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(810 ILCS 5/Art.
2 heading)
ARTICLE
2
SALES
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(810 ILCS 5/Art.
2 Pt. 1 heading)
PART
1. SHORT TITLE, GENERAL
CONSTRUCTION
AND SUBJECT MATTER
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(810 ILCS 5/2-101) (from Ch. 26,
par. 2-101)
Sec. 2-101. Short title.
This Article shall be known and
may be cited as Uniform Commercial Code--Sales.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-102) (from Ch. 26,
par. 2-102)
Sec. 2-102. Scope; certain
security and other transactions excluded from this article.
Unless the context otherwise requires,
this Article applies to transactions in goods; it does not apply
to any transaction which although in the form of an unconditional
contract to sell or present sale is intended to operate only
as a security transaction nor does this Article impair or repeal
any statute regulating sales to consumers, farmers or other specified
classes of buyers.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-103) (from Ch. 26,
par. 2-103)
Sec. 2-103. Definitions and
index of definitions.
(1) In this Article unless the
context otherwise requires
(a) "Buyer" means
a person who buys or contracts to buy goods.
(b) "Good
faith" in the case of a merchant means honesty in fact and
the observance of reasonable commercial standards of fair dealing
in the trade.
(c) "Receipt" of
goods means taking physical possession of them.
(d) "Seller" means
a person who sells or contracts to sell goods.
(2) Other definitions applying
to this Article or to specified Parts thereof, and the sections
in which they appear are:
"Acceptance".
Section 2--606.
"Banker's
credit". Section 2--325.
"Between
merchants". Section 2--104.
"Cancellation".
Section 2--106(4).
"Commercial
unit". Section 2--105.
"Confirmed
credit". Section 2--325.
"Conforming
to contract". Section 2--106.
"Contract
for sale". Section 2--106.
"Cover".
Section 2--712.
"Entrusting".
Section 2--403.
"Financing
agency". Section 2--104.
"Future
goods". Section 2--105.
"Goods".
Section 2--105.
"Identification".
Section 2--501.
"Installment
contract". Section 2--612.
"Letter
of Credit". Section 2--325.
"Lot".
Section 2--105.
"Merchant".
Section 2--104.
"Overseas".
Section 2--323.
"Person
in position of seller". Section 2--707.
"Present
sale". Section 2--106.
"Sale".
Section 2--106.
"Sale
on approval". Section 2--326.
"Sale
or return". Section 2--326.
"Termination".
Section 2--106.
(3) The following definitions in
other Articles apply to this Article:
"Check".
Section 3--104.
"Consignee".
Section 7--102.
"Consignor".
Section 7--102.
"Consumer
goods". Section 9-102.
"Dishonor".
Section 3-502.
"Draft".
Section 3--104.
(4) In addition Article 1 contains
general definitions and principles of construction and interpretation
applicable throughout this Article.
(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/2-104) (from Ch. 26, par. 2-104)
Sec. 2-104. Definitions. "merchant"; "between
merchants"; "financing agency".
(1) "Merchant" means
a person who deals in goods of the kind or otherwise by his occupation
holds himself out as having knowledge or skill peculiar to the
practices or goods involved in the transaction or to whom such
knowledge or skill may be attributed by his employment of an
agent or broker or other intermediary who by his occupation holds
himself out as having such knowledge or skill.
(2) "Financing agency" means
a bank, finance company or other person who in the ordinary course
of business makes advances against goods or documents of title
or who by arrangement with either the seller or the buyer intervenes
in ordinary course to make or collect payment due or claimed
under the contract for sale, as by purchasing or paying the seller's
draft or making advances against it or by merely taking it for
collection whether or not documents of title accompany the draft. "Financing
agency" includes also a bank or other person who similarly
intervenes between persons who are in the position of seller
and buyer in respect to the goods (Section 2--707).
(3) "Between merchants" means
in any transaction with respect to which both parties are chargeable
with the knowledge or skill of merchants.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-105) (from Ch. 26, par. 2-105)
Sec. 2-105. Definitions:
transferability; "goods"; "future" goods; "lot"; "commercial
unit".
