Chapter Eleven Flashcards
Sales contract
a contract for the sale of goods under which the ownership of goods is transferred from a seller to a buyer for a price
sale
the passing of title to property from the seller to the buyer for a price
tangible property
property that has physical existence and can be distinguished by the sense of touch and sight
intangible property
property that cannot be seen or touched but exists only conceptually, such as corporate stocks and bonds. Article 2 of the UCC does not govern intangible property
predominate factor test
a test courts use to determine whether a contract is primarily for the sale of goods or for the sale of services
merchant
a person who is engaged in the purchase and sale of goods. under the UCC, a person who deals in goods of the kind involved in sales contract or who holds herself or himself out as having skill or knowledge peculiar to the practices or goods being purchased or sold
lease
under article 2a of the UCC, a transfer of goods, 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
in regard to the lease of goods, an agreement in which one person (the lessor) agrees to transfer the right to the possession and use of property to another person the (the lessee) in exchange for rental payments
lessor
a person who transfers the right to the possession and use of goods to another in exchange for rental payments
lessee
a person who acquires the right to the possession and use of another’s goods in exchange for rental payments
firm offer
an offer (by a merchant) that is irrevocable without the necessity of consideration for a stated period time or, if no definite peroid is stated, for a reasonable time (neither period to exceed three months). A firm offer by a merchant must be in writing and must be signed by the offeror.
seasonably
within a specified time period or, if no period is specified, with in a reasonable time
conforming goods
goods that conform to contract specifications
tender of delivery
under the UCC, a seller’s or lessor’s act of placing conforming goods at the disposal of the buyer or lessee and giving the buyer or lessee whatever notification is reasonably necessary to enable the buyer or lessee to take delivery
perfect tender rule
a rule under which a seller or lessor is required to deliver goods that conform perfectly to the requirements of the contract. A tender of nonconforming goods automatically constitutes a breach of contract
cure
the rights of a party who tenders nonconforming performance to correct that performance within the contract peroid