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Contracts in the Commonwealth of Puerto Rico

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Contracts in the Commonwealth of Puerto Rico
LAW 421- Contemporary Business Law
July 8, 2014

On week three of our course, we were ask to write a word paper on Contracts in the Commonwealth of Puerto Rico in which we will describe the contracts according with the following cases; * Muñiz v. COPAN, 113 D.P.R. 157 (1982) * Trinidad v. Chade, 153 D.P.R. 280 (2001) * Las Marías v. Municipio, 159 D.P.R. 868 (2003)
First, we must define contract in order to understand what role they have in our business law. A business contract is one of the most common legal transactions one can be involved in when running or working on a business. No matter what type of business one may run, having and understanding contract law is the key to creating sound business agreement that will be legally enforceable in the event that a dispute may arises. A contract is a legally enforceable agreement between two or more parties that creates an obligation to do or not do a particular thing. The term “party” can mean an individual person, company, or corporation. Contracts are usually governed and enforced by the laws in the state where the agreement was made (Melvin, 2011). Depending upon the subject matter of the agreement (i.e. sale of goods, property lease), a contract may be governed by one or two types of state law. * The Common Law; the majority of the contract (employments agreements, leases, general business agreements) are controlled by the state’s common law made, form court decisions over the years. * The Uniform Commercial Code (UCC); the common law does not control contracts that are primarily for the sales of goods. They are controlled by UCC, a standardized collections of guidelines that govern the law of commercial transactions.
Most states have adopted the UCC in whole or in part, making the UCC’s provisions part of the state’s codified laws

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