(1) "Goods" means all
things, including specially manufactured goods, which are movable
at the time of identification to the contract for sale other
than the money in which the price is to be paid, investment securities
(Article 8) and things in action. "Goods" also includes
the unborn young of animals and growing crops and other identified
things attached to realty as described in the section on goods
to be severed from realty (Section 2--107).
(2) Goods must be both existing
and identified before any interest in them can pass. Goods which
are not both existing and identified are "future" goods.
A purported present sale of future goods or of any interest therein
operates as a contract to sell.
(3) There may be a sale of a part
interest in existing identified goods.
(4) An undivided share in an identified
bulk of fungible goods is sufficiently identified to be sold
although the quantity of the bulk is not determined. Any agreed
proportion of such a bulk or any quantity thereof agreed upon
by number, weight or other measure may to the extent of the seller's
interest in the bulk be sold to the buyer who then becomes an
owner in common.
(5) "Lot" means a parcel
or a single article which is the subject matter of a separate
sale or delivery, whether or not it is sufficient to perform
the contract.
(6) "Commercial unit" means
such a unit of goods as by commercial usage is a single whole
for purposes of sale and division of which materially impairs
its character or value on the market or in use. A commercial
unit may be a single article (as a machine) or a set of articles
(as a suite of furniture or an assortment of sizes) or a quantity
(as a bale, gross, or carload) or any other unit treated in use
or in the relevant market as a single whole.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-106) (from Ch. 26, par. 2-106)
Sec. 2-106. Definitions. "contract"; "agreement"; "contract
for sale"; "sale"; "present sale"; "conforming" to
contract; "termination"; "cancellation".
(1) In this Article unless the
context otherwise requires "contract" and "agreement" are
limited to those relating to the present or future sale of goods. "Contract
for sale" includes both a present sale of goods and a contract
to sell goods at a future time. A "sale" consists in
the passing of title from the seller to the buyer for a price
(Section 2--401). A "present sale" means
a sale which is accomplished by the making of the contract.
(2) Goods or conduct including
any part of a performance are "conforming" or conform
to the contract when they are in accordance with the obligations
under the contract.
(3) "Termination" occurs
when either party pursuant to a power created by agreement or
law puts an end to the contract otherwise than for its breach.
On "termination" all obligations which are still executory
on both sides are discharged but any right based on prior breach
or performance survives.
(4) "Cancellation" occurs
when either party puts an end to the contract for breach by the
other and its effect is the same as that of "termination" except
that the cancelling party also retains any remedy for breach
of the whole contract or any unperformed balance.
(Source: Laws 1961, 1st SS., p. 7.)
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(810 ILCS 5/2-107) (from Ch. 26, par. 2-107)
Sec. 2-107. Goods to Be Severed
From Realty: Recording.
(1) A contract for the sale of
minerals or the like (including oil and gas) or a structure or
its materials to be removed from realty is a contract for the
sale of goods within this Article if they are to be severed by
the seller but until severance a purported present sale thereof
which is not effective as a transfer of an interest in land is
effective only as a contract to sell.
(2) A contract for the sale apart
from the land of growing crops or other things attached to realty
and capable of severance without material harm thereto but not
described in subsection (1) or of timber to be cut is a contract
for the sale of goods within this Article whether the subject
matter is to be severed by the buyer or by the seller even though
it forms part of the realty at the time of contracting, and the
parties can by identification effect a present sale before severance.
(3) The provisions of this Section
are subject to any third party rights provided by the law relating
to realty records, and the contract for sale may be executed
and recorded as a document transferring an interest in land and
shall then constitute notice to third parties of the buyer's
rights under the contract for sale.
(Source: P. A. 77-2810.)
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(810 ILCS 5/Art.
2 Pt. 2 heading)
PART
2. FORM, FORMATION AND READJUSTMENT OF CONTRACT
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(810 ILCS 5/2-201) (from Ch. 26, par. 2-201)
Sec. 2-201. Formal requirements;
statute of frauds.
