UCC Article - 2
BUSN-420
The Uniform Commercial Code (UCC) is the primary source of commercial contract law in the United States. It covers contracts for the sale of goods, bank deposits and collections, letters of credit, bulk transfers, warehouse receipts, bills of lading, and secured transactions. UCC’s objective is to simplify, clarify, and modernize the law governing commercial transactions by making it uniform throughout the various jurisdictions. UCC is state law and is subject to the views and customs of each state's legislature. (Rindner, 1998). Contractual disputes involving the UCC are interpreted by state courts. Consequently, there are differences in the code from state to state. In short, the UCC is not uniform.
Article 2 of Uniform Commercial Code addresses such issues as contract formation, performance of contractual obligations, repudiation of contract, contract termination, remedies for non performance, implicit and explicit warranties, waiver or disclaimer of such warranties, and risk of loss. Article 2 states that to contract for the sale of goods with a price of $500 or more to be enforceable, it must be in writing sufficient to indicate that a contract for sale has been made between the parties, and signed by the party against whom enforcement is sought or by his authorized agent or broker. Article 2 contains three requirements of the written contract.
It must provide evidence that there was a contract for the sale of goods,
It must be signed by the party to be charged, and
It must specify a quantity.
This implies that the price, time, and place of payment or delivery, the general quality of the goods, or any particular warranties may be omitted, and if the above three requirements are included, the contract is enforceable. If not in writing, a contract can also be validated if there is “partial performance” as evidenced that goods have been accepted and payment has been made and accepted....