(a) Unless the context requires another, words or expressions defined in this Section or in additional definitions in other Articles of the Single Commercial Code that apply to certain Articles or parts thereof shall have the meaning indicated. (3) A “termination” is when a party, under a power created by an agreement or law, terminates the contract in a manner other than that of its breach. In the event of “termination”, all obligations that are still performed on both sides are fulfilled, but any right based on a previous breach or performance is maintained. (24) “currency” means a medium of exchange that is currently authorized or accepted by a national or foreign government. The term refers to a monetary unit of account established by an intergovernmental organization or by an agreement between two or more countries. An offer confers on another party the power of acceptance and contains the essential elements of the agreement that must be final and secure. For example, if a supplier tells you, “I offer to sell you my scooter for four hundred dollars,” then that offer is valid. It contains the price, the person to whom the offer is made and the purpose of the offer (i.e. the scooter). It creates a force of acceptance in you, the supplier. (40) `duration` means a part of an agreement relating to a given matter. (12) “contract”, unlike “agreement”, means the entire legal obligation arising from the agreement concluded by the parties, as defined by the Single Commercial Code in the application of other applicable laws. The DPP is relevant for many types of business transactions, from the exchange of goods and the transfer of money to the sale of securities, as well as the content of leasing contracts.
Find out what this series of laws covers and how they affect business in the United States. For a contract to be valid, the subject matter of the contract must be for legal purposes. When an illicit drug distributor hires a pilot to fly his illegal cargo to a particular location for payment, it is a contract for an illegal object. If the dealer does not respect his payment commitment or if the pilot does not respect his agreement for the transport of the cargo, none of the victims will remedy in our courts, even if the contractual elements are all present and perfectly molded. A UCC-1 financing statement (short for Uniform Commercial Code-1) is a legal form that a creditor files to signify that he or she has or could have an interest in the personal property of a debtor (a person who owes a debt to the creditor, as usually stated in the debt creation agreement). This form is filed to “perfect” a creditor`s security interest by publicly stating that there is a right to take possession and sell certain assets to repay a particular debt with a certain priority. Such sales ads are often found in local newspapers. Once the form is filed, the creditor establishes relative priority over the debtor`s other creditors.  This process is also called “collateral interest enhancement” for the property, and this type of loan is a secured loan.  A declaration of financing may also be filed by a lessor of establishments in the real estate documents in order to determine the priority of the lessor`s rights over a holder of a mortgage or other mortgage right on the immovable property.
The creditor`s rights vis-à-vis the debtor and the lessor`s rights vis-à-vis the lessee are based on the credit documents or.dem lease and not on the financing statement. The main differences between common law contracts and the UZK are the UCC`s relaxation of different common law requirements. In the table below, you will find a comparison between the requirements applicable to the common law and the conclusion of the UCC contract. For example, in the event of a formal struggle between traders, the contradictory terms of the contract are not lethal. .