Sales & UCC Basics
What is a sale under the UCC?
A transfer of ownership of goods for money or value.
What is a merchant?
A person who regularly deals in goods of that kind.
What is the purpose of the Statute of Frauds?
To prevent fraud in important contracts.
What happens if goods are received and accepted?
Oral contract becomes enforceable.
A transaction where something is exchanged for money.
What law governs sales of goods?
The Uniform Commercial Code (UCC).
What is a casual seller?
Someone who sells goods only occasionally.
What must the writing include?
Quantity of goods.
What if seller accepts payment?
The contract is enforceable for that amount.
Define: Ownership
The legal right to possess or control property.
What is a contract to sell?
An agreement to transfer goods in the future.
What happens when merchants add new terms?
It becomes part of the contract unless objected to.
Can price be missing from the writing?
Yes, price is not required.
What are specially made goods?
Custom goods not suitable for resale.
Define: Barter
Trading goods or services without using money.
What does the UCC primarily regulate?
Commercial transactions involving goods.
When does a new term NOT become part of the contract?
If it materially alters the agreement or is objected to.
Who must sign the contract?
The party being sued.
What happens if a party admits in court there was a contract?
The contract becomes enforceable.
Define: Bill of Sale
A written document proving a sale happened.
What is required for a valid sales contract?
Offer, acceptance, consideration, and legal subject matter.
What is the 10-day rule between merchants?
A merchant must object within 10 days to avoid being bound.
What is the $500 rule?
Sales contracts $500 or more must be in writing.
When is partial payment enough for enforceability?
When goods are divisible or indivisible depending on the situation.
Define: Contract to Sell
An agreement promising to transfer goods once conditions are met.