(1) Except as otherwise provided
in this Section a contract for the sale of goods for the price
of $500 or more is not enforceable by way of action or defense
unless there is some writing sufficient to indicate that a contract
for sale has been made between the parties and signed by the
party against whom enforcement is sought or by his authorized
agent or broker. A writing is not insufficient because it omits
or incorrectly states a term agreed upon but the contract is
not enforceable under this paragraph beyond the quantity of goods
shown in such writing.
(2) Between merchants if within
a reasonable time a writing in confirmation of the contract and
sufficient against the sender is received and the party receiving
it has reason to know its contents, it satisfies the requirements
of subsection (1) against such party unless written notice of
objection to its contents is given within 10 days after it is
received.
(3) A contract which does not satisfy
the requirements of subsection (1) but which is valid in other
respects is enforceable
(a) if
the goods are to be specially manufactured for the buyer and
are not suitable for sale to others in the ordinary course of
the seller's business and the seller, before notice of repudiation
is received and under circumstances which reasonably indicate
that the goods are for the buyer, has made either a substantial
beginning of their manufacture or commitments for their procurement;
or
(b) if
the party against whom enforcement is sought admits in his pleading,
testimony or otherwise in court that a contract for sale was
made, but the contract is not enforceable under this provision
beyond the quantity of goods admitted; or
(c) with
respect to goods for which payment has been made and accepted
or which have been received and accepted (Section 2--606).
(Source: Laws 1961, 1st SS., p. 7.)
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(810 ILCS 5/2-202) (from Ch. 26, par. 2-202)
Sec. 2-202. Final written
expression: parol or extrinsic evidence.
Terms with respect to which the
confirmatory memoranda of the parties agree or which are otherwise
set forth in a writing intended by the parties as a final expression
of their agreement with respect to such terms as are included
therein may not be contradicted by evidence of any prior agreement
or of a contemporaneous oral agreement but may be explained or
supplemented
(a) by
course of dealing or usage of trade (Section 1--205)
or by course of performance (Section 2--208); and
(b) by
evidence of consistent additional terms unless the court finds
the writing to have been intended also as a complete and exclusive
statement of the terms of the agreement.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-203) (from Ch. 26, par. 2-203)
Sec. 2-203. Seals inoperative.
The affixing of a seal to a writing
evidencing a contract for sale or an offer to buy or sell goods
does not constitute the writing a sealed instrument and the law
with respect to sealed instruments does not apply to such a contract
or offer.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-204) (from Ch. 26, par. 2-204)
Sec. 2-204. Formation in
general.
(1) A contract for sale of goods
may be made in any manner sufficient to show agreement, including
conduct by both parties which recognizes the existence of such
a contract.
(2) An agreement sufficient to
constitute a contract for sale may be found even though the moment
of its making is undetermined.
(3) Even though one or more terms
are left open a contract for sale does not fail for indefiniteness
if the parties have intended to make a contract and there is
a reasonably certain basis for giving an appropriate remedy.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-205) (from Ch. 26, par. 2-205)
Sec. 2-205. Firm offers.
An offer by a merchant to buy or
sell goods in a signed writing which by its terms gives assurance
that it will be held open is not revocable, for lack of consideration,
during the time stated or if no time is stated for a reasonable
time, but in no event may such period of irrevocability exceed
3 months; but any such term of assurance on a form supplied
by the offeree must be separately signed by the offeror.
(Source: Laws 1961, 1st SS., p. 7.)
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(810 ILCS 5/2-206) (from Ch. 26, par. 2-206)
Sec. 2-206. Offer and acceptance
in formation of contract.
(1) Unless otherwise unambiguously
indicated by the language or circumstances
(a) an
offer to make a contract shall be construed as inviting acceptance
in any manner and by any medium reasonable in the circumstances;
(b) an
order or other offer to buy goods for prompt or current shipment
shall be construed as inviting acceptance either by a prompt
promise to ship or by the prompt or current shipment of conforming
or non-conforming goods, but such a shipment of non-conforming
goods does not constitute an acceptance if the seller seasonably
notifies the buyer that the shipment is offered only as an accommodation
to the buyer.
