An express contract usually has clearly stipulated terms whether in writing or verbally. This shows the contribution and roles of all parties involved and the consequences of a breach. On the other hand, an implied contract is not clearly laid down but the intention to enter into a contract is depicted in all parties and this lead to a binding contract. For instance, a person who orders food in a restaurant is bound to pay even for what he eats.
Bilateral contract is an agreement entered by at least two individuals or groups. It is one of the common forms of contract especially in the business world. An example of a bilateral contract is the one between a homeowner and a telephone or internet service provider. They both agree to each other’s terms. On the other hand, in a unilateral contract, only one party gives the terms, and the other parties enter into a contract based on whether they agree to the terms or not. For instance, a person who loses a car and gives a reward to anyone who helps in recovering it gives a unilateral offer.
A void contract is one that is not recognized by the law and, therefore, cannot be backed while voidable contract is bound by the law and is recognized. Void contract becomes ineffective or unrecognized as soon as the parties involved enters into it while voidable contract can only be broken by one of the parties involved upon entering. A contract may become void if it involves minors as they are subject to changing their stand or if it involves some illegal activities. For instance, a contract between two people that involves the sale of stolen goods becomes void upon its formation, and neither party can seek compensation in a court of law in a case of breach.
For an agreement to be termed as a contract, it must have the following. Consideration, offer, mutual assent, acceptance of the offer, capacity and legally accepted terms. This can be clearly written down or verbal. A contract that contains all these becomes voidable as long as it does not include illegal activities or involve minors.
A consideration is a valuable item that is offered by people who wish to enter into a binding contract. For a consideration to be termed valid an agreement between all parties has to be reached involved in terms of promise and acceptance of what is being offered. This can take the form of money or any other valuable thing, service as well as behavioral change. This is an important part of a contract as it constitutes most conflicts and breach of contract when one party fails to meet their promise.
The uniform commercial code was formed to facilitate smooth interstates commercial activities. It has lead to improved business on a national basis based on the similar regulations binding business. With the United States being the most powerful country in the world, it regulations affect even other countries. Similarly, these codes affect the goods imported into the country as well as the exports. Some of the effects experienced include elimination of speculation through standardized commercial expectations. The UCC has also brought about commercial stability and lowered the cost of doing business. Imported goods that have to pass through other states are subjected to similar regulations and, therefore, ease of international business is experienced.
References
Cross, F & Miller, R. (2008). The Legal Environment of Business: Text and Cases -- Ethical, Regulatory, Global, and E-Commerce Issues. Boston: Cengage Learning.
Moses, M. (2012). The Principles and Practice of International Commercial Arbitration. Cambridge: Cambridge University Press.
