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Week 3 Learning Team Assignment – Understanding Contract Law, Risk and Opportunities
Cynthia M. Cervantes
Myphuong Le
Karl Limpin
Laura Semmler
Cezner Velez
Business Law 531
University of Phoenix
Dr. Maurice Rosano, MBAM, JD
May 30, 2009

Contract Law in Private Enterprise
Discuss the importance of contract law to the private market system. How does
Contract law provides flexibility and precision in business dealings?

Response: One of the most common legal transactions a business will be involved in is a contract. Contracts are governed by laws in the state where the contract is made. Sound business agreements will result with a basic understanding of contract law. Businesses must be able to rely on commitments in order to grow their business. Contract law also provides legally enforceable agreements in the event that a dispute arises.

Contract law provides flexibility by allowing the formalized agreement between two or more parties to relate to any particular subject. Contracts can cover an extremely broad range of matters, including the sale of goods or real property, the terms of employment or of an independent contractor relationship, the settlement of a dispute and ownership of intellectual property developed as part of a work for hire. Contracts provide precision in their ability to be written to an exact specification.

Sources of Contract Law
(a) What is meant by the common law of contracts?
(b) What is the UCC?

Response: According to (Jennings, 2006, p. 497) there are three general sources of contract law for contracts entered into in the United States: common law, the Uniform Commercial Code (UCC), and the new sources of law evolving in response to e-commerce—the Uniform Electronic Transactions Act, the Uniform Computer Information Transactions Act, and the Electronic Signatures in Global and National

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