enforceable and allows Sprint or Verizon to provide services without taking a risk of not receiving payment for services or frequent cancellations without due cause. Without contracts, conducting business would be challenging for both parties. There are a many types of contracts and requirements for a contract. In the case with Marshall, there was a void contract signed and an implied contract.
Contracts are governed by the Uniform Commercial Code (UCC) regarding sale of goods. The National Conference of Commissioners and American Law Institute created the commercial law regarding contracts for all states (Kubask, Brennan and Browne, 2015). “A sale consists of the passing of title to goods from buyer to seller for a price. A contract for the sale of goods includes those for present and future sales. Goods are tangible personal property (Kubask, Brenna and Browne, 2015).” Sales happen all the time. Every…