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Contract law in the United States is governed by state common law and the Uniform Commercial Code (UCC). A contract is a legally binding agreement between two or more parties, in which each party agrees to perform or refrain from performing certain acts in exchange for something of value. Some common elements of a contract include an offer, acceptance, consideration (something of value exchanged), and mutual assent (agreement to the terms). Contracts can be written or verbal, and they can be enforceable in court if certain requirements are met.
What are the features of Contract Law in the United States?
Some special features of contract law in the United States include the following:
·Freedom of contract
Parties are generally free to contract as they see fit, as long as the contract is not illegal or against public policy.
·Statute of frauds
Certain types of contracts, such as contracts for the sale of land or contracts that cannot be performed within one year, must be in writing to be enforceable.
·Parol evidence rule
This rule generally prohibits the introduction of evidence of prior or contemporaneous agreements or representations that contradict the terms of a written contract.
·Good faith and fair dealing
Both parties to a contract must act in good faith and not take advantage of the other party's vulnerability.
·Remedies for breach of contract
The remedy for a breach of contract will typically be monetary damages, but in some cases, a court may order specific performance of the contract.
·The Uniform Commercial Code (UCC)
The UCC governs commercial transactions, such as the sale of goods, and provides a uniform set of rules for these transactions across the United States.
Federal law may pre-empt state contract law in certain situations, such as when a contract involves interstate commerce.
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