Offer and Acceptance in Business Laws of education

This are laws related to contracts

1. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 11
Offer and Acceptance
7-17-1Creation of Offers
7-27-2Termination of Offers
7-37-3Acceptances
CHAPTER 7
Lessons

2. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 22
Creation of Offers
List the elements required to form a contract
Describe the requirements of an offer
LESSON 7-1
GOALS

3. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 33
WHAT IS A CONTRACT?
A contract is an agreement that courts
will enforce.
Contracts between two parties are the
basis for all economic activity.
Contracts are the legal links between
the individuals and companies
producing and consuming goods and
services.

4. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 44
CONTRACT
REQUIREMENTS
There are six major requirements that must be
satisfied before courts will treat transactions as
contracts.
Offer and acceptance
Genuine assent
Legality
Consideration
Capacity
Writing

5. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 55
REQUIREMENTS
OF AN OFFER
Expression of intent to create a legal
obligation
Offer must be complete and clear
Offer must be communicated to the
offeree

6. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 66
Termination of Offers
Describe how an offeror can end an offer
Tell how an offeree can end an offer
Explain how the parties can create offers that
cannot be ended by the offeror
LESSON 7-2
GOALS

7. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 77
HOW CAN
OFFERS BE ENDED?
Revocation by the offeror
Time stated in the offer
Reasonable length of time
Rejection by the offeree
Counteroffer
Death or insanity of either the offeror or
offeree

8. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 88
HOW CAN AN OFFER
BE KEPT OPEN?
Options
Firm offers

9. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 99
Acceptances
Discuss the requirements of an effective
acceptance
Determine at what point in time an acceptance is
effective
LESSON 7-3
GOALS

10. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 1010
HOW ARE
ACCEPTANCES CREATED?
Who can accept an offer?
Acceptance must match the offer
Acceptance must be communicated to
the offeror

11. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 1111
ACCEPTANCE MUST
MATCH THE OFFER
Mirror image rule
Goods

12. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 7Chapter 7Slide Slide 1212
ACCEPTANCE MUST BE
COMMUNICATED TO THE OFFEROR
Silence as acceptance
Unilateral acceptance
Bilateral acceptance
When acceptance is effective

13. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 1313
Genuine Agreement
8-18-1Duress and Undue Influence
8-28-2Mistake, Misrepresentation, and Fraud
CHAPTER 8
Lessons

14. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 1414
Duress and
Undue Influence
Define genuine agreement and rescission
Identify when duress occurs
Describe how someone may exercise undue
influence
LESSON 8-1
GOALS

15. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 1515
GENUINE AGREEMENT
Genuine agreement is an agreement to
enter into a contract that is evidenced by
words or conduct between the parties.

16. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 1616
RESCISSION
Rescission is backing out of the
transaction by asking for the return of
what you gave in the transaction, and
offering to give back what you received.

17. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 1717
DURESS
Duress occurs when one party uses an
improper threat or act to obtain an
expression of agreement
Threats of illegal conduct
Threats to report crimes
Threats to sue
Economic threats

18. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 1818
WHAT IS UNDUE INFLUENCE?
Undue influence occurs when one
party to the contract is in a position of
trust and wrongfully dominates the other
party.
There are two key elements in undue
influence
The relationship
Unfair persuasion

19. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 1919
Mistake, Misrepresentation,
and Fraud
Describe the kinds of mistakes that can make a
contract void or voidable
Determine when misrepresentation has occurred
Identify when fraud has occurred
Discuss the remedies for mistake,
misrepresentation, and fraud
LESSON 8-2
GOALS

20. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 2020
WHAT IS A
UNILATERAL MISTAKE?
A unilateral mistake occurs when one
party holds an incorrect belief about the
facts related to a contract.
Recognized unilateral mistake
Induced unilateral mistake

21. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 2121
WHAT ARE
MUTUAL MISTAKES?
When there is a mutual mistake both
parties have an incorrect belief about an
important fact.
Mistake about the subject matter
Mistake of law

22. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 2222
WHAT IS
MISREPRESENTATION?
For a statement to be treated as
misrepresentation, three elements are
required
Untrue statement of fact
Active concealment
Silence
Materiality
Reasonable reliance

23. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 2323
INNOCENT
MISREPRESENTATION
Innocent misrepresentation occurs when
a party to a contract does not know that a
statement he or she made is untrue.

24. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 2424
FRAUDULENT
MISREPRESENTATION
Fraudulent misrepresentation occurs
when a party to a contract knows that a
statement he or she made is untrue.

25. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 8Chapter 8Slide Slide 2525
FRAUD AND
REMEDIES FOR FRAUD
Misrepresentation must be intentional or
reckless
The misrepresentation or concealment
must injure
Remedies for fraud
Rescission
Damages
Punitive damages

26. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 2626
Mutual Consideration
9-19-1What Is Consideration?
9-29-2Legal Value and Bargained-For
Exchange
9-39-3When Is Consideration Not Required?
CHAPTER 9
Lessons

27. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 2727
What Is
Consideration?
Define consideration
Determine when there is no consideration
LESSON 9-1
GOALS

28. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 2828
THREE REQUIREMENTS
OF CONSIDERATION
Each party must give an act,
forbearance, or promise to the other
party.
Each party must trade what they
contribute to the transaction for the other
party’s contribution.
What each party trades must have legal
value.

29. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 2929
CONSIDERATION
Act, forbearance, or promise
Trading
Legal value
Adequacy of consideration
Nominal consideration

30. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 3030
Legal Value and
Bargained-For Exchange
Identify when there is legal value
Determine when there is a bargained-for
exchange
LESSON 9-2
GOALS

31. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 3131
LEGAL VALUE
Illusory promises
Termination clauses
Output and requirements contracts
Implied duty of fair dealings
Existing duty
Existing public duty
Existing private duty
Settlement of liquidated debts
Settlement of unliquidated debts
Release
Composition of creditors

32. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 3232
BARGAINED-FOR EXCHANGE
Mutual gifts
Past performance

33. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 3333
When Is Consideration
Not Required?
Identify when promissory estoppel applies
Discuss situations in which consideration is not
needed
LESSON 9-3
GOALS

34. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 3434
PROMISSORY ESTOPPEL
The following conditions must be met for promissory
estoppel to apply:
The promisor should reasonably foresee that the
promisee will rely on the promise.
The promisee does, in fact, act in reliance on the
promise.
The promisee would suffer a substantial economic
loss if the promise is not enforced.
Injustice can be avoided only by enforcement of the
promise.

35. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 9Chapter 9Slide Slide 3535
EXCEPTIONS TO THE
CONSIDERATION REQUIREMENT
Promises to charitable organizations
Statute of limitations
Uniform Commercial Code
Firm offers
Modifications

36. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 3636
Law of Capacity
10-110-1Capacity Rights
10-210-2Limitations on Capacity Rights
CHAPTER 10
Lessons

37. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 3737
Capacity Rights
Identify parties who have contractual capacity
Identify what contracts can be disaffirmed
Explain the role of capacity in organizations
LESSON 10-1
GOALS

38. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 3838
WHAT IS CAPACITY?
Contractual capacity is the ability to
understand that a contract is being made
and its general meaning.

39. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 3939
CAPACITY RIGHTS
Necessaries
Non-necessaries
Disaffirmance
Ratification

40. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4040
MINORS
In most states, people under the age
of 18
In a few states, age of majority is 19
or 21
Also referred to as being in their
minority or under the age of majority

41. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4141
EMANCIPATION
Emancipation is the severing of the
child-parent relationship.
Early emancipation
Formal emancipation occurs when a court
decrees the minor emancipated.
Informal emancipation arises from the
conduct of the minor and the parent.

42. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4242
EVIDENCE OF INFORMAL
EMANCIPATION
The parent and minor agree that the
parent will cease support
The minor marries
The minor moves out of the family home
The minor joins the armed forces
The minor gives birth
The minor undertakes full-time
employment

43. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4343
MENTAL INCAPACITY
Mental incapacity is much less
precisely defined than minority.
The test is whether the party
understands the consequences of his or
her contractual acts.

44. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4444
INTOXICATION
Intoxication can arise from using
alcohol, from using drugs, or inhaling
products such as glue or aerosols.
Many courts are reluctant to allow
disaffirmance for intoxication when it
may injure another.

45. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4545
WHICH CONTRACTS
CAN BE DISAFFIRMED?
Necessaries are goods and services
that are reasonably required to maintain
a person’s lifestyle.
Non-necessaries are all other goods
and services or relative luxuries.

46. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4646
CAPACITY IN
ORGANIZATIONS
Some people who work for organizations
have the capacity to bind the organizations to
contracts.
Capacity to contract can be created when the
employer tells an employee that he or she is
authorized to bind the organization.
Capacity to contract can be created when an
organization leads others to believe that a
person has certain authority.

47. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4747
Limitations on
Capacity Rights
Identify the time when a contract cannot be
disaffirmed
Identify contracts that cannot be disaffirmed
Explain the consequences of misrepresenting
age
LESSON 10-2
GOALS

48. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4848
TIME OF DISAFFIRMANCE
Any time while still under the incapacity
Within a reasonable time after attaining
capacity

49. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 4949
RATIFICATION
Ratification may consist of either of the
following
Giving a new promise to perform as
agreed
Any act that clearly indicates the party’s
intention to be bound

50. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 5050
RETURN OF GOODS
OR SERVICES
Loss of value
Obligations of party with capacity

51. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 5151
WHAT CONTRACTS
CANNOT BE DISAFFIRMED?
Court-approved contracts
Major commitments
Banking contracts
Insurance contracts
Work-related contracts
Sale of realty
Apartment rental

52. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 10Chapter 10Slide Slide 5252
MISREPRESENTING
YOUR AGE
In most states minors who lie about
their age may disaffirm their contracts.
In these states, a minor who gives a
false age may be held liable for the tort
of false representation

53. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 5353
Legality of Contracts
11-111-1Which Agreements Are Illegal?
11-211-2Enforceability of Illegal Agreements
CHAPTER 11
Lessons

54. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 5454
Which Agreements
are Illegal?
Describe general features of contracts which
make them illegal
Describe particular illegal contracts
LESSON 11-1
GOALS

55. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 5555
ILLEGAL AGREEMENTS
Contracts made illegal by specific statute
Agreements that obstruct legal procedures
Agreements made without a required
competency license
Agreements that affect marriage negatively
Agreements that restrain trade unreasonably

56. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 5656
CONTRACTS MADE ILLEGAL
BY SPECIFIC STATUTE
Illegal gambling
Agreements to pay usurious interest
Agreements involving illegal
discrimination

57. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 5757
AGREEMENTS THAT OBSTRUCT
LEGAL PROCEDURES
Agreements that delay or prevent
justice are void.
Examples include
Promises to pay non-expert witnesses in a
trial to testify or pay for false testimony
Promises to bribe jurors
Promises to refrain from informing on or
prosecuting an alleged crime in exchange
for money or other valuable consideration

58. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 5858
AGREEMENTS MADE WITHOUT A
REQUIRED COMPETENCY LICENSE
All states require that persons in certain
occupations and businesses pass
exams and receive a license to ensure
that they are competent.
Persons who lack the required
competency license may not enforce
the contracts they make in doing the
regulated work.

59. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 5959
AGREEMENTS THAT AFFECT
MARRIAGE NEGATIVELY
The law encourages marriage and family
life by making agreements that harm or
interfere with marriage unenforceable.

60. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 6060
AGREEMENTS THAT RESTRAIN
TRADE UNREASONABLY
Price fixing
Resale price maintenance
Allocation of markets
Covenants not to compete

61. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 6161
Enforceability of
Illegal Agreements
Describe how courts help parties to illegal
contracts under the common law
Describe how courts help parties to illegal
contracts under the UCC
LESSON 11-2
GOALS

62. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 6262
HOW DO COURTS TREAT PARTIES
TO ILLEGAL CONTRACTS?
Generally, courts treat illegal agreements
in two different ways depending upon
whether they are governed by the
common law or the UCC.

63. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 6363
COMMON LAW
Protected victims
The excusably ignorant
Rescission before the illegal act
Divisible contracts

64. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 11Chapter 11Slide Slide 6464
THE UCC
Unconscionability
Procedural unconscionability
Substantive unconscionability
Remedies

65. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 6565
Written Contracts
12-112-1What Is the Statute of Frauds?
12-212-2Contracts Within and Exceptions to
the Statute of Frauds
12-312-3How Are Contracts Interpreted?
CHAPTER 12
Lessons

66. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 6666
What Is the
Statute of Frauds?
Describe the statute of frauds
Discuss the consequences of failure to comply with the
statute
Describe what writing satisfies the statute under the
common law and the UCC
Explain how the signature influences enforcement of
contracts
LESSON 12-1
GOALS

67. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 6767
MUST ALL CONTRACTS
BE IN WRITING?
Certain contracts are not enforceable in
court unless a signed writing proves
their existence.
Most contracts are enforceable even if
there is no writing, or written proof.

68. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 6868
WHAT IS THE
STATUTE OF FRAUDS?
Contracts within the statute of frauds
Executed contracts
Executory contracts

69. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 6969
WHAT WRITING DOES
THE STATUTE REQUIRE?
Multiple writings
Content requirements under the common law
All essential terms
Evidence of a contract
Content requirements under the Uniform
Commercial Code
Signature requirement
UCC and single signature
Form of the signature

70. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 7070
Contracts Within and Exceptions
to the Statute of Frauds
Identify those contracts which are within the
statute of frauds
Describe exceptions where contracts within the
statute need not be in writing to be enforced
LESSON 12-2
GOALS

71. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 7171
WHAT CONTRACTS ARE WITHIN
THE STATUTE OF FRAUDS?
Contract for the sale of goods for $500 or more
Contract to sell an interest in real property
Contracts that require more than one year to
complete
Contract to pay a debt or to answer for the legal
obligation of another person
Exception—main purpose rule
Contract for which the consideration is marriage

72. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 7272
How Are Contracts
Interpreted?
Describe how conflicting oral and written
communications are reconciled
Explain how conflicts among written elements in
a contract are reconciled
LESSON 12-3
GOALS

73. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 7373
WHAT IS THE PAROL
EVIDENCE RULE?
Consequences of applying the parol
evidence rule
Exceptions to the parol evidence rule

74. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 7474
HOW ARE CONFLICTS IN WRITTEN
TERMS INTERPRETED?
Specific rules of construction
Analysis
Words
Authors of ambiguity
Implied reasonableness

75. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 7575
Transfer of
Contractual Obligations
Describe which rights can be assigned
Identify what duties can be delegated
LESSON 13-1
GOALS

76. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 7676
ASSIGNING
CONTRACTUAL RIGHTS
Assignable rights
Non-assignable rights
Form

77. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 7777
RIGHTS THAT MAY
NOT BE TRANSFERRED
A right created under a contract that prohibits
transfer of the contractual rights
Claims for damages for personal injuries
Claims against the United States
Rights to personal services, especially those of
a skilled nature, or when personal trust and
confidence are involved
Assignments of future wages, as limited by
state statutes

78. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 7878
DELEGATING
CONTRACTUAL DUTIES
Contractual duties are legal obligations
created by a contract.
A person cannot delegate to another any duty
where performance requires unique personal
skill or special qualifications.
A person who delegates contractual duties
remains legally obligated and responsible for
proper performance even though someone
else may actually do the required work.

79. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 7979
WHAT ARE THE
OBLIGATIONS OF OBLIGORS?
Notice to obligor
Obligor’s liability
Obligor’s breach

80. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 8080
Performance of Duties
Describe how contracts are usually satisfied
Explain the ways contracts can be discharged
other than by performance of their terms
LESSON 13-2
GOALS

81. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 8181
HOW ARE CONTRACTS
USUALLY DISCHARGED?
When a contract is made, the parties
take on certain duties.
Discharge of a contract is a termination
of duties that ordinarily occurs when the
parties perform as promised.
Most contracts are discharged by
complete performance of the terms of
the contract.

82. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 8282
HOW ELSE CAN CONTRACTS
BE DISCHARGED?
By agreement
Rescission
Accord and satisfaction
Novation
By impossibility of performance
Destruction of the subject matter
Performance declared illegal
Death or disability
By operation of law

83. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 8383
WHAT IS THE EFFECT OF
TENDER OF PERFORMANCE?
An offer to perform an obligation is a tender.
If the obligation requires the payment of
money, rejection of an offer to pay the money
does not discharge the debt nor does it
prevent the creditor from collecting later.
A tender of only part of the debt is not a valid
tender.

84. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 8484
WHAT CONTRACTS ARE WITHIN
THE STATUTE OF FRAUDS?
Contract for the sale of goods for $500 or more
Contract to sell an interest in real property
Contracts that require more than one year to
complete
Contract to pay a debt or to answer for the legal
obligation of another person
Exception—main purpose rule
Contract for which the consideration is marriage

85. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 8585
How Are Contracts
Interpreted?
Describe how conflicting oral and written
communications are reconciled
Explain how conflicts among written elements in
a contract are reconciled
LESSON 12-3
GOALS

86. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 8686
WHAT IS THE PAROL
EVIDENCE RULE?
Consequences of applying the parol
evidence rule
Exceptions to the parol evidence rule

87. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 12Chapter 12Slide Slide 8787
HOW ARE CONFLICTS IN WRITTEN
TERMS INTERPRETED?
Specific rules of construction
Analysis
Words
Authors of ambiguity
Implied reasonableness

88. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 8888
Contractual Duties
13-113-1Transfer of Contractual Obligations
13-213-2Performance of Duties
CHAPTER 13
Lessons

89. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 8989
Transfer of
Contractual Obligations
Describe which rights can be assigned
Identify what duties can be delegated
LESSON 13-1
GOALS

90. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 9090
ASSIGNING
CONTRACTUAL RIGHTS
Assignable rights
Non-assignable rights
Form

91. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 9191
RIGHTS THAT MAY
NOT BE TRANSFERRED
A right created under a contract that prohibits
transfer of the contractual rights
Claims for damages for personal injuries
Claims against the United States
Rights to personal services, especially those of
a skilled nature, or when personal trust and
confidence are involved
Assignments of future wages, as limited by
state statutes

92. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 9292
DELEGATING
CONTRACTUAL DUTIES
Contractual duties are legal obligations
created by a contract.
A person cannot delegate to another any duty
where performance requires unique personal
skill or special qualifications.
A person who delegates contractual duties
remains legally obligated and responsible for
proper performance even though someone
else may actually do the required work.

93. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 9393
WHAT ARE THE
OBLIGATIONS OF OBLIGORS?
Notice to obligor
Obligor’s liability
Obligor’s breach

94. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 9494
Performance of Duties
Describe how contracts are usually satisfied
Explain the ways contracts can be discharged
other than by performance of their terms
LESSON 13-2
GOALS

95. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 9595
HOW ARE CONTRACTS
USUALLY DISCHARGED?
When a contract is made, the parties
take on certain duties.
Discharge of a contract is a termination
of duties that ordinarily occurs when the
parties perform as promised.
Most contracts are discharged by
complete performance of the terms of
the contract.

96. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 9696
HOW ELSE CAN CONTRACTS
BE DISCHARGED?
By agreement
Rescission
Accord and satisfaction
Novation
By impossibility of performance
Destruction of the subject matter
Performance declared illegal
Death or disability
By operation of law

97. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 13Chapter 13Slide Slide 9797
WHAT IS THE EFFECT OF
TENDER OF PERFORMANCE?
An offer to perform an obligation is a tender.
If the obligation requires the payment of
money, rejection of an offer to pay the money
does not discharge the debt nor does it
prevent the creditor from collecting later.
A tender of only part of the debt is not a valid
tender.

98. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14Slide Slide 9898
How Courts
Enforce Contracts
14-114-1Remedies for Breach of Contract
14-214-2Denial of Remedies for Breach
of Contract
CHAPTER 14
Lessons

99. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14Slide Slide 9999
Remedies for
Breach of Contract
Distinguish between minor and major breach
Describe when the remedies of rescission and
specific performance are available
Define four types of damages and tell when they
will be awarded by courts
LESSON 14-1
GOALS

100. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
100100
TYPES OF BREACH
AND REMEDIES
How does minor breach affect the victim’s
duties?
How does major breach affect the victim’s
duties?
What are rescission and restitution?

101. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
101101
TYPES OF MONEY DAMAGES
Compensatory
Consequential
Liquidated
Punitive
Nominal

102. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
102102
SPECIFIC PERFORMANCE
Money damages inadequate
Subject matter unique
Ability to supervise
Clean hands

103. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
103103
Denial of Remedies
for Breach of Contract
Describe the election of remedies
Describe the requirement to mitigate damages
Explain how the statute of limitations and
bankruptcy affect remedies for breach of
contract
LESSON 14-2
GOALS

104. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
104104
HOW CAN ELECTION OF ONE REMEDY
BAR USE OF ANOTHER REMEDY?
An injured party must elect, or choose,
a remedy when suing.
Specific performance and damages
cannot be recovered for the same
breach because specific performance is
not available when damages are an
adequate remedy.

105. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
105105
HOW CAN FAILURE TO MITIGATE
DAMAGES ELIMINATE REMEDIES?
The injured party must usually take
reasonable steps to mitigate damages.

106. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
106106
HOW CAN WAIVER
ELIMINATE REMEDIES?
Sometimes a party intentionally and
explicitly gives up a contractual right.
This is called a waiver.

107. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
107107
HOW CAN THE STATUTE OF
LIMITATIONS ELIMINATE REMEDIES?
Statutes in all states deny any remedy if
suit is not commenced within a certain
time after a legal claim arises.
Four years is a common time for the
statute of limitations for contracts.
Three years is a common time for the
statute of limitations for torts.

108. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
108108
HOW CAN BANKRUPTCY
ELIMINATE REMEDIES?
Bankruptcy is a legal proceeding whereby
a debtor’s assets are distributed among his
or her creditors to discharge debts.

109. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 14Chapter 14
Slide Slide
109109
REMEDIES FOR
BREACH OF CONTRACT
ConsequentialCompensatory Liquidated Punitive Nominal
Rescission
and
Restitution
Damages
Specific
Performance
Injunction Waiver
Breach of Contract

110. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
110110
Sales Contracts
15-115-1Sales
15-215-2Ownership
15-315-3Special Rules for Sales Contracts
CHAPTER 15
Lessons

111. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
111111
Sales
Define sale and explain how the UCC governs
the sale of goods
Identify unconscionable contracts and contracts
of adhesion
Distinguish between payment, delivery, and
transfer of title of goods
LESSON 15-1
GOALS

112. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
112112
WHAT IS A SALE?
A sale is a contract in which ownership of (title to)
goods transfers immediately from the seller to the
buyer for a price.
If the transfer of ownership is to take place in the
future, the transaction is a contract to sell rather
than a sale.
Price is the consideration for a sale or contract to sell
goods.
When parties exchange goods for goods, the sale is
a barter.

113. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
113113
SALES OF GOODS
UNDER THE UCC
The Uniform Commercial Code (UCC)
governs sales of goods and contracts to
sell goods in the future.
Goods are tangible movable personal
property such as airplanes, books,
clothing, and dogs.

114. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
114114
CONTRACTS FOR
PERSONAL SERVICES
In many situations, the contract is
primarily for personal services.
Such contracts are not sales because
any goods supplied are merely
incidental.

115. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
115115
MUST DELIVERY AND PAYMENT
BE MADE AT THE SAME TIME?
In the basic sales transaction, payment,
delivery, and transfer of title take place
simultaneously at the seller’s place of
business.
A bill of sale is a receipt that serves as
written evidence of the transfer of
ownership of goods.

116. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
116116
OTHER METHODS OF SALES
CONTRACTING UNDER THE UCC
Sales contracts may be made through
a traditional exchange of offer and
acceptance.
UCC also recognizes alternative
methods.
Proposal for addition
Purchase order form
Sales order form

117. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
117117
UNCONSCIONABLE
SALES CONTRACTS
The UCC provides that a court may find
that a contract or a clause of a contract is
unconscionable, that is, grossly unfair
and oppressive.

118. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
118118
Ownership
Discuss the benefits and burdens of ownership
of property
Compare the various methods of acquiring
property
Explain the unique role of merchants and why
and how they are treated specially by the law
LESSON 15-2
GOALS

119. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
119119
BENEFITS OF OWNERSHIP
Any rise in value belongs to the owner
Goods may be enjoyed or used as the
owner pleases
Goods may be squandered or
destroyed

120. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
120120
BURDENS OF OWNERSHIP
Owners may be taxed
Freedom to use one’s property may be
limited by government regulation
Owner suffers loss when goods deteriorate
because of the passage of time
Owner suffers loss when goods are lost,
stolen, destroyed or damaged unless covered
by insurance

121. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
121121
TRANSFERS OF OWNERSHIP
AND POSSESSION
Gift
Conveyance
Lease
Sale
Contract to sell
Barter
Negotiation
Assignment
Bailment

122. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
122122
Special Rules
for Sales Contracts
Explain the need for the statute of frauds
Discuss the instances in which the statute of
frauds will be applied
LESSON 15-3
GOALS

123. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
123123
STATUTE OF FRAUDS
Sales contracts are generally valid and
enforceable in court whether they are
oral, written, or implied from the conduct
of the parties.
Under the statute of frauds, sales of
goods for $500 or more must be
evidenced by a writing to be
enforceable in court.

124. LAW FOR BUSINESS AND PERSONAL USE LAW FOR BUSINESS AND PERSONAL USE © SOUTH-WESTERN PUBLISHING© SOUTH-WESTERN PUBLISHING
Chapter 15Chapter 15
Slide Slide
124124
WHEN IS A SIGNED WRITING NOT
REQUIRED UNDER THE STATUTE?
Goods received and accepted by the
buyer
Buyer pays for goods and seller accepts
payment
Goods specially made not suitable for
sales to others
Party against whom enforcement sought
admits oral contract made