Chapter 15: The Formation of Sales and Lease Contracts Flashcards
What contracts does the UCC cover?
Sales and Lease contracts
The UCC attempts to provide a ____________________________ of rules to deal with all phases ordinarily arising in a commercial sales or lease transaction
Consistent, integrated framework
A contract for the sale of goods
Sales contract
Article 2 of the UCC
Sales
Article 3 of UCC
Negotiable Instruments
Article 4 of UCC
Bank Deposits-Collections
Article 9 of UCC
Secured Transactions
Article 2A of UCC
Lease Contracts
The passing of a title to property from the seller to the buyer for a price
Sale
The item of property must be
Tangible and moveable
Property that has physical existence and can be distinguished by the senses of touch and sight
Tangible Property
Property that cannot be seen or touched but exists only conceptually, such as corporate stocks (not covered by article 2)
Intangible Property
A test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services
Predominant Factor Test
If a contract is primarily for goods,
UCC applies to all disputes
Goods associated with real estate can fall under the UCC. How?
If they can be severed by the seller
A merchant is a person who
Deals in goods of the kind involved in the sales contract
By occupation, holds him/herself out as having special knowledge and skill related to the practices or goods involved in the transaction
Employs a merchant as a broker, agent, or other intermediary
A transfer of the right to possess and use goods for a period of time in exchange for payment
Lease
An agreement in which one person agrees to transfer the right to the possession and use of property to another person in exchange for rental payments
Lease Agreements
A person who transfers the right to the possession and use of goods to another in exchange for rental payments
Lessor
A person who acquires the right to the possession and use of another’s goods in exchange for rental payments
Lessee
What are the 3 elements to consumer Leases?
A lessor who regularly engages in the business of leasing or selling
A lessee who leases the goods primarily for a personal, family, or household purposes
Total lease payments that are less than $25,000
UCC comes into play only when the parties have failed to provide for
Contingency that later gives rise to a dispute
The moment a definite offer is met by an unqualified acceptance, what is formed?
A Binding Contract
The UCC states that a sales or lease contract will not fail for indefiniteness even if one or more terms are left open as long as
Parties intended to make a contract
Reasonably certain basis of the court to grant an appropriate remedy