(2) Where the beginning of a requested
performance is a reasonable mode of acceptance an offeror who
is not notified of acceptance within a reasonable time may treat
the offer as having lapsed before acceptance.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-207) (from Ch. 26, par. 2-207)
Sec. 2-207. Additional terms
in acceptance or confirmation.
(1) A definite and seasonable expression
of acceptance or a written confirmation which is sent within
a reasonable time operates as an acceptance even though it states
terms additional to or different from those offered or agreed
upon, unless acceptance is expressly made conditional on assent
to the additional or different terms.
(2) The additional terms are to
be construed as proposals for addition to the contract. Between
merchants such terms become part of the contract unless:
(a) the
offer expressly limits acceptance to the terms of the offer;
(b) they
materially alter it; or
(c) notification
of objection to them has already been given or is given within
a reasonable time after notice of them is received.
(3) Conduct by both parties which
recognizes the existence of a contract is sufficient to establish
a contract for sale although the writings of the parties do not
otherwise establish a contract. In such case the terms of the
particular contract consist of those terms on which the writings
of the parties agree, together with any supplementary terms incorporated
under any other provisions of this Act.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-208) (from Ch. 26, par. 2-208)
Sec. 2-208. Course of performance
or practical construction.
(1) Where the contract for sale
involves repeated occasions for performance by either party with
knowledge of the nature of the performance and opportunity for
objection to it by the other, any course of performance accepted
or acquiesced in without objection shall be relevant to determine
the meaning of the agreement.
(2) The express terms of the agreement
and any such course of performance, as well as any course of
dealing and usage of trade, shall be construed whenever reasonable
as consistent with each other; but when such construction is
unreasonable, express terms shall control course of performance
and course of performance shall control both course of dealing
and usage of trade (Section 1--205).
(3) Subject to the provisions of
the next section on modification and waiver, such course of performance
shall be relevant to show a waiver or modification of any term
inconsistent with such course of performance.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-209) (from Ch. 26, par. 2-209)
Sec. 2-209. Modification,
rescission and waiver.
(1) An agreement modifying a contract
within this Article needs no consideration to be binding.
(2) A signed agreement which excludes
modification or rescission except by a signed writing cannot
be otherwise modified or rescinded, but except as between merchants
such a requirement on a form supplied by the merchant must be
separately signed by the other party.
(3) The requirements of the statute
of frauds section of this Article (Section 2--201)
must be satisfied if the contract as modified is within its provisions.
(4) Although an attempt at modification
or rescission does not satisfy the requirements of subsection
(2) or (3) it can operate as a waiver.
(5) A party who has made a waiver
affecting an executory portion of the contract may retract the
waiver by reasonable notification received by the other party
that strict performance will be required of any term waived,
unless the retraction would be unjust in view of a material change
of position in reliance on the waiver.
(Source: Laws 1961, 1st SS., p. 7.)
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(810 ILCS 5/2-210) (from Ch. 26, par. 2-210)
Sec. 2-210. Delegation of
performance; assignment of rights.
(1) A party may perform his duty
through a delegate unless otherwise agreed or unless the other
party has a substantial interest in having his original promisor
perform or control the acts required by the contract. No delegation
of performance relieves the party delegating of any duty to perform
or any liability for breach.
(2) Except as otherwise provided
in Section 9-406, unless otherwise agreed all rights of
either seller or buyer can be assigned except where the assignment
would materially change the duty of the other party, or increase
materially the burden or risk imposed on him by his contract,
or impair materially his chance of obtaining return performance.
A right to damages for breach of the whole contract or a right
arising out of the assignor's due performance of his entire obligation
can be assigned despite agreement otherwise.
(3) The creation, attachment, perfection,
or enforcement of a security interest in the seller's interest
under a contract is not a transfer that materially changes the
duty of or increases materially the burden or risk imposed on
the buyer or impairs materially the buyer's chance of obtaining
return performance with the purview of subsection (2) unless,
and then only to the extent that, enforcement actually results
in a delegation of material performance of the seller. Even in
that event, the creation, attachment, perfection, and enforcement
of the security interest remain effective, but (i) the seller
is liable to the buyer for damages caused by the delegation to
the extent that the damages could not reasonably be prevented
by the buyer, and (ii) a court having jurisdiction may grant
other appropriate relief, including cancellation of the contract
for sale or an injunction against enforcement of the security
interest or consummation of the enforcement.
