CONTRACTS 07 Flashcards
Uniform Commercial Code (UCC)
A model act that includes comprehensive laws that cover most aspects of commercial transactions. All the states have enacted all or part of the UCC as statutes.
Article 2 (Sales)
An article of the UCC that governs sale of goods.
Sale
The passing of title of goods from a seller to a buyer for a price.
Goods
Tangible things that are movable at the time of their identification to a contract.
Mixed Sale
A sale that involves the provision of a service and a good in the same transactions.
Merchant
A person who 1. deals in the goods of the kind involved in a transaction or 2. by her occupation holds herself out as having knowledge or skill peculiar to the goods involved in the transaction.
Article 2A (Leases)
An article of the UCC that governs leases of goods.
Lease
A transfer of the right to the possession and use of named goods for a set term in return for certain consideration.
Lessor
A person who transfers the right of possession and use of goods under a lease.
Lessee
A person who acquires the right to possession and use of goods under a lease.
Finance Lease
A three-party transaction consisting of a lessor, a lessee and a supplier.
Gap-filling Rule
A rule that says an open term can be “read into” a contract.
Accommodation
A shipment that is offered to a buyer as a replacement for the original shipment when the original shipment when the original shipment cannot be filled.
UCC Statute of Frauds
A rule that requires all contract for the sale of goods costing $500 or more and lease contracts involving payments of $1000 or more to be in writing.
Parol Evidence Rule
A rule which says that if a written contract is a complete and final statement of the parties’ agreement, any prior or contemporaneous oral or written statements that alter, contradict or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract.
