BUSA 310 Lecture 6 Selling and Buying a House Contract Example Description of house in contract with the price tag as well as a timeline for when moving occurs Home inspector hired to make sure what is functioning and what is not in order to negotiate in price Buyer want to know what is in the house when it will be done conditions of sale is house as is what exact house noncompliance clause penalty clause Contracts are meant to prepare for the worst and help to protect against these things IF there is an ambiguity in the contract that the attorney and client drafters they are held liable Typo in a contract Challenger could win because both parties read and agreed sometimes courts have to look beyond the four corners of the document to make the decision Chance to cure if there is a breach of contract then the party has a chance to fix their mistake Consequential damages when the party has to replace a product service and can sue for the difference inconvenience Choice of Law Interstate contracts the law that you agreed upon will apply to that contract Choice of forum where you can bring the lawsuit Arbitration Clause before going to sue goes to mediator to see damages or breach and settle before court Entire agreement keeps other side from arguing about another deal Severability if one of the portions is void the rest of the contract is still enforceable and in tact UCC Uniform Commercial Code Rules 1 Any form of the contract is ok fax email hardcopy etc all of the terms of the contract do not have to be in the actual contract 2 The AMOUNT must be in the contract contract could be void without it 3 Statue of Fraud anything over 500 must be in contract 4 Must be signed by the defendant without it is no deal but it can still be enforced on the defendant s end make the merchant do what the contract says What is a good If it is movable and not money or security or stock bond it is considered a good What is a merchant People that are doing business in a particular area Warranty Raises intent Two types 1 Expressed written or oral what the seller says the product does 2 Implied merchantability what it is sold for and fitness for particular purpose Cannot disclaim expressed warranty Warranties cannot be limited usually goes to industry standard Product Liability Privity not a party to the deal so there is no standing to sue Two ways to sue 1 Negligence made product in unsafe matter and didn t live up to standard of care as well as negligent in product warnings must warn about everything 2 Strict Liability when the product left the manufacturer it was in a defective condition