Contracts Commons^™

Teaching Slavery In Commercial Law, Carliss N. Chatman

Scholarly Articles

Public status shapes private ordering. Personhood status, conferred or acknowledged by the state, determines whether one is a party to or the object of a contract. For much of our nation’s history, the law deemed all persons of African descent to have a limited status, if given personhood at all. The property and partial personhood status of African-Americans, combined with standards developed to facilitate the growth of the international commodities market for products including cotton, contributed to the current beliefs of business investors and even how communities of color are still governed and supported. The impact of that shift in …

Creating Cryptolaw For The Uniform Commercial Code, Carla L. Reyes

Washington and Lee Law Review

A contract generally only binds its parties. Security agreements, which create a security interest in specific personal property, stand out as a glaring exception to this rule. Under certain conditions, security interests not only bind the creditor and debtor, but also third-party creditors seeking to lend against the same collateral. To receive this extraordinary benefit, creditors must put the world on notice, usually by filing a financing statement with the state in which the debtor is located. Unfortunately, the Uniform Commercial Code (U.C.C.) Article 9 filing system fails to provide actual notice to interested parties and introduces risk of heavy …

Commercial Law Intersections, Giuliano Castellano, Andrea Tosato

All Faculty Scholarship

Commercial law is not a single, monolithic entity. It has grown into a dense thicket of subject-specific branches that govern a broad range of transactions and corporate actions. When one of these events falls concurrently within the purview of two or more of these commercial law branches - such as corporate law, intellectual property law, secured transactions law, conduct and prudential regulation - an overlap materializes. We refer to this legal phenomenon as a commercial law intersection (CLI). Some notable examples of transactions that feature CLIs include bank loans secured by shares, supply chain financing arrangements, patent cross-licensing, and blockchain-based …

The Economics Of Leasing, Thomas W. Merrill

Faculty Scholarship

Leasing may be the most important legal institution that has received virtually no systematic scholarly attention. Real property leasing is familiar in the context of residential tenancies. But it is also widely used in commercial contexts, including office buildings and shopping centers. Personal property leasing, which was rarely encountered before World War II, has more recently exploded on a world-wide basis, with everything from autos to farm equipment to airplanes being leased. This article seeks to develop a composite picture of the defining features of leases and why leasing is such a widespread and highly successful economic institution. The reasons …

Not So Good: The Classification Of “Smart Goods” Under Ucc Article 2, Chadwick L. Williams

Georgia State University Law Review

Refrigerators can now tweet. Today, almost sixty years after the states widely adopted the Uniform Commercial Code (UCC), the line between goods and services is more blurred than ever. When the UCC was drafted, a good was the simple opposite of a service. A good was something “movable” and tangible, and a service was not. Article 2 of the UCC, which governs sales, limits its scope to goods.

However, because Article 2 was drafted long before the proliferation of so-called “smart goods,” courts continuously struggle to determine when a smart good falls within Article 2’s scope. Courts have developed different …

Do We Need A Global Commercial Code?, Michael Joachim Bonell

Dickinson Law Review (2017-Present)

The International Institute for the Unification of Private Law (UNIDROIT) first launched the idea of preparing a code of inter- national trade law. In 1970, the Secretariat of UNIDROIT submitted a note to the newly established United Nations Commission on International Trade Law (UNCITRAL) in justification of such an initiative and indicated some of the salient features of the project. What was proposed was a veritable code in the continental sense. The proposed code included two parts: part one dealing with the law of obligations generally, and part two relating to specific kinds of commercial transactions. However, the “Progressive codification …

The Convention On The Uniform Law Of International Bills Of Exchange And International Promissory Notes: A Comparison To The Uniform Commercial Code, Harold S. White

Georgia Journal of International & Comparative Law

No abstract provided.

Soviet Accession To The Universal Copyright Convention: Possible Implications For Future Foreign Publication Of Dissidents’ Works, Lee J. Ross Jr.

Georgia Journal of International & Comparative Law

No abstract provided.

