Legal Terms Chapter 21 - The Uniform Commercial Code and Sales of Goods Contracts Flashcards
Bill of sale
A signed writing evidencing the transfer of personal property from one person to another.
Conforming goods
Goods that are in accordance with the obligations under the contract.
Consequential damages
Damages that flow from the seller’s breach and which the seller had reason to know about and which can’t be prevented by the buyer obtaining cover; a type of remedy.
Contract to sell
A contract under which title to goods is to pass at a future time.
Cover
The right of a buyer, after breach by a seller, to purchase similar goods from someone else.
Cure
To correct.
Destination contract
A contract that requires the seller to deliver goods to a specific destination.
Donee
A person who receives a gift.
Donor
A person who gives a gift; also a person who establishes a trust and also called grantor, trustor, or settlor.
Express warranty
A statement of fact or promise that goods have certain qualities; a promise, description, or sample that is part of the sale.
F.O.B the place of destination
Free on board (no delivery charges) to the place of destination; risk of loss is tendered to the buyer when the goods are tendered to their final destination and the seller assumes risk of loss until arrival.
F.O.B the place of shipment
Free on board (no delivery charges) to the place of shipment; risk of loss is transferred to buyer when goods turned over to the carrier.
Full warranty
An express warranty given for consumer goods under which the seller must repair or replace, without cost to the buyer, defective goods or else refund the purchase price.
Fungible goods
Goods such as grain or oil, of which any unit is the same as any like unit; kept in bulk quantities and usually sold by weight or measure.
Future goods
Goods that are not yet in existence or under anyone’s control.
Goods
Movable, tangible personal property.
Identified goods
Goods that have been selected as the subject matter of a contract.
Implied warranty
A warranty that is imposed by law rather than given voluntarily.
Incidental damages
Reasonable expenses incurred because of the seller’s breach, which can include legal fees; a type of remedy.
Limited warranty
An express warranty given for consumer goods that is less than a full warranty.
Nonconforming goods
Goods that are not the same as those called for under the contract.
Output contract
A contract to sell “all the goods a company manufactures” or “all the crops a farmer grows.”
Puffing
Statements made by sellers that are opinions to put their goods in the best light possible; not warranties.
Remedies
Types of relief or justice that a court can award to a litigant who has established a violation of a legal right committed by the defendant; they may be legal or equitable in nature.
Requirements contract
A contract to buy “all the fuel (or other goods) needed for one year.” Essentially, all the goods that the buyer needs.
Risk of loss
Responsibility in case of damage or destruction.
Sale
The passing of title from the seller to the buyer for a price; title means ownership.
Sale on approval
The sale of goods that are for the buyer’s use rather than for resale, and that may be returned even though they conform to the contract, and where the buyer doesn’t bear the risk of loss or damage until the buyer accepts the goods; a type of conditional sale.
Sale or return
The sale of goods that are primarily for resale and that may be returned even though they conform to the contract, but where the buyer bears the risk or loss or damage to the goods; a type of conditional sale.
Shipment contract
A contract under which the seller turns the goods over to a carrier for delivery to a buyer.
Uniform Commercial Code
A uniform code adopted in every state, that governs various commercial transactions; when adopted by a jurisdiction, the legal rules replace that jurisdiction’s common law doctrines.
Warranty of fitness for a particular purpose
An implied warranty, given when a buyer relies on any seller’s skill and judgment in selecting goods, that the goods will be fit for a particular purpose; the seller is aware of this reliance.
Warranty of merchantability
An implied warranty, given by merchants in all sales unless excluded, that goods are fit for the ordinary purpose for which such goods are used.
Warranty of title
A guarantee that title is good, that the transfer is rightful, and that no unknown liens on the goods exist; a type of implied warranty.
