Sales Contract Vs Uniform Commercial Code (UCC)
Sales contracts are formed in a very similar manner and with similar context as common law contracts. There are some differences however, and the Uniform Commercial Code (UCC) Article 2 covers these in great detail. The UCC was established in 1952, to “facilitate commerce among the states, by providing a uniform, but flexible set of rules governing commercial transactions” (Miller, 2014).
One of the differences is in the contract’s offer, and when the contract becomes binding. Generally, a contract officially obligates both parties, once the offer has been accepted. In sales however, a contract can exist, even if the exact point in which the offer was accepted is undefined. Terms in a sales contract can differ as well from common law contracts. Pricing in sales may not be an exact, agreed upon price, but rather a range. In his video, Newman (2016) explains that both parties may agree upon the unknown …show more content…
It would behoove merchants and non-merchants alike conducting sales transactions across state lines, to learn the differences. The UCC does not however apply to international transactions, and anyone venturing should become familiar with the Contracts for the International Sale of Goods, or CISG.
In conclusion, sales contracts are similar to common law contracts, but may also have distinct differences in terms of offer, acceptance, and consideration. The UCC was established to ease commerce amongst the states and has been adopted by all, at least in-part. The code protects buyers and sellers in Article 2, Sales, and provides laws to be followed in the absence of specific terms set forth in a sales contract. Merchants and non-merchants conducting sales transactions, and having knowledge of the UCC, place themselves at less risk, and in a better position to avoid
One of the differences is in the contract’s offer, and when the contract becomes binding. Generally, a contract officially obligates both parties, once the offer has been accepted. In sales however, a contract can exist, even if the exact point in which the offer was accepted is undefined. Terms in a sales contract can differ as well from common law contracts. Pricing in sales may not be an exact, agreed upon price, but rather a range. In his video, Newman (2016) explains that both parties may agree upon the unknown …show more content…
It would behoove merchants and non-merchants alike conducting sales transactions across state lines, to learn the differences. The UCC does not however apply to international transactions, and anyone venturing should become familiar with the Contracts for the International Sale of Goods, or CISG.
In conclusion, sales contracts are similar to common law contracts, but may also have distinct differences in terms of offer, acceptance, and consideration. The UCC was established to ease commerce amongst the states and has been adopted by all, at least in-part. The code protects buyers and sellers in Article 2, Sales, and provides laws to be followed in the absence of specific terms set forth in a sales contract. Merchants and non-merchants conducting sales transactions, and having knowledge of the UCC, place themselves at less risk, and in a better position to avoid