Question

1. Explain what determines whether a contract is covered by the UCC.
2. Give an example of a mixed contract that would be considered a UCC contract.

Answer 1

1. Depending on the contract it can fall under UCC or common law. There will be huge difference in the final dispute output in both the laws. So it is important that we should know first whether the contract comes under UCC or the common law. All contracts related to sale of goods and securities comes under UCC. Where is the common law includes contracts related to insurane, employment, services, etc. UCC and common law differs in various ways like in terms of acceptance, quantity and other things, ignoring or providing minute attention to minor changes etc. There are also cases where it is a mixed contract which is considered by UCC or common law depending on its dominance.

2. Suppose I have made a contract for the construction of in-ground swimming pool with a contractor. The work includes providing both service and goods. This is a mixed contract. Suppose after the construction of the swimming pool it was found that there is some problem with the products used or there is some problem in the design, then it is related with the goods or the products that was used in the swimming pool. Now if the owner claims for the faulty design to the contractor it will come under UCC as it is dominated by the products/ goods used.

2.