Business Law Principles and Practices

When one party breaches a sales contract, the UCC places the risk of loss on the party responsible for the breach.

Title and risk of loss must pass from seller to buyer according to the provisions of the UCC.

In a sale of goods, risk of loss is generally more important than when title passes from seller to buyer.

The UCC shifted the emphasis from title to risk of loss because it was often difficult to tell exactly when the title was passed from the seller to the buyer.

A contract for the sale of goods is either a present sale or a contract to sell.

A contract to sell is a sale of identified goods.

Goods become identified when the seller and the buyer decide on the exact goods to be sold.

Whether the seller is a merchant or a nonmerchant and if no shipment or delivery is required by the seller, risk of loss passes when the buyer actually takes possession of the goods.

In some sales of goods, the seller is required to ship the goods to the buyer.

Under the common law the location of title formed the basis of the sale of goods to the buyer.

A sale on approval is a present sale.

If goods delivered to a buyer are intended to be resold to consumers, the transaction is considered to be a sale on approval.

Title determines whether goods are the subject of a present sale or a contract to sell.

Generally, a buyer obtains no better title to goods than the seller had.

A bill of sale is proof of ownership.

Under the UCC,

The UCC, Article 2,

Goods that are not in existence and not yet identified are called

DeBruin went to CompuTown to buy an Ibex personal computer. The store was sold out but agreed to order one. This transaction is a

When goods are in existence and identifiable, title passes from the seller to the buyer