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- 672.101 Short title. - Chapter 672 shall be known and may be
- cited as the "Uniform Commercial Code-Sales."
-
- 672.102 Scope; certain security and other transactions excluded
- from this chapter. - Unless the context otherwise requires, this
- chapter applies to transactions in goods; it does not apply to
- any transaction which although in the form of an unconditional
- contract to sell or present sale is intended to operate only as a
- security transaction nor does this chapter impair or repeal any
- statute regulating sales to consumers, farmers or other specified
- classes of buyers.
-
- 672.103 Definitions and index of definitions. -
- (1) In this chapter unless the context otherwise requires:
- (a) "Buyer" means a person who buys or contracts to buy goods.
- (b) "Good faith" in the case of a merchant means honesty in fact
- and the observance of reasonable commercial standards of fair
- dealing in the trade.
- (c) "Receipt" of goods means taking physical possession of them.
- (d) "Seller" means a person who sells or contracts to sell goods.
- (2) Other definitions applying to this chapter, or to specified
- parts thereof, and the sections in which they appear are:
- "Acceptance," s. 672.606.
- "Banker's credit," s. 672.325.
- "Between merchants," s. 672.104.
- "Cancellation," s.672.106(4).
- "Commercial unit," s. 672.105.
- "Confirmed credit," s. 672.325.
- "Conforming to contract," s. 672.106.
- "Contract for sale," s. 672.106.
- "Cover," s. 672.712
- "Entrusting," s. 672.403
- "Financing agency," s. 672.1056
- "Future goods," s. 672.105.
- "Goods," s. 672.105.
- "Identification," s. 672.501
- "Installment contract," s. 672.612
- "Letter of credit," s. 672.325
- "Lot," s. 672.105.
- "Merchant," s. 672.104.
- "Overseas," s. 672.323.
- "Person in position of seller," s. 672.707.
- "Present sale," s. 672.106.
- "Sale," s. 672.106.
- "Sale on approval," s. 672.326.
- "Sale or return," s. 672.326.
- "Termination," s. 672.106.
- (3) The following definitions in other chapters apply to this
- chapter:
- "Check," s.673.104.
- "Consignee," s. 677.102
- "Consignor," s. 677.102.
- "Consumer goods," s. 679.109.
- "Dishonor," s. 673.507
- "Draft," s. 673.104
- (4) In addition chapter 671 contains general definitions and
- principles of construction and interpretation applicable
- throughout this chapter.
-
- 672.104 Definitions: "merchant"; "between merchants";
- "financing agency." -
- (1) "Merchant" means a person who deals in goods of the kind or
- otherwise by his occupation holds himself out as having knowledge
- or skill peculiar to the practices or goods involved in the
- transaction or to whom such knowledge or skill may be attributed
- by his employment of an agent or broker or other intermediary who
- by his occupation holds himself out as having such knowledge or
- skill.
- (2) "Financing agency" means a bank, finance company or other
- person who in the ordinary course of business makes advances
- against goods or documents of title or who by arrangement with
- either the seller or the buyer intervenes unordinary course
- to make or collect payment due or claimed under the contract for
- sale, as by purchasing or paying the seller's draft or making
- advances against it or by merely taking it for collection whether
- or not documents of title accompany the draft. "Financing
- agency" includes also a banker other person who similarly
- intervenes between persons who are in the position of seller and
- buyer in respect to the goods (s.672.707).
- (3) "Between merchants" means in any transaction with respect to
- which both parties are chargeable with the knowledge or skill of
- merchants.
-
- 672.105 Definitions: transferability; "goods"; "future" goods;
- "lot"; "commercial unit." -
- (1) "Goods" means all things (included specially manufactured
- goods) which are movable at the time of identification to the
- contract for sale other than the money in which the price is to
- be paid, investment securities (chapter 678) and things in
- action. "Goods" also includes the unborn young of animals and
- growing crops and other identified things attached to realty as
- described in the section on goods to be severed from realty (s.
- 672.107).
- (2) Goods must be both existing and identified before any
- interest in them can pass. Goods which are not both existing and
- identified are "future" goods. A purported present sale of
- future goods or of any interest therein operates as a contract to
- sell.
- (3) There may be a sale of a part interest in existing identified
- goods.
- (4) An undivided share in an identified bulk of fungible goods is
- sufficiently identified to be sold although the quantity of the
- bulk is not determined. Any agreed proportion of such a bulk or
- any quantity thereof agreed upon by number, weight or other
- measure may to the extent of the seller's interest in the bulk be
- sold to the buyer who then becomes an owner in common.
- (5) "Lot" means a parcel or a single article which is the subject
- matter of a separate sale or delivery whether or not is
- sufficient to perform the contract.
- (6) "Commercial unit" means such a unit of goods as by commercial
- usage is a single whole for purposes of sale and division of
- which materially impairs its character or value on the market or
- in use. A commercial unit may be a single article (as a machine)
- or a set of articles (as a suite of furniture or an assortment of
- sizes) or a quantity (as a bale, gross, or carload) or any other
- unit treated in use or in the relevant market as a single whole.
