chapter 18

UCC Statute of frauds

- all contracts for the sale of goods costing $500 or more must be in writing - all lease contracts involving payments of $1000 or more must be in writing

not goods

-money and intangible items like stocks, bonds and patents - real estate is not tangible good because it is not moveable. minerals and crops are goods

mixed sale

the determination of whether or not article 2 of the UCC applies is whether the predominate party of the transaction is related to the sale of goods or provisions of services.

uniform comercial code

a model act that was drafted by the america law institute to address the issue facing business people conducting interstate business in attempting to comply with varying laws of the individual states. the uniform commercial code provides uniform rules that govern commercial transactions. every state except Louisiana has adopted some version of article 2 of the UCC

personal property

article 2 applies to the lease of personal property. a lease is a transfer or rights to the possession and use of named goods for a set term in return for consideration usually money or rent payments. according to article 2 of the UCC it would also apply to the lease of a car or purchase of a vehicle

Sales

article 2 of the UCC applies to transactions involving goods. goods are defined as tangible things that are movable at the time of their identification to a contract.

formation of sales and lease contracts: offer

as with general contracts the formation of sales and lease contracts require and offer an acceptance. the ucc provides for much different rules than under the common law. the ucc allows for open terms such as an open price term open payment term open delivery term open time term. an offer may be deemed definitive enough for acceptance despite mission open terms because the ucc provides default provisions for missing terms

services

contracts for the provision of services, including legal services medical services etc are not covered by article 2 of the UCC. sometimes s ale involves both the provision of a service and a sale of a good in the same transaction.