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Sales and Leasing
University of Toledo School of Law
Eisler, Beth A.

First question for analysis: what law applies to this situation?
l        1. Article 2
       Applies to transaction in goods
■        ALSO, trading goods for other goods
■        UCC 2-105 – GOODS = all things movable
l        Does not include:
       real estate
       stocks / bonds
       services / intagibles
■        UCC 2-107 – GOODS SEVERED FROM REALTY
l        Must be severed by the seller (apart from the land) for Article 2 to apply:
       minerals,oil,gas, ice, water
       any structure on the land
       growing crops
l        2. Article 2A 
       Applies to leases of goods
l        3. CISG
       Applies to certain kinds of international transactions in goods
■        1. parties in different countries
■        2. countries signatories to the treaty
■        3. parties do not agree to be bound by some other body of law
l        need clear language showing that parties intended to opt out of the CISG.
l        express language: Ex: “no CISG, but UCC instead”.
       Ex: “we want American law to apply” not good enough
       CISG does not apply to the following:
■        personal injury (5)
■        sale of consumer goods (2(a))
■        goods sold by auction or pursuant to execution (2 (b), (c))
■        sale of ships, vessels, hovercraft, or aircraft (2 (f))
l        4. Common Law
       contracts under U.S. Law where the UCC doesn’t apply.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Scope: UCC Article 2:
l        Things fixed to realty
       article 2 doesn’t apply if not severed by the seller
       Exception = timber – see 2-107(2)
■        doesn’t matter if timber is not severed by the seller
l        article 2 still applies
l        Computers – software – technological intellectual property
       UCITA
■    

arpet in house
       carpet itself covered by UCC article 2
       installation = service – covered by common law
l        However, can’t split up contract when you have a formation issue.
 
 
K FORMATION UNDER ARTICLE 2
 
UCC 2-204 : contract formation in general
l        2-204 (3) Test for contract formation:
       1. the parties intend to make a contract
       2. AND the court can fashion and appropriate remedy
l        contract can be made in any manner sufficient to show agreement, including conduct
l        the moment of the contract’s making need not be determined
l        can leave some terms open
       place of delivery – 2-308
       warranty – 2-312 to 2-318
open price term – 2-305