Go To Top capitol dome
Michigan Legislature
Michigan Compiled Laws Complete Through PA 123 of 2017
House: Adjourned until Thursday, October 19, 2017 12:00:00 PM
Senate: Adjourned until Thursday, October 19, 2017 10:00:00 AM

Michigan Legislature

Main Content

Section 440.2106

UNIFORM COMMERCIAL CODE (EXCERPT)
Act 174 of 1962


440.2106 Contract, agreement, contract for sale, sale, present sale; definitions of certain terms.

Sec. 2106.

(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 2401). 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.


History: 1962, Act 174, Eff. Jan. 1, 1964


© 2017 Legislative Council, State of Michigan

up icon