The Subjective Perspective

• Author: Robert J. Spjut
• Pages: 3-17

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The Subjective Perspective

TRANSACTIONS AND CONTRACTS

Black’s Law Dictionary oers four definitions of transaction:

● an “[a]ct of transacting or an instance of conducting any business

or other dealings; esp[ecially] the formation, performance, or

discharge of a contract”;

● “something performed or carried out; a business agreement or

exchange”;

● “any activity involving two or more persons; [and]

● “[a]n agreement that is intended by the parties to prevent or end a

dispute and in which they make reciprocal concessions.”1

Only the first three definitions are relevant here; the last pertains

to civil law contracts. A contract, by comparison, is narrowly defined

as “[a]n agreement between two or more persons creating obligations

that are enforceable or otherwise recognizable at law.”2 Whereas the

parties’ contract is their legal agreement, their transaction includes

1 B’ L D 1726 (10th ed. 2014).

2 Id. at 388.

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