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The Uniform Commercial Code, also known as the UCC, is a set of laws that govern commercial transactions in the United States. Although they are not federal law, every state has adopted the regulations to some degree. It’s helpful to know about the various sections in this system - including UCC 2-714. What will you find in this area?
UCC 2-714 deals with the Buyer’s Damages for Breach in Regard to Accepted Goods. It covers compensation for the buyer in cases of breach and the various circumstances surrounding this potentially broken contract.
If you’re curious about UCC 2-714 and want to know more, you’ve come to the right place. No matter who you are, it’s helpful to understand the intricacies of various systems in the United States, especially those operating across state lines. Read on to learn more about UCC 2-714, the laws before and after this one, and other valuable information.
What is UCC 2-714?
There are several sections in Article 2 of the Uniform Commercial Code, and one of those is UCC 2-714. This area deals with the Buyer’s Damages for Breach in Regard to Accepted Goods, a valuable asset to the buying party in any contracted deal working with tangible goods.
Here are the official portions of UCC 2-714 according to Cornell University:
- (1) Where the buyer has accepted goods and given notification (subsection (3) of Section 2-607) he may recover as damages for any non-conformity of tender the loss resulting in the ordinary course of events from the seller's breach as determined in any manner which is reasonable.
- (2) The measure of damages for breach of warranty is the difference at the time and place of acceptance between the value of the goods accepted and the value they would have had if they had been as warranted, unless special circumstances show proximate damages of a different amount.
- (3)In a proper case any incidental and consequential damages under the next section may also be recovered.
It’s an intricate portion of the Uniform Commercial Code.
Essentially, UCC 2-714 deals with the buyer’s damages if they experience a breach dealing with the goods accepted in the situation. This section permits the buyer to garner damages based on the break and considers the measure of the damages pushed forward.
What Laws Precede and Follow UCC 2-714?
It’s always helpful to know the laws before and after a stated section to determine the context surrounding the provided information. When examining Uniform Commercial Code 2-714, you will find it preceded by UCC 2-713 and followed shortly after by UCC 2-715.
UCC 2-713 deals with the Buyer’s Damages for Non-Delivery or Repudiation. It determines what the buyer might receive if they do not receive the product or encounter issues.
UCC 2-715 deals with the Buyer’s Incidental and Consequential Damages. Under this law, you will find specifications surrounding any scenario where there is a seller breach from incidental or consequential damages.
This context ensures the importance of UCC 2-714. It’s a practical addition to the valuable laws.
What Is Article 2 of the UCC?
Article 2 of the Uniform Commercial Code deals with the transaction of goods. Under the UCC, goods are physical products that can be picked up and moved from one place to another. They are tangible and will be felt by the buyer, seller, and other parties involved.
Intellectual property and anything else based in the intangible realm does not fall under Article 2. It must be something like a machine part, food, airplane parts, and more to meet these specifications.
Why Is Article 2 Critical?
Although it might seem like a general outline for various business transactions in the United States, there is extensive value to Article 2. It is a seal for any meeting and contact between the buyer and seller.
Article 2 forms binding agreements between sophisticated groups of people that would typically not be able to be enforceable once all is said and done. It’s a way to keep track of commercial endeavors across state lines, all thanks to the UCC Article 2.
Reference Legal Explanations
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"What is UCC 2-714?". Legal Explanations. Accessed on March 2, 2024. https://legal-explanations.com/blog/what-is-ucc-2-714/.
"What is UCC 2-714?". Legal Explanations, https://legal-explanations.com/blog/what-is-ucc-2-714/. Accessed 2 March, 2024
What is UCC 2-714?. Legal Explanations. Retrieved from https://legal-explanations.com/blog/what-is-ucc-2-714/.