USA Contract Law Assignment Example | Topics and Well Written Essays - 2000 words

USA Contract Law - Assignment Example The contracting parties need to be of legal age and sound competence and they should agree mutually on the terms of the contract. The contract law is governed by the provisions of the UCC and the Restatement of Contracts. The UCC governs the sale of tangible and movable assets, property leases, and financial transactions. The common law principles of a contract are summarised, restated and published as the Restatement of Contracts by the American Law Institute. Legal professionals quote the provisions of the Restatement in their written opinions, though this does not have the force of law.[2] When a contract is made, both parties expect some benefit from it and the terms and conditions are consensual. Since unforeseen events in the future may create a loss for any one party, it is essential that both parties are very thorough about the meaning of the content to which they are putting their signature. The whole concept of contracts deal with the future and in many cases gives rise to problems; one or both parties may find that the events that they had anticipated had not gone their way. The problem may be due to a 'mistake.'When one or both parties, to the contract, erroneously believed that certain facts in the contract are true, then a 'mistake' is said to have occurred. In contract law, a mistake can be used to invalidate the agreement. There are two different types of mistakes, according to common law. A 'unilateral mistake' occurs when only one party is mistaken about the terms or contents of the contract. A 'mutual mistake' or a 'common mistake' occurs when both par ties, to the contract, are mistaken about the same term or condition in the contract. Since these mistakes can be used as 'excuses' to invalidate a contract, the provision of 'objective standard of agreement' becomes important in contract law.