-
- 672.106 Definition: "contract"; "agreement"; "contract for
- sale"; "sale"; "present sale"; "conforming" to contract;
- "termination"; "cancellation." -
- (1) In this chapter unless the context otherwise requires
- "contract" and "agreement" are limited to those relating to the
- present or future sale of goods. "Contract for sale" includes
- both a present sale of goods and a contract to sell goods at a
- future time. A "sale" consists in the passing of title from the
- seller to the buyer for a price (s. 672.401). A "present sale"
- means a sale which is accomplished.
- (2) Goods or conduct including any part of a performance are
- "conforming" or conform to the contract when they are in
- accordance with the obligations under the contract.
- (3) "Termination" occurs when either party pursuant to a power
- created by agreement or law puts an end to the contract otherwise
- than for its breach. On termination, all obligations which are
- still executory on both sides are discharged but any right based
- on prior breach or performance survives.
- (4) "Cancellation" occurs when either party puts an end to the
- contract for breach by the other and its effect is the same as
- that of "termination" except that the canceling party also
- retains any remedy for breach of the whole contract or any
- unperformed balance.
-
- 672.107 Goods to be severed from realty; recording. -
- (1) A contract for the sale of minerals or the like (including
- oil and gas) or a structure or its materials to be removed from
- realty is a contract for the sale of goods within this chapter if
- they are to be severed by the seller, nut until severance a
- purported present sale thereof which is not effective as a
- transfer of an interest in land is effective only as a contract
- to sell.
- (2) A contract for the sale apart from the land of growing crops
- or other things attached to realty and capable of severance
- without material harm thereto but not described in subsection (1)
- or of timber to be cut is a contract for the sale of goods within
- this chapter whether the subject matter is to be severed by the
- buyer or by the seller even though it forms part of the realty at
- the time of contracting, and the parties can by identification
- effect a present sale before severance.
- (3) The provisions of this section are subject to any third-party
- rights provided by the law relating to realty records, and the
- contract for sale may be executed and recorded as a document
- transferring an interest in land and shall then constitute notice
- to third parties of the buyer's rights under the contract for
- sale.
- 672.201 Formal requirements; statute of frauds.-
- (1) Except as otherwise provided in this section a contract for
- the sale of goods for the price of $500.00 or more is not
- enforceable by way of action or defense unless there is some
- writing sufficient to indicate that a contract for sale has been
- made between the parties and signed by the party against whom
- enforcement is sought or by his authorized agent or broker. A
- writing is not insufficient because it omits or incorrectly
- states a term agreed upon but the contract is not enforceable
- under this paragraph beyond the quantity of goods shown in such
- writing.
- (2) Between merchants if within a reasonable time a writing is
- confirmation of the contract and sufficient against the sender is
- received and the party receiving it has reason to know its
- contents, it satisfies the requirements of subsection (1) against
- such party unless written notice of objection to its contents is
- given within 10 days after it is received.
- (3) A contract which does not satisfy the requirements of
- subsection(1) but which is valid in other respects is
- enforceable:
- (a) If the goods are to be specially manufactured for the buyer
- and are not suitable for sale to others in the ordinary course of
- the seller's business and the seller, before notice of
- repudiation is received and under circumstances which reasonably
- indicate that the goods are for the buyer, has made either a
- substantial beginning of their manufacture or commitments for
- their procurement; or
- (b) If the party against whom enforcement is sought admits in his
- pleading, testimony or otherwise in court that a contract is not
- enforceable under this provision beyond the quantity of goods
- admitted;or
- (c) With respect to goods for which payment has been made and
- accepted or which have been received and accepted.
-
- 672.202 Final written expression; parol or extrinsic evidence.-
- Terms with respect to which the confirmatory memoranda of the
- parties agree or which are otherwise set forth in writing
- intended by the parties as a final expression of their agreement
- with respect to such terms as are included therein may not be
- contradicted by evidence of any prior agreement or of a
- contemporaneous oral agreement but may be explained or
- supplemented:
- (1) By course of dealing or usage of trade (s. 671.205) or by
- course of performance (s. 672.208); and
- (2) By evidence of consistent additional terms unless the court
- finds the writing to have been intended also as a complete and
- exclusive statement of the terms of the agreement.
-
- 672.203 Seals inoperative. -the affixing of a seal to a writing
- evidencing a contract for sale or an offer to buy or sell goods
- does not constitute the writing a sealed instrument and the law
- with respect to sealed instruments does not apply to such a
- contract or offer.
-
- 672.204 Formation in general.-
- (1) A contract for sale of goods may be made in any manner
- sufficient to show agreement, including conduct by both parties
- which recognizes the existence of such a contract.
- (2) An agreement sufficient constitute a contract for
- sale may be found even though the moment of its making is
- undetermined.
- (3) Even though one or more terms are left open a contract for
- sale does not fail for indefiniteness if the parties have
- intended to make a contract and there is a reasonably certain
- basis for giving an appropriate remedy.
-
- 672.205 Firm offers. -An offer by a merchant to buy or sell
- goods in a signed writing which by its terms gives assurance that
- it will be held open is not revocable, for lack of consideration,
- during the time stated or if no time is stated for a reasonable
- time, but in no event may such period of irrevocability exceed 3
- months; but any such term of assurance on a form supplied by the
- offeree must be separately signed by the offeror.
