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What is a sale?
transfer of title to goods from seller to buyer
What is a lease?
transfer of right to possession and use of goods in return for consideration
What are the 2 kinds of leases?
consumer lease -- merchant to individual for personal, family, or household use
finance lease -- generally 3 parties; lessor, supplier, lessee
What are the laws/statutes governing sales and leases?
- sales -- Article 2 of UCC or CL
- leases -- Article 2A of UCC or CL
- international commerce -- CISG
What is the good faith principle?
UCC requires sales and leases to be performed with honesty in fact, and merchants to observe reasonable commercial standards
What is the battle of the forms?
if offer form is different from acceptance form
Describe how UCC provisions differ from common law provisions.
definiteness of terms -- open term provisions, quantity has to be defined
counteroffers -- battle of the forms
contract modification -- consideration does exist if both parties agree in good faith
irrevocable offers -- option contract and firm offer (= merchant promised in writing to keep offer open)
manner of acceptance -- reasonable manner
statute of fraud -- sale of goods priced at least $500 has to be in writing
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