Part VI Banking and Credit Card Transactions in .NET

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564 Part VI Banking and Credit Card Transactions
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The UCC is intended to give guidance to courts in fashioning appropriate remedies. One method that the UCC recognizes is to look to the parties past course of performance and prior dealings to gure out what they intended by the terms of the present contract. For example, assume I have purchased slaughtered chickens from you for my restaurant business for the past 10 years. Suddenly, without prior negotiation or communication, you begin sending me live, squawking chickens. This is de nitely a deviation from our prior course of dealings, and the court will likely nd that we have a contract for the purchase and sale of slaughtered chickens.
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Vendor and customer reports can be extremely useful in establishing a course of prior dealings and past performance under the UCC.
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The UCC requires that contracts be suf ciently de nite to be enforceable. The Code isolates ve essential terms for enforcement of a contract: parties, price, quantity, time, and place of performance. Hmmm, you think. Sounds familiar. Where have I seen those terms before Answer: Your QuickBooks sales forms. Indeed, sales forms and purchase orders such as those shown in Figures 33-1 and 33-2 contain most of the essential terms necessary to create a binding contract. But, you nervously inquire, what about the terms that are not speci ed For example, what if the forms that you usually send out don t say anything about time of performance The UCC anticipates this common scenario.
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Figure 33-1: This invoice contains all the terms essential to create a binding contract under the Uniform Commercial Code.
33 Creating Binding Contracts with QuickBooks
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Figure 33-2: This purchase order contains all the terms essential to create a binding contract under the Uniform Commercial Code.
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When one of the essential terms of a contract is not speci ed, the courts may look to the UCC to supply the missing term if it is reasonable to infer the existence of a contract. For example, if the invoice does not specify the time of performance, the UCC authorizes the court to assume that the parties intended a reasonable time frame for performance. The court looks to similar contracts within the industry to ascertain what might be a reasonable time frame.
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It is unbelievably easy to modify the provisions of the UCC if you decide that you don t like them. Simply draft a written contract containing other terms. The provisions of the UCC apply only when the parties have speci ed no other terms. Any terms that the parties agree to on their own automatically supersede the UCC provisions.
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The Statute of Frauds
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Both the UCC and the common law provide a wide range of legal mechanisms for enforcing oral contracts and discerning their terms. But not all oral contracts are legally enforceable. Most jurisdictions in the United States have adopted requirements that certain types of contracts must be in writing. This type of state law is called a Statute of Frauds. The types of contracts covered
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566 Part VI Banking and Credit Card Transactions
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by a Statute of Frauds vary by state. Typically, these contracts must be in writing to be enforced: A contract that, by its terms, cannot be performed within one year Contracts for the sale of an interest in real estate A promise to guarantee or pay the debts of another Contracts that extend beyond the lifetime of one of the parties Contracts involving a promise to marry
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Using QuickBooks to Avoid Disputes over Contract Terms
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You don t want to leave any contractual terms to chance. It s in nitely better to specify them rather than risk having them imposed by a judge that is inattentive, unduly impressed by the other side s lawyer, or just plain stupid. Or to have to make huge concessions to the other party just to have to avoid the uncertainties of litigation. Of course, most judges are conscientious and competent, but if they were all perfect, there wouldn t be such a thing as an appeal.
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