Recall that common law governs contracts for services and contracts not governed by the UCC. 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. The UCC seeks to provide uniformity to contracts law among the different states.
What is a major difference between the UCC and common law approach to contract remedies?
The statute of limitations is four years under the UCC and can range from four to six years under common law. Common law contracts can be discharged only if a party has died or the subject matter of the contract is destroyed. The UCC allows contract discharge only because of impracticability.
What is the most common remedy for a breach of contract?
An award of compensatory damages is the most common of the legal remedies for breach of contract. The calculation of compensatory damages is based on the actual losses you have sustained as a result of the breach of contract.
What is excluded from Article 2 of the UCC?
Applies to transactions in goods. Goods are all things which are moveable at the time of identification to the K for sale. Excluded from goods – Insurance polices, tort claims, sale of real property, contract for services, trademarks, patents.
Which statement below is correct when comparing the UCC and common law?
Which is correct when comparing the UCC to common law? Common law is much stricter than the UCC.
Which of the following is a stated purpose of Article 2 of the UCC?
The stated purpose(s) of Article 2 of the UCC is/are: to simplify the law governing sales.
Does UCC or common law apply?
Contracts law principles in general are uniformly understood and applied across the United States. Contract law is governed by the common law and the Uniform Commercial Code “UCC.” UCC governs contractual transactions with goods and tangible objects (such as a purchase of a car).
What are the most frequently awarded legal damages?
Compensatory damages: This is the most common breach of contract remedy. When compensatory damages are awarded, a court orders the person that breached the contract to pay the other person enough money to get what they were promised in the contract elsewhere.
Does UCC Article 2 apply to non merchants?
UCC Article 2 applies to the sale of goods between merchants or between a merchant and a non-merchant. What is this? 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.
Why is this an important concept under UCC Article 2?
Article 2 of the UCC governs contract disputes (for the sale of goods) concerning conflicting terms. This presents a problem when a dispute arises between the seller and buyer. Each believes that its own terms and conditions must apply to the relationship and govern the dispute.
What is the purpose of the UCC?
As the word “Uniform” in its title suggests, a primary purpose of the UCC is to make business activities more predictable and efficient by making business laws highly consistent across all American states.
What is the difference between common law and UCC?
In the terms also, there is difference between Common Law and UCC. In Common Law, the terms include quantity, price, performance time, nature of work and identity of offer. On the other hand, the quantity is the main focus of the term in UCC. When the Statute of Limitation is four to six years in Common Law, it is four years in UCC.
Do minor amendments to a UCC contract make it void?
On the other hand, minor amendments do not make UCC contracts void; only material changes are considered to have an impact. Under common law, a contract can only be modified if there is additional consideration or benefit given for the modification.
What is consideration under the UCC?
Purchase of goods and other tangible objects is governed by the UCC. Regardless of what laws contracts fall under, they share the requirements to have an offer that is accepted by another person or entity in exchange for something of value, called consideration.
What is the Statute of limitation in UCC?
When the Statute of Limitation is four to six years in Common Law, it is four years in UCC. The contract in Common Law is discharged only because of impossibility like insanity/death of parties concerned or destruction of subject matter.
