UCC Rules Continued

Question 1

When does the Parol Evidence Rule bar evidence of prior agreements?

Answer 1

The rule bars evidence of prior or contemporaneous agreements that contradict the terms of a fully integrated written contract.

Question 2

What types of evidence may supplement a written contract under Article 2?

Answer 2

Evidence of course of performance, course of dealing, usage of trade, or consistent additional terms may supplement a partially integrated contract.

Question 3

What are a seller’s obligations in a shipment contract?

Answer 3

In a shipment contract, the seller must deliver the goods to a carrier, arrange for shipment, notify the buyer, and provide necessary documents.

Question 4

What are the buyer’s rights regarding inspection?

Answer 4

The buyer has the right to inspect goods before payment unless the contract provides otherwise, such as with COD terms.

Question 5

When does risk of loss pass in a shipment contract?

Answer 5

Risk of loss passes to the buyer when the seller delivers the goods to the carrier, provided the seller fulfills all shipment obligations.

Question 6

When does a buyer obtain an insurable interest in goods?

Answer 6

A buyer obtains an insurable interest when the goods are identified to the contract.