What is a common law contract?

Contract Formation under common law requires an offer, acceptance, consideration, and mutual intent. Legal Precedents play a crucial role, as past court decisions influence the outcome of new cases. In contracts, common law principles are like the roots of a tree, giving life and structure to how agreements are made and interpreted.

What is an example of a contract?

A contract is when two or more parties enter an agreement where an offer is made and then accepted. Each party benefits out of this contract. Agreements can either be oral, written, informal or formal, or implied, such as a long-term business relationship. Contract examples include promissory notes, leases, and rental agreements, to name a few.

What are the two main sources of law governing contracts?

In the United States, two primary sources of law govern our contracts: the common law and the Uniform Commercial Code. The Uniform Commercial Code (UCC) article 2 governs contracts between a merchant and the sale of goods. Essentially, the UCC contains two sets of rules for contracts.