Government and UCC Contracts Revision Article Review

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The ability to end or terminate the contract is unilateral. Gabbard expresses the fact that changes must also be unilateral. The terms in settling a dispute must be predetermined before entering contract. The Government contract gives the authoritative party the right to audit the books of the company selling the product or service. In this court case, the government was allowed to appeal the case won by Agredano resulting in a reversal of the former court ruling.

Government Contract Comparison to Uniform Commercial Code/Contract

The U.C.C. Or commercial contract is less formal and authority to enter a contract is assumed by the parties involved (Gabbard, 2011). In a UCC the terms are not detailed or written out in a formal document as required by a government contract. In fact the details are implied (Gabbard, 2011).

Analyzing and Evaluation Example: Carpet Cleaning Contract

For example in a UCC contract with a carpet cleaner, it was assumed they would move the furniture and replace it after the carpet was cleaned. Though this was not formally discussed, it is implied or assumed. The terms can be deemed valid even though either party has not formally stated or documented the contract is in effect. For instance when asking for the carpet to be cleaned, we asked the serviceperson to come to our home and complete the service within a couple of hours. Even though this information was not documented by either the carpet cleaner or myself, it is expected that the job will not take more than a couple hours. This is an informal expectation.

UCC Contract Requirements

In a UCC contract one Bargaining Position is that of Good faith, which is assumed on the parts of both parties to complete their part of the contract (Gabbard, 2011).

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Even though no money is paid, the carpet serviceman cleaned our carpets and expected to be paid when the work was done. Even though no money had yet exchanged hands. As the person receiving the service, it is expected that the job will be satisfactory even before the work is done. Warranties are implied. In the case of the carpet cleaning service. The carpet was expected to look better after being cleaned than before. If we noticed anything contrary to a good service job within the first 24 hours to several days, it was assumed that the carpet cleaning service would fix the problem as a warranty repair at no additional costs. If there is any additional repairs as a result of a faulty job, it is assumed that these excess costs or damages will be covered by the carpet company. If the contract needs to be terminated under UCC, this can be done by either party

There are implied expectations of service that will determine if the job was acceptable after inspection or rejected. If something came up to change the plans for getting the carpet cleaned on a specific day after the job was started, it is possible that a fee would still need to be paid to the company. Even if the company didn't finish the job simply because there are not unilateral termination rights or change clauses.

By comparison, if there is a disagreement with UCC parties, there are alternatives that can be agreed by either party and discussion to explore the alternatives is possible. Authority belongs with both parties. It cannot clearly be delineated as to who has more authority. Neither party is allowed to audit the accounting financials or other private database of information......

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