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TABLE OF CONTENTS

PART 1 GENERAL PROVISIONS 1

SECTION 2-101. SHORT TITLE 1

SECTION 2-102. DEFINITIONS 1

SECTION 2-103. MANIFESTING ASSENT; OPPORTUNITY TO REVIEW 7

SECTION 2-104. SCOPE 9

SECTION 2-105. TRANSACTIONS SUBJECT TO OTHER LAW 11

SECTION 2-106. UNCONSCIONABLE CONTRACT OR TERM. 13

SECTION 2-107. INTERESTS AND PART INTERESTS IN GOODS 14

SECTION 2-108. GOODS TO BE SEVERED FROM REAL PROPERTY; RECORDING 15

SECTION 2-109. EFFECT OF AGREEMENT 16

PART 2 FORMATION, TERMS, AND READJUSTMENT OF CONTRACT 17

SECTION 2-201. NO FORMAL REQUIREMENTS 17

SECTION 2-202. PAROL OR EXTRINSIC EVIDENCE 18

SECTION 2-203. FORMATION IN GENERAL 21

SECTION 2-204. FIRM OFFERS 23

SECTION 2-205. OFFER AND ACCEPTANCE IN FORMATION OF CONTRACT 23

SECTION 2-206. STANDARD FORM RECORDS 26

SECTION 2-207. EFFECT OF VARYING TERMS 29

SECTION 2-208. ELECTRONIC TRANSACTIONS: FORMATION 37

SECTION 2-209. COURSE OF PERFORMANCE OR PRACTICAL CONSTRUCTION 37

SECTION 2-210. MODIFICATION, RESCISSION, AND WAIVER 38

SECTION 2-211. ELECTRONIC MESSAGES; ATTRIBUTION 41

SECTION 2-212. INTERMEDIARIES IN ELECTRONIC MESSAGES 41

PART 3 GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT 41

SECTION 2-301. HOW CONTRACT PRICE PAYABLE 41

SECTION 2-302. TRANSFER AT SINGLE TIME 42

SECTION 2-303. OPEN PRICE TERM 43

SECTION 2-304. OUTPUT, REQUIREMENTS, AND EXCLUSIVE DEALING 44

SECTION 2-305. ABSENCE OF SPECIFIED PLACE FOR DELIVERY 47

SECTION 2-306. TIME FOR PERFORMANCE NOT SPECIFIED 47

SECTION 2-307. OPTIONS AND COOPERATION RESPECTING PERFORMANCE 48

SECTION 2-308. FAILURE TO PAY BY AGREED CREDIT. 49

SECTION 2-309. SHIPMENT TERMS; SOURCE OF MEANING 49

SECTION 2-310. TERMINATION; SURVIVAL OF OBLIGATIONS 50

SECTION 2-311. TERMINATION; NOTIFICATION 51

SECTION 2-312. SALE BY AUCTION 52

PART 4. WARRANTIES 56

SECTION 2-401. DEFINITIONS 56

SECTION 2-402. WARRANTY OF TITLE AND AGAINST INFRINGEMENT; BUYER'S OBLIGATION AGAINST INFRINGEMENT 57

SECTION 2-403. EXPRESS WARRANTIES: GENERAL 60

SECTION 2-404. EXPRESS WARRANTIES OTHER THAN AS PART OF AGREEMENTS OF SALE 60

SUBSECTION 2-405. EXPRESS WARRANTIES ARISING FROM COMMUNICATIONS TO THE PUBLIC 61

SECTION 2-406. IMPLIED WARRANTY OF MERCHANTABILITY; USAGE OF TRADE 64

SECTION 2-407. IMPLIED WARRANTY OF FITNESS FOR PARTICULAR PURPOSE 66

SECTION 2-408. DISCLAIMER OR MODIFICATION OF WARRANTIES 66

SECTION 2-409. CUMULATION AND CONFLICT OF WARRANTIES 69

SECTION 2-410. EXTENSION OF EXPRESS OR IMPLIED WARRANTIES 70

[SECTION 2-411. INJURY TO PERSON OR PROPERTY RESULTING FROM BREACH OF WARRANTY] 74

PART 5 TRANSFERS, IDENTIFICATION, CREDITORS, AND GOOD-FAITH PURCHASERS 76

SECTION 2-501. PASSING OF TITLE; RESERVATION FOR SECURITY 76

SECTION 2-502. INSURABLE INTEREST IN GOODS; MANNER OF IDENTIFICATION OF GOODS 78

SECTION 2-503. ASSIGNMENT OF RIGHTS; DELEGATION OF DUTIES 80

SECTION 2-504. POWER TO TRANSFER; GOOD-FAITH PURCHASE OF GOODS 83

SECTION 2-505. RIGHTS OF SELLER'S CREDITORS AGAINST GOODS SOLD 85

SECTION 2-506. SALE ON APPROVAL AND SALE OR RETURN; SPECIAL INCIDENTS 87

PART 6 PERFORMANCE 89

SECTION 2-601. GENERAL OBLIGATIONS; SUBSTANTIAL PERFORMANCE 89

SECTION 2-602. SERVICE AGREEMENT RELATING TO GOODS SOLD 90

SECTION 2-603. WAIVER OF OBJECTION 92

SECTION 2-604. MANNER OF SELLER'S TENDER OF DELIVERY 93

SECTION 2-605. SHIPMENT BY SELLER 96

SECTION 2-606. SELLER'S SHIPMENT UNDER RESERVATION 98

