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Post commentary on the importance of having Article 2 UCC gap filler provisions and the importance of allowing parties to have the freedom to contract

Post commentary on the importance of having Article 2 UCC gap filler provisions and the importance of allowing parties to have the freedom to contract that the UCC is supposed to foster.

"What Is UCC Article 2?

UCC stands for theUniform Commercial Code, which governs many different types of contract interactions. Article 2 is a popularly cited provision in this body of statutes, since it governs contracts for the sale of goods between merchants or between a merchant and a non-merchant. The UCC basically sets forth standards of conduct that merchants are supposed to employ whenever engaging in business contracts and other matters

Transactions between non-merchants aren't covered. The reason for this is that merchants are deemed to have special knowledge in their business practice; ordinary citizens don't usually have such knowledge and therefore UCC standards don't apply to them. Therefore, UCC Article 2 is often a major part of many breach of contract cases.

What Are Some Common Issues Covered by Article 2 of the UCC?

Article 2 covers many issues regarding thesale of goodsbetween merchants. Some common issues covered include:

  • The definition of "goods" (i.e., any tangible item that can be moved- this excludes services, non-tangible securities, and real property)
  • Situations involving missing terms in a contract, such as a missing quantity, price, or a missing product description
  • Conflicts involvingoffers and acceptancesof contract terms
  • Cases questioning prior business dealings between two merchant parties
  • Modifications of contracts
  • Exchange of consideration for items of value

What Else Is Covered in the UCC?

Article 1 of the UCC covers general provisions for contracts and introduces several definitions. The remaining Articles of the Uniform Commercial Code cover other aspects of business interactions, such as credit, leases, payment obligations, and bulk transfers of business inventory. These can sometimes be intertwined with the issues covered in Article 2 of the Code, and can often be involved in the same lawsuit."

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