Written by attorneys · grounded in primary & secondary sources — see below
A contract or arrangement involving the sale or transfer of tangible movable items. The concept determines the applicability of sales law to the goods component even when services or other elements are also present.
Sources & Authorities
How it applies
Common Examples
2
Hybrid Server Purchase Dispute
Thomas Thompson contracted with TechVista Solutions for an analytics platform plus dedicated servers and network switches. The servers arrived late and incomplete. Thomas sued over the hardware defects. Because the servers are tangible movable items, sales rules govern the hardware portion of the deal while other law addresses the platform services.
Distribution Agreement Assignment
Sally Beauty acquired a distribution agreement originally between Nexxus and a prior distributor. Nexxus refused to perform claiming the agreement was personal. The underlying arrangement concerned the ongoing sale of hair care products which are tangible movable items. Sales law therefore supplied the governing framework for determining assignability.
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Hornbooks
Study Supplements
Sally Beauty Co. v. Nexxus Products Co.801 F.2d 1001 (1986)
Common questions
Frequently Asked
3
Does Article 2 apply to a contract that mixes goods with services?+
Yes. When a transaction includes both goods and non-goods elements, sales rules govern the goods portion even if services predominate overall. The goods-specific provisions apply to the tangible movable items while other law governs the remainder.
Supporting sources
What happens when goods are only a minor part of a larger hybrid deal?+
Sales rules still reach the goods component. The statute covers transactions in goods without requiring that goods predominate. Provisions tied to the sale of goods operate on that slice while transaction-wide rules may not apply to the entire agreement.
Supporting sources
How does a court decide whether custom manufactured items qualify?+
The items qualify once they become movable and are identified to the contract. Even if manufacture is never completed because of repudiation, sales law can still apply because the statute expressly reaches contracts for the sale of goods.
801 F.2d 1001 (1986)Contracts
…UCC § 2-210(1), Tex.Bus & Com.Code Ann. § 2-210(a) (Vernon 1968). III. The UCC codifies the law of contracts applicable to “transactions in goods.” UCC § 2-102, Tex.Bus. & Com. Code Ann. § 2-102 (Vernon 1968). Texas applies the “dominant factor” test to determine whether the UCC applies to a given contract or transaction: was the…
ContractsFormation of contracts · Mutual assent (including offer and acceptance, and unilateral, bilateral, and implied-in-fact contracts)UBEIntermediate