BA 265 week 3 Discussion The Uniform Commercial Code

The Uniform Commercial Code

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The Uniform Commercial Code

The uniform commercial code is a comprehensive code addressing most areas of commercial law. The unification process was essential for the main purpose of making business activities more predictable and efficient as well as having consistent business laws across the American states among them are the various jurisdictions. The two differ in the nature of their existence and purpose at the time of inception. They also differ on the application of their respective principles. The uniform commercial code (UCC) differs from the contract common law on various instances.

First and foremost, UCC looks at the sale of goods and services whereas contract law looks at contracts for service, real estates, insurance, tangible assets and employment. UCC focuses on the quantity in consideration whereas contract focuses on the quantity as well as price, performance, time, the nature of the work among other consideration. Next, with regards to the principle of acceptance common law contract requires an acceptance to be an exact mirror image of the terms of the offer for it to be legally recognized as acceptance whereas under UCC only changes that affect contract materially will have an impact.

Also, under common contract law a contract can be modified only if there is additional consideration for modification whereas the UCC can without any additional consideration. Under the UCC a contract may be discharged due to impracticability. While suing privity to contract is required in order to litigate whereas in UCC it is not necessary. The other differences arise from the statutes of limitation. Under UCC it is restricted to 4years while common contract law its 4-6 years. Finally, a very important variant of the two is that UCC has punitive damages whereas common law has no punitive damages.