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all about business law
You may know what business is. You may even be familiar with law. Today, we're going to put them together—business law. We'll deal with one super-huge business law concept here—contracts…
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time codes
  1. Contract Law 1:02:05
    1. What is a Contract? 1:02:11
    2. Sources of Contract Law 1:02:44
      1. The Uniform Commercial Code (UCC) 1:02:58
        1. Article two: sale of goods 1:03:26
      2. Common law 1:04:07
        1. Case study 1:04:33
      3. Requirements for a Valid Contract 1:05:55
        1. Legal Capacity 1:06:16
        2. Legality 1:06:26
        3. Agreement 1:06:36
        4. Consideration 1:16:51
1. Based on what youíve learned about business law, do you think oral contracts are legal? If so, in what instances?

2. Which area of contract law do you think is less clear-cut: the Uniform Commercial Code, or common law? Why?

3. Did any of the seven reasons an offer can terminate-revocation, rejection, counteroffer, lapse of time, intervening illegality, destruction of subject matter, death or insanity- surprise you? If so, why did it surprise you?

4. Letís say a friend promises you a giant hug for your birthday, but all you get is two thumbs up. Why canít you sue your friend in Hug Court for breach of contract?

5. What examples of contract law have been in the news recently? If the case hasnít been resolved, how do you think it will turn out?

Case Study: "Make a Deal"

Pretend you are on a business game show called "Make a Deal," where businesspeople have an opportunity to make a deal on the spot with a surprise guest. After successfully answering a series of business law questions, you make it to the final round.

The host, Melody McFry, brings out the surprise guest: a 93-year-old grandmother of 14! The audience applauds wildly (audiences love grandmothers). The sweet, little old lady makes you an offer: a pair of plastic beads for $5,000.

You really don't want to make a trade (come on, a pair of beads?) but the second you say, "I don't know…", the audience boos and begins chanting "Make a Deal! Make a Deal!" You cave in to peer pressure and make the deal.

After the show ends and the lights die down, you realize you made a terrible mistake. You have enough money to pay her, but you've been planning for months to use that money to expand your web site, www.IHateBeads.com. What do you do?


• Are you in a valid contract? Why or why not?

• Let's assume the beads are worth around $50. Would it make a legal difference if the grandmother offered to trade you $500 for the beads? What about $50?

• Would it make a difference if your web site is named www.ILoveBeads.com?

• What if all contestants received $5000 for making it to the final round?

• How could you have legally rejected the offer without saying the word "no"?

Click here to go to the test.

purchase soon

Torts are not delicious German pastries, but are in fact, "wrongs." More exactly, they are wrongs one person does to another - other than by a breach of contract.
Acceptance — When the offeree communicates her or his assent of the offer.

Agreement — A mutual acceptance of the contract's contents by all parties.

Common law — Law formed through court decisions.

Consideration — Something of legal value which is given in exchange for something else.

Contract — A legally enforceable promise or set of promises.

Counteroffer — When the offeree responds to the offer with an offer of her or his own.

Good — A tangible item that a person can buy or sell.

Legal detriment — To give consideration. Someone must either give up an existing right or accept a duty.

Legality — The concept that a contract must be for a legal purpose.

Offer — A proposal made by one person to another.

Offeree — The party who either accepts or does not accept the offer.

Offeror — The party who makes the offer.

Peppercorn Theory — The business law concept that something as insignificant as a peppercorn can be sufficient consideration when given in exchange for a promise.

Rejection — When an offeree says, "No" to the offer.

Revocation — When the person that's made an offer decides she or he wants to take it back.

Service — Something one party performs or provides for another party.

Uniform Commercial Code — A set of rules to govern commercial transactions.

Explore some business law related websites. Remember, you will be leaving the Standard Deviants TV website.
Learn a little bit about the history of contracts. You'll find ancient contracts from Mesopotamia—some over four thousand years old!

More than you ever wanted to know about contract law can be found here!

Find an in-depth listing of the Uniform Commercial Code (UCC) here.

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