11: Sales Contracts
- Page ID
- 41871
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\(\newcommand{\avec}{\mathbf a}\) \(\newcommand{\bvec}{\mathbf b}\) \(\newcommand{\cvec}{\mathbf c}\) \(\newcommand{\dvec}{\mathbf d}\) \(\newcommand{\dtil}{\widetilde{\mathbf d}}\) \(\newcommand{\evec}{\mathbf e}\) \(\newcommand{\fvec}{\mathbf f}\) \(\newcommand{\nvec}{\mathbf n}\) \(\newcommand{\pvec}{\mathbf p}\) \(\newcommand{\qvec}{\mathbf q}\) \(\newcommand{\svec}{\mathbf s}\) \(\newcommand{\tvec}{\mathbf t}\) \(\newcommand{\uvec}{\mathbf u}\) \(\newcommand{\vvec}{\mathbf v}\) \(\newcommand{\wvec}{\mathbf w}\) \(\newcommand{\xvec}{\mathbf x}\) \(\newcommand{\yvec}{\mathbf y}\) \(\newcommand{\zvec}{\mathbf z}\) \(\newcommand{\rvec}{\mathbf r}\) \(\newcommand{\mvec}{\mathbf m}\) \(\newcommand{\zerovec}{\mathbf 0}\) \(\newcommand{\onevec}{\mathbf 1}\) \(\newcommand{\real}{\mathbb R}\) \(\newcommand{\twovec}[2]{\left[\begin{array}{r}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\ctwovec}[2]{\left[\begin{array}{c}#1 \\ #2 \end{array}\right]}\) \(\newcommand{\threevec}[3]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\cthreevec}[3]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \end{array}\right]}\) \(\newcommand{\fourvec}[4]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\cfourvec}[4]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \end{array}\right]}\) \(\newcommand{\fivevec}[5]{\left[\begin{array}{r}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\cfivevec}[5]{\left[\begin{array}{c}#1 \\ #2 \\ #3 \\ #4 \\ #5 \\ \end{array}\right]}\) \(\newcommand{\mattwo}[4]{\left[\begin{array}{rr}#1 \amp #2 \\ #3 \amp #4 \\ \end{array}\right]}\) \(\newcommand{\laspan}[1]{\text{Span}\{#1\}}\) \(\newcommand{\bcal}{\cal B}\) \(\newcommand{\ccal}{\cal C}\) \(\newcommand{\scal}{\cal S}\) \(\newcommand{\wcal}{\cal W}\) \(\newcommand{\ecal}{\cal E}\) \(\newcommand{\coords}[2]{\left\{#1\right\}_{#2}}\) \(\newcommand{\gray}[1]{\color{gray}{#1}}\) \(\newcommand{\lgray}[1]{\color{lightgray}{#1}}\) \(\newcommand{\rank}{\operatorname{rank}}\) \(\newcommand{\row}{\text{Row}}\) \(\newcommand{\col}{\text{Col}}\) \(\renewcommand{\row}{\text{Row}}\) \(\newcommand{\nul}{\text{Nul}}\) \(\newcommand{\var}{\text{Var}}\) \(\newcommand{\corr}{\text{corr}}\) \(\newcommand{\len}[1]{\left|#1\right|}\) \(\newcommand{\bbar}{\overline{\bvec}}\) \(\newcommand{\bhat}{\widehat{\bvec}}\) \(\newcommand{\bperp}{\bvec^\perp}\) \(\newcommand{\xhat}{\widehat{\xvec}}\) \(\newcommand{\vhat}{\widehat{\vvec}}\) \(\newcommand{\uhat}{\widehat{\uvec}}\) \(\newcommand{\what}{\widehat{\wvec}}\) \(\newcommand{\Sighat}{\widehat{\Sigma}}\) \(\newcommand{\lt}{<}\) \(\newcommand{\gt}{>}\) \(\newcommand{\amp}{&}\) \(\definecolor{fillinmathshade}{gray}{0.9}\)- Explore the differences between the Uniform Commercial Code and common law contract principles.
- Understand important provisions of the Uniform Commercial Code and how they apply to merchants who sell goods.
- Learn when the Uniform Commercial Code applies to mixed contracts.
- 11.1: Introduction
- This page discusses how federalism leads to varying state laws that can impede economic growth, prompting business leaders to advocate for uniformity through the Uniform Commercial Code (UCC) established in 1952. The UCC, adopted by all states, serves as the only national law not passed by Congress. Additionally, the page provides writing advice focused on the importance of editing, honesty, and clarity for effective communication.
- 11.2: Scope of the UCC
- This page explains the UCC's role in simplifying commercial transactions by providing default legal terms, thus enhancing certainty and efficiency for businesses. It addresses issues related to contract formation, modifications, and additional terms, aiming to reduce litigation. The UCC primarily governs the sale of goods and applies stricter standards for merchants, ultimately promoting improved business practices and relationships.
- 11.3: Sales Contract Formation
- This page discusses the formation of contracts under common law and the UCC. While common law emphasizes matching offer and acceptance terms, UCC §2-204 allows for diverse contract formation in sales, relying on express agreements, dealing, trade usage, and UCC rules. In conflicts, a hierarchy prioritizes express terms. UCC §2-207 permits acceptance with differing terms, creating a contract typically unless stated otherwise, with differing terms canceled and replaced by UCC provisions.
- 11.4: Performance
- This page outlines the obligations of sellers to deliver conforming goods as per the buyer's order, the buyer’s right to inspect for non-conformity, and the seller’s right to remedy breaches. It highlights potential actions for both sellers and buyers in case of contract breaches, such as the buyer seeking cover and the seller withholding delivery. Finally, if non-conforming goods are accepted, the seller can pursue legal action for payment.
- 11.5: Warranties
- This page explains warranties, which are promises regarding the quality of goods, categorized into express and implied warranties. An express warranty arises from the seller's statements, while implied warranties, defined by the UCC, include merchantability and fitness for purpose. Merchants can disclaim these warranties by mentioning "merchantability," and such warranties do not apply if goods are misused.
- 11.6: Concluding Thoughts
- This page discusses the UCC, a national law aimed at standardizing sales of goods across states, addressing contract gaps and warranties. While it also includes secured transactions and negotiable instruments, the primary focus is on its importance for individuals and businesses in commercial transactions, providing consistency and predictability.