Key Concept 2 What is a Merchant The UCC often has special rules for merchants

Key concept 2 what is a merchant the ucc often has

This preview shows page 47 - 49 out of 59 pages.

Key Concept 2: What is a Merchant?
Image of page 47
For now, we continue our overview of the UCC with four key provisions in Article 2 that will come up again later in the course. Generally, these highlighted ideas are notapplicable to contracts that are governed by common law rules.Rather, these laws are governed by Article 2 of the UCC. We are effectively presenting a series of contract rules that are special to Article 2.[1].Listed below are the four key provisions: Contract FormationUnder the firm offer rule,if a merchant signs a written promise to keep an offer open for a set amount of time, it must honor the promise even if it has received no payment for making the promise.And so, if a car dealer gives you a signed, written promise that "the offer to sell the blue sedan for $25,000 is open until Friday at 5:00 PM," then the dealer cannot revoke the offer to sell you the car until Friday at 5:00 PM.The UCC has a series of gap-filler provisions, so that even if parties forget to include some specific things in a contract (such as when deliveries will be made or how payment will be made), they can be determined by a court. Also, battle of the forms provisions allow a court to iron out some disagreements between parties.Contract EnforcementArticle 2 contains a statute of frauds provision, which requires that sale of goods contracts of over $500 must be in writing to be enforceable.If you andI have a verbal, handshake agreement that you will pay me $100 for my used TV, then the verbal agreement can amount to an enforceable contract. But if we have a verbal agreement that you will buy my used car for $10,000,you do not have to buy the car unless one of the special circumstances described in the reading assignment applies to the deal.
Image of page 48
Image of page 49

You've reached the end of your free preview.

Want to read all 59 pages?

  • Spring '08
  • BREDESON
  • Law, Supreme Court of the United States, Appellate court

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture