Chapter 12 Sales Contracts Flashcards
Ownership
Entails a collection of rights that the buyer is allowed the use and enjoyment of the property
Sale
A contract in which ownership of goods transfer from the seller to the buyer for a price
Contract to Sell
Transfer of ownership takes place in the future
Price
Consideration for a sale or contract to sell goods
Barter
Exchanging goods for goods
Goods
Tangible (touchable), moveable, personal property
UCC Definition: Goods to not include
Money
Intangible personal property
Patents & copyrights
Land & other forms of real property
Vendor
The seller or company in both sales of goods and contracts to sell
Vendee
The buyer or the purchaser
Payment
Occurs when the buyer transfer the agreed upon payment (consideration) and the seller accepts it
Delivery
The act by which the subject matter of the contract is placed within the possession or control of the buyer
Receipt of Goods
Buyer takes physical possessions or control of goods
Statue of Fraud
Bill is not absolute proof of ownership because the person may have acquired claims against the goods since the bill of sale was issued
Bill of Sale
A receipt that is written evidence of the transfers of ownership of goods
Use of Credit
Buyer may get both title and possession before payment when a credit card or installment plan purchase is made
Unconscionable
Grossly unfair terms may not be criminal nor violate a statue, but are unethical
Merchant
Someone who deals regularly in the exchange of goods or claims special knowledge in the sales transaction being conducted
Casual Seller
Do not qualify as a merchant
Acceptance of Goods
Acceptance is shown when goods are used, resold, or treated as if they were owned by the buyer
Contract of Adhesion
Contract where the more powerful party dictates all the important terms.
Material
Included in the contract only if the original offeror expressly shows an intention to be bound by it
Sales Contract
Are generally valid and enforced in court whether they are oral, written, or implied from the conduct of parties
Statue of Fraud
The law required a signature of the person being sued, all sales over $500 be in written to be enforced, between merchants the signature of the party who is suing maybe enough to prove an otherwise enforceable sales in contract, oral contracts for the sale of goods priced at $500 or more maybe valid and enforceable