Contracting In The Age Of The Internet Of Things: Article 2 Of The Ucc And Beyond, Stacy-Ann Elvy

Articles & Chapters

This Article analyzes the global phenomenon of the Internet of Things (“IOT”) and its potential impact on consumer contracts for the sale of goods. Recent examples of IOT products include Amazon’s Dash Replenishment Service, which allows household devices to automatically reorder goods. By 2025, the IOT is estimated to have an economic impact of as much as $11.1 trillion. To date, there are approximately fifteen billion interconnected devices, and by 2020, there will be fifty billion such devices worldwide. IOT devices will revolutionize the way that consumers shop for consumable supplies and other goods. Consumers will no longer need to …

Bitcoin And The Uniform Commercial Code, Jeanne L. Schroeder

Articles

Much of the discussion of bitcoin in the popular press has concentrated on its status as a currency. Putting aside a vocal minority of radical libertarians and anarchists, however, many bitcoin enthusiasts are concentrating on how its underlying technology – the blockchain – can be put to use for wide variety of uses. For example, economists at the Fed and other central banks have suggested that they should encourage the evolution of bitcoin’s blockchain protocol which might allow financial transactions to clear much efficiently than under our current systems. As such, it also holds out the possibility of becoming that …

Bringing Continuity To Cryptocurrency: Commercial Law As A Guide To The Asset Categorization Of Bitcoin, Evan Hewitt

Seattle University Law Review

This Note will undertake to analyze bitcoin under the Uniform Commercial Code (UCC) and the Internal Revenue Code (IRC)—two important sources of commercial law—to see whether any existing asset categories adequately protect bitcoin’s commercial viability. This Note will demonstrate that although commercial law dictates that bitcoin should—nay must—be regulated as a currency in order to sustain its existence, the very definition of currency seems to preclude that from happening. Therefore, this Note will recommend that we experiment with a new type of asset that receives currency-like treatment, specifically designed for cryptocurrencies, under which bitcoin can be categorized in order to …

The Regression Of "Good Faith" In Maryland Commercial Law, Lisa D. Sparks

University of Baltimore Law Forum

“Good faith,” in the affirmative or as the absence of bad faith, has always been a challenge to define and judge as a matter of conduct, motive, or both. Different tests apply a subjective standard, an objective standard, or even a combination of the two. Some parties may be held to different expectations than others. This determination of good faith has always been fact-driven and somewhat transcendental. Until recently, however, the question invoked a construct of fairness, resting on a two-pronged metric, at least insofar as several key titles of the Maryland Uniform Commercial Code were concerned. Since June 1, …

Constitutional Law And Secured Transactions: State Action V. Private Action - Uniform Commercial Code Self-Help; Repossession Provisions - Do Not Violate Due Process Requirements; Adams V. Southern California First National Bank, David M. Hunter

Akron Law Review

Several years ago, the United States Supreme Court, in Sniadach v. Family Finance Corp.,' signaled what has been eventually interpreted in subsequent decisions as the strict measurement of creditors' rights against the requirements of due process set forth in the fourteenth amendment. What has since transpired has been an onslaught of litigation in this area of such magnitude that the due process requirements of prior notice and hearing found in Sniadach have been extended to virtually all forms of prejudgment remedies available to the aggrieved creditor. Despite all of this, the rationale of the Court of Appeals for the Ninth …

Negotiable Instruments - Forged Indorsements - Liability Of Payor And Collecting Banks - Uniform Commercial Code §3-419; Cooper V. Union Bank, James A. Wagner

Akron Law Review

The holding in Cooper v. Union Bank' is based on the court's interpretation of Uniform Commercial Code (hereinafter Code) section 3-4192 and the application of this section to collecting and payor banks.

Joseph Stell brought an action in conversion s as payee and true owner to recover funds paid by defendant banks on checks cashed by Stell's secretary. The secretary forged plaintiff's indorsement on twenty-nine checks over a sixteen-month period, cashing the checks at both payor and collcting banks. In an opinion affirmed by the appellate court the trial court held that the defendant banks qualified as representatives, acted in …

Wrongful Dishonor Under The Ucc: A Trip Through The Maze Of 4-402, David J. Leibson

