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Contracts • Applicable Law
K#006
Legal Definition
Article 2 of the UCC applies to contracts for the sale of goods. Goods are all things movable when they are identified as the goods to be sold under the contract. Parts of the UCC specifically apply to merchants, who are those who regularly deal in goods of the kind sold.
Plain English Explanation
When dealing with contracts, there are generally two sets of laws that can be applied. The first is common law, and the second is UCC law. If you're selling something tangible, and it is moveable (i.e., not real estate), then UCC laws apply. More importantly, if someone regularly sells a good, they will be considered a "merchant" and have to follow additional, more specific rules.
Hypothetical
Hypo 1: Bob owns a house. Sam owns a painting company. Bob hires Sam to paint his house. Result: Painting a house is a service, so common law applies to their contract.
Hypo 2: Bob owns a house. Sam owns a painting company. Bob wants to paint his own house, but contracts with Sam to supply the paint. Result: Paint is a good, so UCC law applies to their contract.
Hypo 2: Bob owns a house. Sam owns a painting company. Bob wants to paint his own house, but contracts with Sam to supply the paint. Result: Paint is a good, so UCC law applies to their contract.
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