(4) Unless the circumstances indicate
the contrary a prohibition of assignment of "the contract" is
to be construed as barring only the delegation to the assignee
of the assignor's performance.
(5) An assignment of "the
contract" or of "all my rights under the contract" or
an assignment in similar general terms is an assignment of rights
and unless the language or the circumstances (as in an assignment
for security) indicate the contrary, it is a delegation of performance
of the duties of the assignor and its acceptance by the assignee
constitutes a promise by him to perform those duties. This promise
is enforceable by either the assignor or the other party to the
original contract.
(6) The other party may treat any
assignment which delegates performance as creating reasonable
grounds for insecurity and may without prejudice to his rights
against the assignor demand assurances from the assignee (Section
2--609).
(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/Art.
2 Pt. 3 heading)
PART
3. GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT
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(810 ILCS 5/2-301) (from Ch. 26, par. 2-301)
Sec. 2-301. General obligations
of parties.
The obligation of the seller is
to transfer and deliver and that of the buyer is to accept and
pay in accordance with the contract.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-302) (from Ch. 26, par. 2-302)
Sec. 2-302. Unconscionable
contract or clause.
(1) If the court as a matter of
law finds the contract or any clause of the contract to have
been unconscionable at the time it was made the court may refuse
to enforce the contract, or it may enforce the remainder of the
contract without the unconscionable clause, or it may so limit
the application of any unconscionable clause as to avoid any
unconscionable result.
(2) When it is claimed or appears
to the court that the contract or any clause thereof may be unconscionable
the parties shall be afforded a reasonable opportunity to present
evidence as to its commercial setting, purpose and effect to
aid the court in making the determination.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-303) (from Ch. 26, par. 2-303)
Sec. 2-303. Allocation or
division of risks.
Where this Article allocates a
risk or a burden as between the parties "unless otherwise
agreed", the agreement may not only shift the allocation
but may also divide the risk or burden.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-304) (from Ch. 26, par. 2-304)
Sec. 2-304. Price payable
in money, goods, realty, or otherwise.
(1) The price can be made payable
in money or otherwise. If it is payable in whole or in part in
goods each party is a seller of the goods which he is to transfer.
(2) Even though all or part of
the price is payable in an interest in realty the transfer of
the goods and the seller's obligations with reference to them
are subject to this Article, but not the transfer of the interest
in realty or the transferor's obligations in connection therewith.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-305) (from Ch. 26, par. 2-305)
Sec. 2-305. Open price term.
(1) The parties if they so intend
can conclude a contract for sale even though the price is not
settled. In such a case the price is a reasonable price at the
time for delivery if
(a) nothing
is said as to price; or
(b) the
price is left to be agreed by the parties and they fail to agree;
or
(c) the
price is to be fixed in terms of some agreed market or other
standard as set or recorded by a third person or agency and it
is not so set or recorded.
(2) A price to be fixed by the
seller or by the buyer means a price for him to fix in good faith.
(3) When a price left to be fixed
otherwise than by agreement of the parties fails to be fixed
through fault of one party the other may at his option treat
the contract as cancelled or himself fix a reasonable price.
(4) Where, however, the parties
intend not to be bound unless the price be fixed or agreed and
it is not fixed or agreed there is no contract. In such a case
the buyer must return any goods already received or if unable
so to do must pay their reasonable value at the time of delivery
and the seller must return any portion of the price paid on account.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-306) (from Ch. 26, par. 2-306)
Sec. 2-306. Output, requirements
and exclusive dealings.
(1) A term which measures the quantity
by the output of the seller or the requirements of the buyer
means such actual output or requirements as may occur in good
faith, except that no quantity unreasonably disproportionate
to any stated estimate or in the absence of a stated estimate
to any normal or otherwise comparabl
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