Akron Law Review

WHEN MY NEGOTIABLE INSTRUMENTS CLASS is ready to consider Section 4-402 of the Uniform Commercial Code, I always like to start out by asking if anyone would have worded the language differently had they been drafting the section. Usually one of the first responses is to the effect that 4-402 is fine just the way it is because a bank should be made to answer to its customer if it fails to honor a properly payable item drawn upon it. My response to such an answer is twofold. First, I wholeheartedly agree that a bank should be held responsible for …

A Look At A Strict Construction Of Section 2-207 Of The Uniform Commercial Code From The Seller's Point Of View Or What's So Bad About Roto-Lith?, Thomas E. Liggett

Akron Law Review

This is an examination of the workings of section 2-207 of the Uniform Commercial Code in the form contract between merchants. More specifically, the literal interpretation of the Section is to be investigated as to its effect on the practical formation of the sales contract A basic assumption of this comment is that the terms of the Code which may, under section 2-207 be "read into" a contract, are repugnant to the seller. This, I think, is obvious. It should, however, be kept in mind that, between merchants, both parties may be assumed to be "big boys." Therefore, the problem …

Default Proceedings Under Article 9: Problems, Solutions, And Lessons To Be Learned, Leonard Lakin

Akron Law Review

This article will explore in detail the relevant Code provisions relating to default proceedings and the impact of the significant court decisions which have interpreted this most important area of secured transactions as well as the changes made by -the 1972 Official Text of Article 9, which has already been adopted in ten states as of this writing.

An Analysis Of Warranty Claims Instituted By Non-Privity Plaintiffs In Jurisdictions That Have Adopted Uniform Commerical Code Section 2-318 (Alternatives B & C), William L. Stallworth

Akron Law Review

The purpose of this Article is to discuss case law developments under Uniform Commercial Code Section 2-318 Alternatives B3 and C.4. The Article will also propose a solution to various problems that arise under section 2-318 in the the law of defenses. In order to follow this discussion, one must understand the law of warranty claims and defenses under Article 2 of the Uniform Commercial Code (henceforth, the "Code" or the "UCC").

The U.C.C. Section 4-205(2) Payment/Deposit Warranty: Allow A Drawer To Hold A Depositary Bank Liable For Collecting An Item With A Forged Indorsement, Richard Scislowski

Akron Law Review

As written, the new section 4-205(2) Payment/Deposit Warranty may provide a new theory upon which to hold a depositary bank liable for handling a stolen check for the benefit of a thief. This Comment will propose that the word "customer" as used in U.C.C. section 4-205 should not be read to include a thief that steals a check, forges an indorsement, and transfers the item to a depositary bank for collection. Such a reading would allow the drawer of the stolen check to sue the depositary bank for breach of warranty. This Comment will first describe the existing recourses available …

Good Faith: A New Look At An Old Doctrine, Robert S. Adler, Richard A. Mann

Akron Law Review

In this article we sketch the basic contours of the contractual policing devices that apply to special relationships and to arm's length transactions. We then explicate in greater detail the duty of good faith under general contract law and the Uniform Commercial Code. Finally, we explore some strategies for shortening arm's length transactions through consensual extensions of the duty of good faith.

Too Clever By Half: Reflections On Perception, Legitimacy, And Choice Of Law Under Revised Article 1 Of The Uniform Commercial Code, Mark Edwin Burge

Mark Edwin Burge

The overwhelmingly successful 2001 rewrite of Article 1 of the Uniform Commercial Code was accompanied by an overwhelming failure: proposed section 1-301 on contractual choice of law. As originally sent to the states, section 1-301 would have allowed non-consumer parties to a contract to select a governing law that bore no relation to their transaction. Proponents justifiably contended that such autonomy was consistent with emerging international norms and with the nature of contracts creating voluntary private obligations. Despite such arguments, the original version of section 1-301 was resoundingly rejected, gaining zero adoptions by the states before its withdrawal in 2008. …

Too Clever By Half: Reflections On Perception, Legitimacy, And Choice Of Law Under Revised Article 1 Of The Uniform Commercial Code, Mark Edwin Burge

