Chapter 17 Vocabulary Flashcards
A contract for the sale of goods.
Sales Contract
The passing of title to property from the seller to the buyer for a price.
Sale
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. Such property is not governed by Article 2 of the UCC.
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
Under the UCC, a person who deals in goods of the kind involved in the sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold.
Merchant
Under Article 2A of the UCC, 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 (the lessor) agrees to transfer the right to the possession and use of property to another person (the lessee) in exchange for rental payments.
Lease Agreement
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
An agreement in which a buyer agrees to purchase and the seller agrees to sell all or up to a stated amount of what the buyer needs or requires.
Requirements Contract
An agreement in which a seller agrees to sell and a buyer agrees to buy all or up to a stated amount of what the seller produces.
Output Contract
An offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period of time or, if no definite period is stated, for a reasonable time (neither period to exceed three months).
Firm Offer
Within a specified time period or, if no period os specified, within a reasonable time.
Seasonably
Prior conduct between the parties to a contract that establishes a common basis for their understanding.
Course of Dealing
Any practice or method of dealing that is so regularly observed in a place, vocation, or trade that parties justifiably expect it will be observed in their transaction.
Usage of Trade
The conduct that occurs under the terms of a particular agreement, which indicates what the parties to that agreement intended the agreement to mean.
Course of Performance
In the sale of goods, the express designation of the goods provided for in the contract.
Identification
Goods that are alike by physical nature, agreement, or trade usage.
Fungible Goods
A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier. The seller assumes liability for any losses or damage to the goods until they are delivered to the carrier.
Shipment Contract
A contract for the sale of goods in which the seller is required or authorized to ship the goods by carrier and tender delivery of the goods at a particular destination specified in the contract.
Destination Contract
A paper exchanged in the regular course of business that evidences the right to possession of goods (for example a bill of lading or a warehouse receipt).
Document of Title
A condition in which a person cannot pay his or her debts as they become due or ceases to pay debts in the ordinary course of business.
Insolvent
A purchaser who buys without notice of any circumstance that would cause a person of ordinary prudence to inquire as to whether the seller has valid title to the goods being sold.
Good Faith Purchaser
The rule that entrusting goods to a merchant who deals in goods of that kind gives that merchant the power to transfer those goods and all rights to them to a buyer in the ordinary course of business.
Entrustment Rule
A buyer who, in good faith and without knowledge that the sale violates the ownership rights or security interest of a third party in the goods, purchases goods in the ordinary course of business from a person in the business of selling goods of that kind.
Buyer in the Ordinary Course of Business
A situation in which the person property of one person (a bailor) is entrusted to another (a bailee), who is obligated to return the bailed property to the bailor or dispose of it as directed.
Bailment
The right of a party who tenders nonconforming performance to correct his or her performance within the contract period.
Cure
A property interest in goods being sold or leased that is sufficiently substantial to permit a party to insure against damage to the goods.
Insurable Interest
