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{ Sales Contracts Sales Contracts Derreon Underwood.

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Presentation on theme: "{ Sales Contracts Sales Contracts Derreon Underwood."— Presentation transcript:

1 { Sales Contracts Sales Contracts Derreon Underwood

2 Do Now At the Dan-Dee Discount Department Store, Jack and Jean Medina signed a contract to buy a clothes washer and dryer set. The Dan-Dee salesperson explained that although the set on display was not in stock, “We will deliver and install it within two weeks.” The Medinas left their car in the store’s automobile service department to have the engine’s speed adjusted and to have squeaks eliminated. The charge for labor was $45.There was no charge for parts or supplies. The service attendant recommended replacing the car’s tires and the Medinas agreed. The cost of the tires was $300, plus $25 for balancing and installation. The Medinas also bought a new battery for $59. It was installed free of charge. Were all of these agreements sales?

3 Answer No, the work on the car engine and the doors was a contract for services not a sale. The goods supplied were incidental. The transfer of ownership of the tires and battery was a sale. The agreement of the washer and dryer was a contract to sell.

4 Vocab pt. 1 Sale – contract in which ownership of goods transfers immediately from seller to buyer for a price. Contract to sell – if the transfer of ownership is to take place in the future. Price – is the consideration for a sale or contract to sell goods. Barter – when parties exchange goods for goods Goods – tangible and movable personal property Payment – occurs when the buyer delivers the agreed price and the seller accepts it. Vendor – the seller in an agreement

5 Vocab pt. 2 Vendee – the buyer in an agreement Bill of sale – receipt that serves as written evidence of the transfer of ownership of goods Unconscionable – grossly unfair and oppressive Contracts of adhesion – one of the parties dictates all the important terms Merchant – is a seller who deals regularly in a particular kind of goods Casual Sellers – someone who sells on occasion

6 Sales - Sales of goods and contracts to sell goods are governed by a combination of basic contract law. - Transfers of ownership of other types of property such as intangible personal property and real estate are governed by different laws. - The Uniform Commercial Code (UCC) governs sales of goods and contracts to sell goods in the future. - Under the UCC, a sales contract may be made in any manner sufficient to show agreement. - The resulting contract is acceptable if the parties recognize the existence of a contract

7 Ownership - Any rise of value belongs to the current owner and may be used by the owner however they please even squandered or destroyed. - When goods are destroyed or damaged without legal fault of a person the owner loses unless covered by insurance. - Both benefits and burdens go with ownership of goods. The owner may be taxed in proportion to what is owned and the freedom to use one’s property may be limited by government regulations. - Merchants are held at a higher standard than casual sellers by the UCC.

8 Special Rules - Sales of goods for $500 or more must be evidenced by a writing to be enforceable in court. In good business practice both parties sign a written sales contract and each party gets a copy. - Not all terms of a sales contract have to be in writing to satisfy the statue of frauds. - The writing must specify at least a quantity of goods involved and must be signed by the party who is sued or by that party’s agent. - A variation of the statue of frauds can occur between merchants.

9 Closing Questions 1. Under the statue of frauds, sales of goods valued at _______ or more need to be evidenced by a writing to be enforceable in court. 2. A bill of sale provides _______.

10 Answers 1. $500 2. Useful evidence of the transfer of title to goods.

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