What subjects the UCC does not cover?
Asked by: Ellen Moore | Last update: August 27, 2025Score: 4.3/5 (72 votes)
Real Estate Contracts. The UCC doesn't apply to commercial real estate purchases or leases. Another way to put it: The UCC covers personal property, not real property. To find laws for real estate contracts, you'll need to look to other state laws, regulations, and court cases that specifically relate to real property.
What does the UCC not cover?
There are two large categories of transactions where the UCC does not apply: services and real estate transactions. The idea is that services and real estate transactions have a lot more nuances than could be covered in the UCC and are better handled by the common law approach.
Which of the following contract subject matters would not be covered under the UCC?
The UCC does not apply to: The sale of real estate. Security interests or liens in real estate. Service agreements or employment contracts.
Which item is not covered by the Uniform Commercial Code?
Uniform Commercial Code Article 2 covers the sale of goods, excluding real estate and service contracts. Article 2a covers leases of personal property.
What are the limitations of the UCC?
The statute of limitations is also different. Under the UCC, the statute of limitations is four years, but it is usually four to six years under the common law of contracts. Additionally, whether or not someone can collect punitive damages is also affected by which body of law governs.
Uniform Commercial Code - NOT a Key to Debt Defense - Myths and Facts about the UCC
Which of the following contracts would not fall under the UCC?
The UCC applies to the sale of goods. But it doesn't apply to the sale of real estate or to the sale of services.
What are the exceptions to the UCC Article 2 Statute of Frauds?
These exceptions are admission, performance, and promissory estoppel. Admission means that an oral contract can be enforced without meeting the requirements of a statute of frauds if the other party admits under oath that the oral contract was made. Performance can mean full performance or partial performance.
What transactions fall under UCC?
Contract law is governed by the common law and the Uniform Commercial Code "UCC." Common law governs contractual transactions with real estate, services, insurance, intangible assets and employment. UCC governs contractual transactions with goods and tangible objects (such as a purchase of a car).
Does the UCC apply to mortgages of real property?
Generally, Articles 3 and 9 of the UCC are relevant to mortgage loans. If the note is considered a negotiable instrument, Article 3 provides rules governing both the obligations of parties to a note as well as enforcement of those obligations.
Which of the following subjects is covered under the Uniform Commercial Code?
Note that the UCC is applicable in sales, leases, negotiable instruments, bank deposits, funds transfers, letters of credit, bulk transfers and bulk sales, warehouse receipts, bills of lading and other documents of title, investment securities, and secured transactions of commercial transactions.
What falls under UCC?
The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States. It is not a federal law, but a uniformly adopted state law. Uniformity of law is essential in this area for the interstate transaction of business.
Is a house considered a good under UCC?
"Goods" in this context means moveable property. Property is not moveable if attached to the land, like a house. Other names for goods are chattel or personal property. Real estate, fixtures to real estate, and securities are not considered goods for Article 2 of the UCC.
What state does not follow the UCC?
While largely successful at achieving this ambitious goal, some U.S. jurisdictions (e.g., Louisiana and Puerto Rico) have not adopted all of the articles contained in the UCC, while other U.S. jurisdictions (e.g., American Samoa) have not adopted any articles in the UCC.
What is the UCC for dummies?
The UCC is a set of laws concerning commercial transactions, such as the sale of goods. It also covers secured transactions, where a lender gains the right to foreclose on a borrower's collateral should the borrower default on the loan. This is also called a security interest.
Which of the following topics is not regulated by the Uniform Commercial Code?
The topic that is not regulated by the Uniform Commercial Code (UCC) is state taxes. The UCC is a set of laws that standardizes commercial transactions and provides a framework for businesses to conduct their activities.
What is cover under the UCC?
PURPOSE OF COVER
In other words, after a breach by the seller, a buyer is permitted to go out and purchase commercially reasonable, substitute (but not necessarily identical) goods (known as “cover”).
Can I sell my house with a UCC lien?
UCC liens rarely jeopardize a deal; however, UCC liens can easily delay the closing of a deal and create further issues in the deal process. Possible issues are cash flow issues (from pushing out the closing date), legal contracts with lenders, possible delays in products or services for customers, etc.
What are the three types of contracts that fall under the UCC?
The UCC is a set of rules that applies to commercial transactions, sales and financial contracts.
Why would a lender file a UCC?
Uniform Commercial Code (UCC) filings allow creditors to notify other creditors about a debtor's assets used as collateral for a secured transaction. UCC liens filed with Secretary of State offices act as a public notice by the "creditor" of the creditor's interest in the property.
What is UCC in real estate?
A UCC (Uniform Commercial Code) financing statement is a mortgage or security agreement that uses personal property as collateral. These agreements are recorded in the county if real property is affected.
What is a payment intangible under the UCC?
The Uniform Commercial Code defines a payment intangible as “a general intangible under which the ac- count debtor's principal obligation is a monetary obligation.” A general intan- gible “means any personal property, including things in action, other than accounts, chattel paper, commercial tort claims, deposit ...
Do leases fall under the UCC?
secured transactions, and the lessor and lessee's performance obligations under the UCC. The leases covered by the Uniform Commercial Code (UCC) are for personal property, or what the Code calls "goods." These goods include: machinery.
What is not subject to the Statute of Frauds?
Executed Contracts
An executed contract is a contract in which all parties have fully fulfilled their obligations. A fully executed oral contract is not affected by the Statute of Frauds and cannot be challenged because it is not in writing.
What is promissory estoppel?
Within contract law , promissory estoppel refers to the doctrine that a party may recover on the basis of a promise made when the party's reliance on that promise was reasonable , and the party attempting to recover detrimentally relied on the promise.
What are the 4 conditions for a negotiable instrument to be valid under the UCC?
An instrument to be negotiable must conform to the following requirements: (1) It must be in writing and signed by the maker or drawer; (2) Must contain an unconditional promise or order to pay a sum certain in money; (3) Must be payable on demand, or at a fixed or determinable future time; (4) Must be payable to order ...