Chapter 20: Sales and lease Contracts

Talk Inc. offers to buy from Ultra Corporation 1,000 phones with certain features. Without notifying Talk, Ultra timely ships phones with fewer features. With respect to the offer, this shipment is an acceptance and

a breach.

Marine Expeditions Inc. pays Noah's Boats $4,000 to use an oceangoing vessel for a month. For the purposes of the UCC, this is

a lease.

Aaron offers to sell Babe a collection of movie memorabilia. For the transaction to be a sale under the UCC, title to the collection must be passed from the seller to the buyer for

a price.

Power Company offers to buy from Quality Transformers LLC a specific quantity of a certain type of transformer for a stated price. Quality can accept the offer by

a promise to ship the goods.

Auto Body Company orders custom paint from Best Hues Inc., but Best does not deliver. Auto Body will probably be unable to enforce the agreement if the parties omitted

a quantity term.

Embers Corporation orders twelve fire extinguishers from Firefighting Inc., which delivers the equipment. This is most likely

a sale of goods.

Mining Corporation purchases the business assets of Open Pit Inc., including its equipment and supplies, for an agreed-to price, payable in installments. Under the UCC, this transaction is

a sale.

Excluded from Article 2 of the UCC are

corporate stocks and bonds. patents and copyrights. ordinary contract rights.

Refined Metals Company and Superior Fabrication Inc. enter into a contract under which Refined agrees to deliver a certain quantity of sheet metal to Superior each month. The contract does not include a price term. In a suit between the parties over the price, a court will

determine a reasonable price.

Bon, an agent for City Motors Inc., e-mails Dale on May 1 that the dealer will sell to her a 2018 Ford pick-up truck for $25,000 between May 1 and July 1. Bon's offer to Dale is

irrevocable for the stated period.

Mara and Nim enter into a contract for a sale of orchids that requires payment within thirty days of delivery. Under the UCC, the payment term in the contract

is fully enforceable.

Grass Farm LLC offers to sell fifty bales of hay at a certain price to Horse Stable Inc. The owner of the stable responds, "We agree if you agree to make it sixty bales for the price." Their contract is formed according to

none of the terms.

Speedy Trucking Inc. and Trailer Rents LLC are parties to an oral agreement for a one-year lease of six doublewides with payments totaling more than $40,000. They may satisfy the Statute of Frauds by

setting out the terms in a memo.

Elle sells a motorcycle to Fran for $5,000, a bike to Gwen for $600, a pool table to Holly for $200, and three shares of stock to Inez for $100. Article 2 of the UCC does not apply to the sale of

the stock.

Joel sells a violin to Key for $5,000, a cello to Leia for $400, and five music stands to Mica for $50. A writing is required to enforce the sale of

the violin only.

Grinders Mill agrees to sell to Harvest Company a certain quantity of refined grains. Some of the other terms in the deal are left open. In the case of a dispute, a court will presume

whatever is reasonable.

Curt enters into a contract with Drivers Lease Company for a three-year lease of a car. This contract is subject to

Article 2A of the UCC.

Ferris is refinishing his kitchen floor and needs a floor sander to complete the job. Ferris's neighbor Gina suggests that he call Home Repair Rentals, Inc. Home Repair leases Ferris a floor sander. In this transaction, the lessor is

Home Repair.

Rice Farm offers to sell Sushi Restaurants Inc. five hundred bushels of rice. Sushi responds, "We agree to buy five hundred bushels only if the rice is Grade-A quality." Without more, their contract is formed according to

the new terms of the acceptance.

Jo owns a condominium that she leases to Kia. Jo gives her daughter Liu $450 on her sixteenth birthday. Jo sells her car to her neighbor Maia for $1,500. Article 2 of the UCC covers

the sale to Maia.