Answer to Question #140197 in American Law for Sue

Question

How are contracts between merchants different from contracts between “regular” people? Why do you think merchants are treated differently?

Answer 1

Common law directs contractual transactions such as services, real estate, employment, insurance, immaterial assets. The UCC oversees contractual transaction with properties, goods, and material objects (for example, an acquisition of a vehicle). Thus, an agreement is any understanding or prearrangement grasped between two or more entities. A contract is a precise type of agreement, which, by its terms and components, is validly necessary and enforceable in a court of law.