Mark Edwin Burge

The overwhelmingly successful 2001 rewrite of Article 1 of the Uniform Commercial Code was accompanied by an overwhelming failure: proposed section 1-301 on contractual choice of law. As originally sent to the states, section 1-301 would have allowed non-consumer parties to a contract to select a governing law that bore no relation to their transaction. Proponents justifiably contended that such autonomy was consistent with emerging international norms and with the nature of contracts creating voluntary private obligations. Despite such arguments, the original version of section 1-301 was resoundingly rejected, gaining zero adoptions by the states before its withdrawal in 2008. …

Unconscionability As A Contract Policing Device For The Elder Client: How Useful Is It?, Robyn L. Meadows

Akron Law Review

An elder law symposium provides an opportunity to consider ways that the various areas of the law provide protection for the older client. This raises the question of whether the Uniform Commercial Code (hereafter U.C.C. or the Code) protects the unique interests of the older consumer. Such consideration naturally leads to the contract policing device specifically included in the Code—unconscionability. The doctrine of unconscionability provides a way for courts to police grossly unfair contracts and contract provisions. It is found not only in the U.C.C. but also in the tenets of general contract law. However, its application is not limited …

Too Clever By Half: Reflections On Perception, Legitimacy, And Choice Of Law Under Revised Article 1 Of The Uniform Commercial Code, Mark Edwin Burge

William & Mary Business Law Review

The overwhelmingly successful 2001 rewrite of Article 1 of the Uniform Commercial Code was accompanied by an overwhelming failure: proposed section 1-301 on contractual choice of law. As originally sent to the states, section 1-301 would have allowed non-consumer parties to a contract to select a governing law that bore no relation to their transaction. Proponents justifiably contended that such autonomy was consistent with emerging international norms and with the nature of contracts creating voluntary private obligations. Despite such arguments, the original version of section 1-301 was resoundingly rejected, gaining zero adoptions by the states before its withdrawal in 2008. …

Delaware’S Implied Contractual Covenant Of Good Faith And “Sibling Rivalry” Among Equity Holders, Daniel S. Kleinberger

Faculty Scholarship

An obligation of good faith and fair dealing is implied in every common law contract and is codified in the Uniform Commercial Code (“U.C.C”). The terminology differs: Some jurisdictions refer to an “implied covenant;” others to an “implied contractual obligation;” still others to an “implied duty.” But whatever the label, the concept is understood by the vast majority of U.S. lawyers as a matter of commercial rather than entity law. And, to the vast majority of corporate lawyers, “good faith” does not mean contract law but rather conjures up an important aspect of a corporate director’s duty of loyalty.

Nonetheless, …

Breaking “Too Darn Bad”: Restoring The Balance Between Freedom Of Contract And Consumer Protection, Stephanie Drotar

NYLS Law Review

No abstract provided.

Contract Resurrected! Contract Formation: Common Law – Ucc – Cisg, Sarah Howard Jenkins

Faculty Scholarship

No abstract provided.

Contract Resurrected! Contract Formation: Common Law ~ Ucc ~ Cisg, Sarah H. Jenkins

Sarah H Jenkins

Contract Resurrected!

After the promulgation of the Restatement (Second) of the Law of Contracts with its expanded theory of Section 90, quasi-contract and promissory estoppel were hailed as the only theories needed for recovery. Contract was dead! This was the dominant prospective regarding the continued efficacy of contract and contract law. The contract theorists were wrong. The mushrooming global interdependency among nations demands legal rules and principles to govern exchanges between businesses and reaffirms the value of contract as a juridical tool. The United Nations Convention on Contracts for the International Sale of Goods as a recent promulgation reaffirms the …

Some Economic Insights Into Application Of Payments Doctrine: Walker-Thomas Revisited, James W. Bowers

Chicago-Kent Law Review

Contractual relations frequently involve multiple transactions, which might give rise either to a single aggregate debt, or else to multiple differing obligations. This conflict creates the application of payments problem. Unsurprisingly, the common law developed long-standing rules for the application of partial payments to multiple, but remedially distinguishable debts. The subject is made timely again by the recent enactments of the 1999 revision of Article 9 of the Uniform Commercial Code. Article 9 instructs courts how to solve the application of payments problem when some partial payments might satisfy “purchase money” security interests. The enactments repealed the common law application …

Reclaim This! Getting Credit Seller Rights In Bankruptcy Right, Lawrence Ponoroff

University of Richmond Law Review

No abstract provided.