SECTION 2-607. RIGHTS OF FINANCING AGENCY 99

SECTION 2-608. EFFECT OF SELLER'S TENDER; DELIVERY ON CONDITION 99

SECTION 2-609. TENDER OF PAYMENT BY BUYER; PAYMENT BY CHECK 100

SECTION 2-610. PAYMENT BY BUYER BEFORE INSPECTION 101

SECTION 2-611. BUYER'S RIGHT TO INSPECT GOODS 102

SECTION 2-612. WHEN DOCUMENTS DELIVERABLE ON ACCEPTANCE OR PAYMENT 103

SECTION 2-613. OPEN TIME FOR PAYMENT OR RUNNING OF CREDIT; AUTHORITY TO SHIP UNDER RESERVATION 104

SECTION 2-614. RISK OF LOSS 105

PART 7 BREACH, REPUDIATION, AND EXCUSE 109

SECTION 2-701. BREACH OF CONTRACT GENERALLY 109

SECTION 2-702. MATERIAL BREACH OF CONTRACT 110

SECTION 2-703. BUYER'S RIGHTS ON NONCONFORMING DELIVERY; RIGHTFUL REJECTION 111

SECTION 2-704. WAIVER OF BUYER'S OBJECTION BY FAILURE TO PARTICULARIZE 113

SECTION 2-705. EFFECT OF RIGHTFUL REJECTION AND JUSTIFIABLE REVOCATION OF ACCEPTANCE 114

SECTION 2-706. MERCHANT BUYER'S DUTIES; BUYER'S OPTIONS AS TO SALVAGE 116

SECTION 2-707. WHAT CONSTITUTES ACCEPTANCE OF GOODS 118

SECTION 2-708. EFFECT OF ACCEPTANCE; NOTICE OF BREACH; BURDEN OF ESTABLISHING BREACH AFTER ACCEPTANCE; NOTICE OF CLAIM OR LITIGATION TO PERSON ANSWERABLE OVER 119

SECTION 2-709. REVOCATION OF ACCEPTANCE 122

SECTION 2-710. CURE 123

SECTION 2-711. INSTALLMENT CONTRACT: BREACH 126

SECTION 2-712. RIGHT TO ADEQUATE ASSURANCE OF PERFORMANCE 127

SECTION 2-713. ANTICIPATORY REPUDIATION 128

SECTION 2-714. RETRACTION OF ANTICIPATORY REPUDIATION 130

SECTION 2-715. CASUALTY TO IDENTIFIED GOODS 131

SECTION 2-716. SUBSTITUTED PERFORMANCE 132

SECTION 2-717. EXCUSE BY FAILURE OF PRESUPPOSED CONDITIONS 133

SECTION 2-718. PROCEDURE ON NOTICE CLAIMING EXCUSE 134

SECTION 2-719. PRESERVING EVIDENCE OF GOODS IN DISPUTE 135

PART 8 REMEDIES [A. IN GENERAL] 136

SECTION 2-801. SUBJECT TO GENERAL LIMITATIONS 136

SECTION 2-802. BREACH OF CONTRACT; PROCEDURES 137

SECTION 2-803. REMEDIES IN GENERAL 137

SECTION 2-804. DAMAGES IN GENERAL 139

SECTION 2-805. INCIDENTAL DAMAGES 140

SECTION 2-806. CONSEQUENTIAL DAMAGES 141

SECTION 2-807. SPECIFIC PERFORMANCE 145

SECTION 2-808. CANCELLATION; EFFECT 147

SECTION 2-809. LIQUIDATION OF DAMAGES; DEPOSITS 149

SECTION 2-810. CONTRACTUAL MODIFICATION OF REMEDY 151

SECTION 2-811. REMEDIES FOR MISREPRESENTATION OR FRAUD 155

SECTION 2-812. PROOF OF MARKET PRICE 156

SECTION 2-813. LIABILITY OF THIRD PARTIES FOR INJURY TO GOODS 157

SECTION 2-814. STATUTE OF LIMITATIONS 158

[B. SELLER'S REMEDIES] 161

SECTION 2-815. SELLER'S REMEDIES IN GENERAL 161

SECTION 2-816. SELLER'S RIGHT TO RECLAIM GOODS AFTER DELIVERY TO BUYER 163

SECTION 2-817. SELLER'S RIGHT TO IDENTIFY GOODS TO CONTRACT NOTWITHSTANDING BREACH OR TO SALVAGE UNFINISHED GOODS 166

SECTION 2-818. SELLER'S REFUSAL TO DELIVER BECAUSE OF BUYER'S INSOLVENCY; STOPPAGE IN TRANSIT OR OTHERWISE 167

SECTION 2-819. SELLER'S RESALE 170

SECTION 2-820. PERSON IN POSITION OF SELLER 173

SECTION 2-821. SELLER'S DAMAGES FOR NONACCEPTANCE, FAILURE TO PAY, OR REPUDIATION 173

SECTION 2-822. ACTION FOR PRICE 178

[C. BUYER'S REMEDIES] 179

SECTION 2-823. BUYER'S REMEDIES IN GENERAL; BUYER'S SECURITY INTEREST IN REJECTED GOODS 179

SECTION 2-824. PREPAYING BUYER'S RIGHT TO GOODS 181

SECTION 2-825. COVER; BUYER'S PURCHASE OF SUBSTITUTE GOODS 183

SECTION 2-826. BUYER'S DAMAGES FOR NONDELIVERY OR REPUDIATION 185

SECTION 2-827. BUYER'S DAMAGES FOR BREACH REGARDING ACCEPTED GOODS 187

SECTION 2-828. DEDUCTION OF DAMAGES FROM PRICE 189