Module 5
1. What are the elements needed to form a contract?
Is an Agreement to meet in the park at noon
enforceable? Why? Why not?
What is a “Purchase Order?
How would you characterize the terms of a Purchase
Order?
2. Is there a difference between a purchase order (Invoice)
and a contract? If so, compare the two instruments and
outline the difference between the two.
3. Are Purchase Orders controlled under Contract law or the
Uniform Commercial Code (UCC), or both?
4. Is there an advantage of a contract over an invoice? If so,
what are the advantages and disadvantages of each
instrument?
5. Under the UCC case study facts, how many transactions
are there, one or two transactions? Explain?
6. How or when is an enforceable agreement formed in
contract negotiations? At what point, with a Purchase
Order (Invoices), is an enforceable agreement established
under the UCC? Is there a binding agreement in the
Sally/Jake case? Why or why not?
7. What facts are in Sally’s favor of canceling the order? List
them supported by the facts and the applicable statutory
sections.
8. What facts are in Jack’s favor in enforcing payment? What
sections of the UCC support Jake’s arguments?
9. In Contract Law, you must have a “meeting of the minds”
as part of an enforceable agreement. Another element
requires that the Acceptance must match the Offer. What
is this Contract Rule called?
10. Common-Law Contracts require that “Acceptance” must
not add or change any terms of the Offer. What is it called
when an Acceptance of an Offer changes terms of the
Offer?
11. In the Sally/Jake case, is there a “meeting of the minds”
under the UCC when the merchants use Invoices that
differ in terms? Explain why or why not. What UCC
sections support your answer? List the Code sections and
summary of applicable parts.
12. Have Sally and Jake formed a contract under the facts? If
so, what terms are enforceable, and what UCC sections
support your answers? How should this dispute be
resolved?
13. Which facts and Code sections would support the position
that Sally did not accept the goods? List the facts and
summarise the applicable code sections.
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