The Contract Law in California

The Contract Law in California is governed by the Uniform Commercial Code of the United States. The definition of contract law is also provided under this code. It is important to understand the contract law in California. Because when you sign a contract then you have rights and liabilities too. Generally, the contracts are commitments of the parties with each other and they are bound by law.

contract law in california, the definition of contract law
Contract Law in California

When parties constitute a contract and one of the parties fails to perform their obligation then the other party can file suit against them for the performance of the contract or can claim compensation for any loss that occurred. The contract laws are different from State to State.

The contract law regulates the obligations constituted by the contracting parties, and if one of the parties breaches the obligations of the contract then the contract is breached and can be made liable for the penalty.

The Definition of Contract Law

The definition of a contract is provided under the Uniform Civil Code, but before discussing the definition of a contract let’s see the definition of agreement.

The agreement means “every promise and every set of promises, forming the consideration for each other”.

Promise (Commitment) + Consideration = Agreement.

The contract means anything that is an agreement and enforceable by the law of the land. This is the law definition of a contract.

Agreement + Enforceable by law = Contract.

OR

Enforceable Agreement = Contract

Conditions for Valid Contract

The agreement becomes a contract when the following conditions are fulfilled. These are;

  1. Mutual Consent 
  2. Capacity of Parties
  3. Lawful Consideration and Object
  4. Not Declared as Void by Law

1. Mutual Consent

The parties entering into a contract must give the offer and acceptance at their own will and consent without any external factors or external forces. 

2. Capacity of Parties

The contracting parties must be able to understand the terms and conditions agreed upon during the formation of a contract. Here we have given some examples that every contracting party must have;

The parties must be adults i.e. above 18 years of age. If the party is below the majority age then the contract is null and void.

3. Lawful Consideration and Object

The consideration and object to the contract must be lawful and does not violate any legal provision. If any consideration or object or partly consideration or party object violate any provision of law then such agreement is not enforceable by law.

For example, if the consideration or object of the agreement is forbidden by the law, fraudulent, defeating any legal provision, implies injury to the person or property or is immoral.

4. Not Declared as Void by Law

If an agreement is expressly declared as void by law. Such agreements are void. For example, smuggling, gambling etc.

Conclusion

The Contract law in California is governed by the Uniform Commercial Code of the United States and, the definition of contract law is discussed. The contract is always formed after the agreement. The agreement is the first step towards the formation of the contract.

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