Article 2 of the UCC governs the sale of goods, which is defined by §2-105 and includes things that are moveable, but not money or securities. It does not include land or houses. Contracts between merchants are also governed by article 2 of the UCC.
What does Article 2 of the UCC cover?
Article 2 is a vast segment of the UCC that specifically addresses contracts for the sale of goods. A good is any movable property identified at the time of the contract. ‘Goods’ are also sometimes known as ‘chattels. ‘
Is a promissory note an instrument under the UCC?
The UCC defines two types of negotiable instruments: drafts and notes. A common example of a note is a promissory note associated with a loan. The borrower has promised to pay the amount of the note to a person presenting the note for payment (who is often known as the “holder”).
What additional remedy does the UCC Article 2 expressly provide to a buyer in the event that the seller fails to timely deliver goods?
Section 2-715 of the UCC allows incidental damages, which are “damages resulting from the seller’s breach including expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected, any commercially reasonable charges, expenses or commissions in connection with …
What does UCC 2 apply to?
UCC Article 2 applies to the sale of goods between merchants or between a merchant and a non-merchant. As such, merchants are required to follow certain standards of conduct when engaging in a business or commercial contract. Transactions between non-merchants are not covered by Article 2 UCC.
What is a UCC 2?
Description Ucc Filing California This Uniform Commercial Code form, a UCC-2 Change Form, is for use in the documentation of personal property as collateral for a loan, and related matters.
What are UCC remedies?
The UCC permits the seller to also take other steps with respect to the goods directly affected or if the whole contract was breached, with respect to the whole undelivered balance of the contract. These remedies include withholding or stopping the delivery of the goods, reselling the goods and canceling the contract.
Can a buyer resell goods?
(3) On rightful rejection or justifiable revocation of acceptance a buyer has a security interest in goods in his possession or control for any payments made on their price and any expenses reasonably incurred in their inspection, receipt, transportation, care and custody and may hold such goods and resell them in like …
Does UCC Article 2 apply to consumer transactions?
2 Sales: UCC Article 2 applies to transactions of goods; it does not apply to any transaction which although in the form of an unconditional contract to sell or present sale is intended to operate only as a security transaction nor does this Article impair or repeal any statute regulating sales to consumers, farmers or …
Does UCC Article 2 apply to services?
If it is for services, then UCC Article 2 does not apply; if it is for goods, then UCC Article 2 does apply. The challenge is that many construction agreements involve providing services and selling goods. If the agreement is a “services” contract, then other state laws will apply and not UCC Article 2.
What is a UCC 2-615 excuse by failure of presupposed conditions?
(UCC 2-615) Excuse by failure of presupposed conditions. Except so far as a seller may have assumed a greater obligation and subject to section 1302.72 of the Revised Code on substituted performance:
Can a supplier make partial delivery under the UCC?
supplier can show that delivery of all goods required under a contract is commercially impracticable but the supplier can make partial delivery, UCC 2-615 mandates that such deliveries be allo-cated among customers in a manner that is “fair and reasonable.”
Is a promissory note enforceable against the person obligated?
(1) is not enforceable against the person obligated on the promissory note or the account debtor; (2) does not impose a duty or obligation on the person obligated on the promissory note or the account debtor;
