Mistakes, Fraud, and Voluntary Consent

Published: 2019-11-05 09:30:00
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The law of contract requires that organizations understand the basic procedures that need to be followed for them to avoid unnecessary mistakes when entering into a business agreement. As a result, it became necessary for the U.S. government to come up with the Uniform Commercial Code (UCC) in 1952 for the purposes of harmonizing business transactions such as contract agreements. After the commercial law has been harmonized, it becomes easy for organizations to understand their roles and responsibilities in every business transaction they entre, making it possible to have unnecessary disputes and losses. This code has been adopted in the United States and has been beneficial to the businesspersons, thus helping to increase the rate of transactions. As per article 2 of the Uniform Commercial Code, any sale of goods must be made in accordance to the law requirements, meaning that if the parties to the contract to sale agrees on the issues that cannot be protected by the law, the deal may not stand once presented in court if need be. Therefore, the most important thing is ensuring that businesspersons and organizations must understand the law of contract that governs them before entering into an agreement.

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Once an organization in the U.S. has complied with the UCC provisions in the U.S., it qualifies to receive a UPC, which is a six digit number used to identify all companies that have managed to follow the law requirements. It should be noted that the Uniform Code Council is the only body tasked with the responsibility of ensuring that the suppliers that meets the minimum conditions have been licensed with the uniform per code prefix number (UPC). Therefore, for the organizations that follows the guidelines, they qualify to be considered as companies or firms with the necessary mandate to influence their decisions in a lawful way. Nevertheless, the Uniform Commercial Code covers specific business transactions (contracts), meaning that those with the UPC must be aware of this to avoid unnecessary disputes. Some of the business deals that the UCC can cover include the sale of goods, commercial papers, real estate transactions, documents of title, and secured transactions. The eventual result in this case is a complete eradication of preventable mistakes and fraudulent activities.

The UCC Contract Law

Organizations enter into agreements (contracts) on a regular basis, meaning that it is necessary for them to come up with strategies that can minimize any form of misunderstanding and fraudulent activities. Nevertheless, before making a decision to buy or sale goods, it becomes necessary for the parties involved to ensure that they have complied with the fundamental rules as pertains to the sale of goods. Article 2 of the UCC has many rules that stands out, thus can be used to mitigate any form of adversary that can arise as a result of the breach of a contract. The article is detailed and contains various aspects from one section to another and includes issues dealing with the formation of a contract, the obligations of the respective parties involved, commercial rules related to the contract, and the procedure to be followed in case of a breach. Additionally, once a party to the agreement has decided not to meet his/her obligations, there are laid down procedures that need to be followed without any form of contradiction ((Brown & Sukys, 2013). Consequently, most states in the U.S. have adopted the UCC provisions as they have considered it necessary to have a smooth running of business transactions without many issues related to agreements between parties.

In most cases, such business cointracts exist between the buyer and the seller, meaning that the UCC is applicable on a daily basis in most organizations. No company exists in a vacuum, as they need each other and the output in a firm can result to be the input in another. The meaning here is that there exists long-term and short-term contracts that must be obeyed and drawn as per the UCC provisions in article 2 for the economy to be relatively stable. Moreover, the UCC model is structured in such a way that the U.S. states have a role of modeling or modifying it to fit the current business needs, but this should not harm the already signed ones between organizations. Consequently, organizations operating in different U.S. states must regularly check the commercial code guidelines for them to ensure that they remain on the safe side of the law.

The UCC Contract Rules

Business transactions that involve the formation of a contract must include some writing concerning the agreement between the parties involved. Consequently, it becomes necessary for the businesspeople to enter into a contract as stipulated in article 2 of the UCC. According to the provisions, the details of the transaction must be written, meaning that they must follow article 2 of what must be followed. After determining what is necessary and not as per the article, the parties involved will find it easy for them to come up with strategies that can guarantee the achievement of the desired results (Lando, 2011). Under special circumstances, the article can be applicable to oral transactions but the businesspersons are not encouraged to relay on this since a lot of legal formalities will have to be followed.

