Business Law II - Formation of Sales and Lease Contracts - L1- Professor Sharma

Business Law II
Professor Sharma
Lecture #1, Chapter 18
Chapter 18: Formation of Sales and Lease Contracts
Date: January 31, 2015
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Time Stamps:
2:26 Uniform Commercial Code (UCC)
3:02 Article 2 (Sales)
11:36 Case 18.1: Good or Service
21:45 Article 2A (Leases)
26:16 Exhibit 18.3: Finance Lease
29:11 Formation of Sales and Lease Contracts: Offer
41:41 Formation of Sales and Lease Contracts: Acceptance
51:18 UCC Statute of Frauds
Summary of Lecture:
The Uniform Commercial Code is a model act that includes comprehensive laws that cover most aspects of commercial transactions. Article 2 (Sales) governs the sale of goods. Sale is the passing of title from a seller to a buyer for a price, and goods are tangible things that are movable at the time of their identification to a contract. Money and tangible items are not considered tangible goods. Mixed sale is a sale that involves the provision of a service and a good in the same transaction. A merchant is one who deals in the goods of the kind involved in the transaction, or by his or her occupation holds himself or herself out as having knowledge or skill peculiar to the goods involved in the transaction.
Article 2A (Leases) governs leases of goods. A lease is a transfer of right to possession and use of named goods for a set term, in return for certain consideration. A lessor is a person who transfers right of possession and use of goods. A lessee is a person who acquires right to possession and use of goods. The gap-filling-rule is a rule that says an open term can be "read into" a contract. A contract does not fail because of indefiniteness if the parties intended to make a contract and there is a reasonably certain basis for giving an appropriate remedy. The open terms under the formation of sales and lease contracts includes price, payment, delivery, time, and assortment. Consideration is required for the formation of sales and lease contracts. Under the UCC, modifications to sales and lease contracts require no consideration which is different from common law rule.
The UCC permits acceptance by any reasonable manner or method of communication. In certain circumstances, the UCC permits an acceptance of a sales contract to contain additional terms and still to act as an acceptance. Accommodation shipment is shipment that is offered to the buyer as substitution for the originally ordered goods when they are not available. The accommodation is a counteroffer from the seller to the buyer. The buyer is free either to accept or to reject the counteroffer. Under the UCC Statute of Frauds, the following must be in writing: all contracts for the sale of goods costing $500 or more, all lease contracts involving payments of $1,000 or more, and the exceptions are specially manufactured goods, admissions in pleadings or court, and part acceptance.
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Thank you for sharing! I'm currently taking an online course, and my professor does not provide any additional materials other than an outline that remains in legalese. This makes much more sense! Wish I had this class!