Contract Law Overview: What is the Gateway Issue on ALL Contracts Essays?
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Contract Law Overview: What is the Gateway Issue on ALL Contracts Essays?
The gateway issue in all contracts essay questions will be to determine whether the rules set forth in the common law or Article 2 of the Uniform Commercial Code (UCC) governs your fact pattern.
The common law governs if a contract deals with real estate or services (e.g., hiring someone to mow your lawn). The UCC governs if a contract deals with goods (e.g., agreement to buy 100 reams of paper from Office Depot).
For mixed contracts (contracts that have elements of both services and goods), two rules operate to determine whether the common law or UCC applies.
First, the all-or-nothing rule maintains that the common law and UCC cannot both govern at the same time. Thus, mixed contracts must fall into one class or the other. However, there is an exception for divisible contracts (contracts that can divide the goods and services portions into separate mini-contracts).
Next, the predominant purpose of the contract determines whether the common law or UCC governs (i.e., whether a good or service plays a bigger role in the contract). If the predominant purpose of the contract involves the purchase or sale of goods, the UCC applies. If the predominant purpose of the contract involves services or real estate, the common law applies.
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![Contract Law Gateway Issue: Common Law vs. Article 2 of the Uniform Commercial Code (UCC) [PREVIEW]](http://i.ytimg.com/vi/Tqm4ztMX2-g/mqdefault.jpg)
![Contract Law Gateway Issue: Common Law vs. Article 2 of the Uniform Commercial Code (UCC) [PREVIEW]](/img/tr.png)
Great topic. I think a good example of why this is crucial is the California bar exam contracts essay for February 2006, which I was just working on. The essay question started off saying, "Marla is a manufacturer of widgets." It's easy to jump to conclusions and jot down "UCC" in the margins, assuming it's going to be a sale of goods. But you later find out that Marla is contracting with Larry so he can find buyers for her widgets, so it's actually contract for a broker service...and therefore common law. And that's why it's important read the pattern first without jotting anything down.
Absolutely! I've seen similar fact patterns on the Uniform Bar Exam. This seems to be a classic bar exam misdirection. I'll make sure to note this to our students in the future. Great point!
You're so passionate when speaking about the law. Your effort is appreciated.
My final is tomorrow, my materials from class plus you, have made me feel more comfy, less anxious. Thank you so much!
No problem, happy to help! Hope your exam went well 🙏.
You’re videos are so great! I need multimedia to learn not just textbooks lol
Brilliance... on full display. Thank you Michael.
No problem, happy to help!
I am taking the bar tuesday and just watching some videos to get my brain moving and ready to go. WISH I HAD FOUND THESE SOONER! Good look!!!
Did you pass the bar?
Awesome work. Thanks for what you do!
What about a letter from seller to buyer offering to sell land (w/definite price terms) and then a good for a price to be determined in the future. Would these be two separate contracts, the former governed by common law and latter by the UCC?
Informative and educational
I've seen passing Bar answers for contracts that fall under the UCC, but they proceed to analyze (IRAC) according to CL - particularly when only one party is a merchant. What to do? Thanks!
Interesting! I would probably need to see the essays to fully understand what is going on. Maybe, there was a friendly bar examiner? Regardless, if the predominate purpose of a contract is for the purchase/sale of goods, I would analyze the contract pursuant to Article 2 of the UCC. This is very well established law.
Just to confirm, is common law the Restatement?
thank you so much!
No problem, happy to help!
Your information is great. I love that you use a white board.
Would the building of something be a service contract or goods? For example I hire someone to build me a boat. Would the primary purpose be the service of building or would be the boat itself as a good?
Generally, hiring a party to design, create, or build a good is considered to be a service contract.
I’d say to distinguish the two, buying of goods would be something already built vs hiring someone with the intention of having them craft the item, of which they would not have crafted, had it not been for your request.
This rocks!
Thank you for the support! 💪
Pick better frames to represent your videos. It will attract more people. Your videos are very helpful. Please continue your work.
Thank you! I'll work on it. 💪
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Can fiat currency be accepted for value under a common law contract seeing as it (fiat currency) has no actual value, it has a notional value
Federlist papers 78 states that the judicial branch must stay independent but the grant and coopertive agreements act codified under 45 cfr coopertive agreements clearly established a contract between the judicial and executive how would one of the people fight this there is the clearfield doctrine what other method could be used
Common law contracts are between real people, living men and women;
UCC contracts are between legal fictions (I.e corporations that only exist on paper),
The former on land jurisdiction.
The latter in sea jurisdiction.
You would not want to mix jurisdictions. Moving goods on land jurisdiction between real living men and women is known as International Trade.
Moving goods in sea jurisdiction between legal fictions is known as Commerce.