Chapter 19
Model for Transactions
Introduction
Description of the Model
Uses of the Model
Introduction
The model for using law encompasses both litigation and transactions. This
chapter separates out and describes the model for transactions. Then it
describes uses of the model.
Description of the Model
Litigation deals
with past facts that have to be proved. Transactions, by
contrast, generally deal with facts that are not yet in existence when the matter
starts. These facts are created by the parties following processes.
Consequently, the model for transactions shows the combined action of law,
facts and processes.
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The elements of the law lay down the facts to be
established. A party establishes or creates these facts by following processes,
which are usually obvious and logical. Since these facts satisfy the elements of
the law, the consequences prescribed by law for the particular transaction then
follow. All of this is shown by the model for transactions, which is set out in
the following table:
Law
Facts
Processes
Element 1
Fact 1
Process 1
Element 2
Fact 2
Process 2
Element n
Fact n
Process n
Consequences
Consequence 1
Consequence 2
Consequence n
Figure 19.1 Model for Transactions
This diagram shows how a transaction works. In so doing it shows what
parties must do to perform the transaction and the relationship of law, facts
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It is possible to have a matter that is a hybrid in that some facts are created
by processes while some are proved by evidence. In this case the model for
transactions is modified by substituting “Evidence” for “Processes” in the final
column.
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