-
- 672.206 Offer and acceptance in formation of contract.-
- (1) Unless otherwise unambiguously indicated by the language or
- circumstances:
- (a) An offer to make a contract shall be construed as inviting
- acceptance in any manner and by any medium reasonable in the
- circumstances;
- (b) An order or other offer to buy goods for prompt or current
- shipment shall be construed as inviting acceptance either by a
- prompt promise to ship or by the prompt or current shipment of
- conforming or nonconforming goods, but such a shipment of
- conforming or nonconforming goods, but such a shipment of
- nonconforming goods does not constitute an acceptance if the
- seller seasonably notifies the buyer that the shipment is offered
- only as an accommodation to the buyer.
- (2) Where the beginning of a requested performance is a
- reasonable mode of acceptance an offeror who is not notified of
- acceptance within a reasonable time may treat the offer as having
- lapsed before acceptance.
-
- 627.207 Additional terms in acceptance or confirmation. -
- (1) A definite and seasonable expression of acceptance or a
- written confirmation which is sent within a reasonable time
- operates as n acceptance even though it states terms additional
- to or different from those offered or agreed upon, unless
- acceptance is expressly made conditional on assent to the
- additional or different terms.
- (2) the additional terms are to be construed as proposals for
- addition to the contract. Between merchants such terms become
- part of the contract unless:
- (a) The offer expressly limits acceptance to the terms of the
- offer;
- (b) They materially alter it; or
- (c) Notification of objection to them has already been given or
- is given within a reasonable time after notice of them is
- received.
- (3) Conduct by both parties which recognizes the existence of a
- contract is sufficient to establish a contract for sale although
- the writings of the parties do not otherwise establish a
- contract. In such case the terms of the particular contract
- consist of those terms on which the writings of the parties
- agree, together with any supplementary terms incorporated under
- any other provisions of this code.
-
- 672.208 Course of performance or practical construction.-
- (1) Where the contract for sale involves repeated occasions for
- performance by either party with knowledge of the nature of the
- performance and opportunity for objection to it by the other, any
- course of performance accepted or acquiesced in without objection
- shall be relevant to determine the meaning of the agreement.
- (2) the express terms of the agreement and any such course of
- performance, as well as any course of dealing and usage of trade,
- shall be construed whenever reasonable as consistent with
- each other; nut when such construction is unreasonable, express
- terms shall control course of performance and course of
- performance shall control both course of dealing and usage of
- trade. (s. 671.205).
- (3) Subject to the provisions of the next section on modification
- and waiver, such course of performance shall be relevant to show
- a waiver or modification of any term inconsistent with such
- course of performance.
-
- 672.209 Modification, recission, and waiver.-
- (1) An agreement modifying a contract within this chapter needs
- no consideration to be binding.
- (2) A signed agreement which excludes modification or rescission
- except by a signed writing cannot be otherwise modified or
- rescinded, but except as between merchants such a requirement on
- a form supplied by the merchant must be separately signed by the
- other party.
- (3) The requirements of the statute of frauds section of this
- chapter (s.672.201) must be satisfied if the contract as modified
- is within its provisions.
- (4) Although an attempt at modification or rescission does not
- satisfy the requirements of subsection (2) or (3) it can operate
- as a waiver.
- (5) A party who has made a waiver affecting an executory portion
- of the contract may retract the waiver by reasonable notification
- received by the other party that strict performance will be
- required of any term waived, unless the retraction would be
- unjust in view of a material change of position in reliance on
- the waiver.
-
- 672.210 Delegation of performance; assignment of rights.-
- (1) A party may perform his duty through a delegate unless
- otherwise agreed or unless the other party has a substantial
- interest in having his original promisor perform or control the
- acts required by the contract. No delegation of performance
- relieves the party delegating of any duty to perform or
- any liability for breach.
- (2) Unless otherwise agreed all rights of either seller or buyer
- can be assigned except where the assignment would materially
- change the duty of the other party, or increase materially the
- burden or risk imposed on him by his contract, or impair
- materially the burden or risk imposed on him buy his contract, or
- impair materially his chance of obtaining return performance. A
- right to damages for breach of the whole contract or a right
- arising out of the assignor's due performance of his entire
- obligation can be assigned despite agreement otherwise.
- (3) Unless the circumstances indicate the contrary a prohibition
- of assignment of "the contract" is to be construed as barring
- only the delegation to the assignee of the assignor's
- performance.
- (4) An assignment of "the contract" or of "all my rights under
- the contract" or an assignment in similar general terms is an
- assignment of rights and unless the language or the circumstances
- (as in an assignment for security) indicate the contrary, it is a
- delegation of performance of the duties of the assignor and its
- acceptance by the assignee constitutes a promise by him to
- perform those duties. This promise is enforceable by either the
- assignor or the other party to the original contract.
- (5) the other party may treat any assignment which delegates
- performance as creating reasonable grounds for insecurity and may
- without prejudice to his rights against the assignor demand
- assurances from the assignee