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Running head: LAW OF CONTRACTS AND AGENCY
Law of Contracts and Agency Law
LAW OF CONTRACTS AND AGENCY
Law of Contracts and Agency
Sole Proprietorships are lawful entities that can transact business as provided by
American laws since there are provisions for their formation and those that guide their
transactions (University of Richmond). The Law of Contracts and Agency Law are vital
legislations that safeguard business agreements and relations between managers and subordinates
respectively. The Law of Contracts sees to it that formation, interpretation, and remedy of
contracts id done lawfully (T. Muris, 1980) while Agency Law sees to it that construction and
management of agency relationships are lawful and respectful (Hill and Jones, 1993). Even in
sole proprietorships, a business still owes the customers a duty of care to avert negligence
(Eisenberg, 1989). Moreover, Company Law allows for many formations for the existence of
companies beyond the sole proprietorship (Brian Cheffins, 1997).
Determine if the contracts with the businesses will be governed by common law or the
Uniform Commercial Code (UCC), and explain why.
The Common Law on Law of Contracts would apply despite most of the transactions
being in commercial nature and therefore, the contracts should be addressed in a way that would
not contradict American laws. Due to the nature of the agreement, variables like display orders
and price per display would yield to elements of a contract thereby giving the law of contracts
the more validation. The Uniform Commercial Code would limit the functions of the company to
interstate deals whereas common law would open the company to doing business throughout the
United States and even abroad (Lumen Learning). Moreover, there needs to be uniformity
between the Commercial codes of the various states the company intends to operate in hence will
limit the business to the geographical locations hence reducing the scope of the business.
LAW OF CONTRACTS AND AGENCY
Furthermore, the law is limited to governing commercial deals only, leaving out
important aspects like ownership of companies and recruitment procedures in hiring personnel.
Commercial contracts are those that involve the sale and leasing of equipment, banking, loans
and titles of documents and investment securities which are at a trivial stake in the case of Ucme
Fireworks (Lumen Learning). Common-Law, on the other hand, gives companies and businesses
a bigger license to operate anywhere as long as the activities are lawful and ethical. The
measures towards the settlement of breaches of contracts are more stringent in the case of
common law compared to the Uniform Commercial Code, hence offering the company higher
chances of compliance from the parties they enter contracts with (Lumen Learning). Moreover,
other than the formation and ownership of companies, Common Law governs the recruitment of
personnel and dissolution of companies hence offering a logical platform for being the preferred
law in this context.
Analyze whether the owner formed a contract with the b...
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