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Friday, 19 July 2013

Performance of Sales and Lease Contracts

Introduction
Seller must transfer and deliver conforming goods.
Buyer must accept and pay for conforming goods.
In the absence of an agreement between Seller and Buyer, UCC Article 2 controls as set out below.
Good Faith Requirement
Good Faith is the foundation of every UCC commercial contract.
Good faith means honesty in fact.
For a merchant, it means honesty in fact and observance of reasonable commercial standards of fair dealing in the trade. Merchants are held to a higher standard of care than non-merchants.

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