Business Law with UCC Applications,13e The Essentials of Contract Law Chapter 7 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

7-2 Learning Objectives 1.Define contract. 2.Explain the origin of the law merchant. 3.Discuss the relationship between common law and the law merchant. 4.Identify the four elements of a contract. 5.Explain the objectives of contract law.

7-3 Learning Objectives 6.Explain the place of the UCC in contract law. 7.Distinguish contracts from other agreements. 8.Explain the role of privity and agency on contract law. 9.List the contracts that must be in writing to be enforceable. 10.List the characteristics of a contract.

7-4 The Essentials of Contract Law The History of Contract Law –Mercantile Law, Ancient Rome, –Capitalism, and the Church –The Characteristics of the Law Merchant –The Law Merchant and Common Law

7-5 The Essentials of Contract Law Mercantile Law, Ancient Rome, Capitalism, and the Church –Agriculture, Technology, and Population –The Development of the Law Merchant

7-6 The Essentials of Contract Law The Characteristics of the Law Merchant –Neutrality of the Law Merchant –Universality and the Law Merchant –Mutuality and the Law Merchant –Involvement and the Law Merchant

7-7 The Essentials of Contract Law The Law Merchant and the Common Law –Fair Courts and Staples Courts –Admiralty Courts, Arbitration, and Statutory Law

7-8 The Essentials of Contract Law The Multidimensional Nature of Contract Law –The Elements of a Contract –The Objectives of Contract Law –Multidimensional Principles of Contract Law

7-9 The Essentials of Contract Law The Elements of a Contract –Mutual Assent –Consideration –Capacity –Legality

7-10 The Essentials of Contract Law The Objectives of Contract Law –Rehabilitation in Contract Law –The Payment Damages –Recovery Limits and Equitable Relief

7-11 The Essentials of Contract Law Multidimensional Principles of Contract Law –Contracts and the Uniform Commercial Code –Contracts and Other Agreements –Contracts and Privity –Contracts and Agency Law –Contracts and the Statute of Frauds –Exceptions to the Statutory Rule –Rules of Interpretation

7-12 The Essentials of Contract Law Contractual Characteristics in Contract Law –Valid, Void, Voidable, and Unenforceable Contracts –Unilateral and Bilateral Contracts –Express and Implied Contracts –Informal and Formal Contracts –Executory and Executed Contracts

7-13 The Essentials of Contract Law Express and Implied Contracts –Express Contracts –Implied Contracts

7-14 The Essentials of Contract Law Informal and Formal Contracts –Informal Contracts –Formal Contracts –Contracts of Record