Obligations of the Parties to the Contract, Breach and Remedies

The initial step in the formation of a contract is that at least two parties must be involved, where there is an element of an offer and acceptance. The implication here is that one party must be willing to offer something to another that should also voluntary accepts. Therefore, before the agreement starts, it is necessary for them to determine the level of benefit that they are going to receive and then make a decision of whether they should continue or not. However, if they commit themselves and one party eventually decided to pull out, then it means that the contract has been breached and this may attract the attention of the commercial courts as explained in article 2. In a contract, it is not necessary to have a definitive moment of acceptance between the parties involved for it to be considered as valid. Additionally, some terms can be missing, but still be regarded as enforceable, but this depends on the type of agreement entered into. Therefore, the parties involved in a contract must be able to access every situation and determine faster if it will be for their best interests or not. Additionally, it is necessary for them to ensure that their agreement is based on what has been pre-determined by their respective organizations if they are acting as representatives.

After the parties have made an agreement, they may modify it depending on several variables. If they want the contract to include more elements such as the supply of a different category of goods, they should both agree and make the necessary amends. The idea is also applicable if they want t change the type of business they are dealing with but in this case, the law must be followed. The parties cannot use the initial agreement as a strategy to start modifying it to include the supply of goods that have been prohibited. As a result, the UCC, as provided for in article 2, has given the specific guidelines that should be followed in the process of modifying a contract, amongst them being a voluntary agreement. One of the main factors to be remembered in this case is that for a contract modification to take place, it is not necessary for any additional consideration to be included.

Contract formation requires a commitment and willingness of the parties involved to have a good will for each other. However, if they focus on meeting their goals it may be difficult for them to reach at an agreement. In most cases, there must be some form of negotiations that makes it possible to reach an agreement on what should be done or not. Apart from the common general statements such as the obligation of the seller to deliver goods and then the buyer make a payment as per the contract agreement, there are a lot of issues that should be factored in as per article 2. For instance, there must be a risk factor involved and the parties should agree on its distribution in case it occurs. However, if the agreement is no done, the law provision will have to be followed to ensure uniformity and fairness. Additionally, it is not a must for the consideration to be measured in monetary terms as it may include the transaction dealing with the exchange of property, that should be measured using various variables. Some of the criteria that can be used in this case may include its real market value and supply and demand constraints. Therefore, there can be an exchange of goods for services, or goods for goods (such as property).

Breach of a contract can take different forms. For instance, the seller can deliver inferior goods or the buyer may not be willing or be in a position to pay for the goods ordered. Nevertheless, article 2 comes in handy as it provides the guidelines that will have to be followed in such circumstances. Consequently, after one party has failed to meet its obligations in the contract, this considered as the wrong party, then the non-breaching one is entitled to a compensation, a remedy, or a restriction for the breach. The implied meaning here is that the affected party should eventually benefit from the deal as initially agreed through the fining of the other one (the contract breaching party).

Idiosyncrasies of Labor and Employment, Administrative, Consumer, and Environmental Law

Employment discrimination is one of the major variables that organizations must avoid as much as possible for them to be considered to be exercising ethical and professional standards. The employment law prevents incidents in which the employment discrimination is defended, thus giving the populace a chance to work in any company of their choice so long as they meet the minimum selection and recruitment criteria. Employers are required by the law not to discriminate employees based on their groups or specific grounds. Some of the variables that should not be considered in determining the professionalism and the possibility of being recruited in an organization may include color, sex, age, military status, race, disability, and national origin.

In terms of administrative and consumer laws, the employers should ensure that the employees have been treated with standard respect and that promotions are given based on the order of merit. Additionally, during the production process some of the most important variables to be considered include the ability and willingness of the management to offer better working conditions and the production of quality goods that may not adversely affect the consumers (Weiss, 2012). The consumer laws therefore protect the society from any form of harm as a result of unethical production of goods that does not meet the minimum quality standards. The process mainly starts from the administrators who need to set the criteria that the employees should follow.

Organizations should be involved in the protection and conservation of the environment as this is an important variable in their existence. If they cannot follow this guideline, it will be difficult for them to exist in the long-run. This is primarily because of the environmental conservation groups and the government initiative. Consequently, such organizations will have to be closed, as they are unwilling to follow the standard environmental protection guidelines. for instance, as explained in the Clean Water Act (CWA), organizations must not participate in any form of water pollution, meaning that they waste products should be disposed off correctly and harmlessly. Additionally there are the recommended gas emission levels that should not be...

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Mistakes, Fraud, and Voluntary Consent. (2019, Nov 05). Retrieved from https://speedypaper.com/essays/mistakes-fraud-and-voluntary-consent

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