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Contracts • Applicable Law
K#005
Legal Definition
The common law governs (1) services contracts, (2) real estate contracts, and (3) anything that is not a sale of goods.
Plain English Explanation
When dealing with contracts, there are generally two sets of laws that can be applied. The first is common law, and the second is UCC law. Common law governs services (like when you pay someone to do something for you), real estate, and anything that isn't the "sale of goods."
Hypothetical
Hypo 1: Bob owns a house. Sam owns a painting company. Bob hires Sam to paint his house. Result: Painting a house is a service, so common law applies to their contract.
Hypo 2: Bob owns a house. Sam owns a painting company. Bob wants to paint his own house, but contracts with Sam to supply the paint. Result: Paint is a good, so UCC law applies to their contract.
Hypo 2: Bob owns a house. Sam owns a painting company. Bob wants to paint his own house, but contracts with Sam to supply the paint. Result: Paint is a good, so UCC law applies to their contract.
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