The Uniform Commercial Code (UCC) is one of many acts of contract law set into practice to simplify and protect the sales and transactions conducted by commercial businesses. The code was established to cater to the need of unifying business practices as companies grew, developed, or expanded across the United States.
This part of the contract law was drafted by a series of top scholars who found the need to implement methods of organization for business transactions to run at smooth pace.The UCC code allowed each separate entity that supported a business accountability for there actions.
First established in 1952, some form of the UCC code exists in each state today. The rise of business development in America along with these business being dependent on another business in one form or another is the exact reason why this act was drafted.
A contract Law safeguards conditions of agreements made between businesses protecting companies and providing a sense of insurance to businesses in the event of a bad transaction. The UCC codes primary purpose is to protect all transactions involving personal property. Personal property is identified as being any property that is considered tangible or movable and not the actual “real” property in itself. This can be a number of things including livestock, furniture, clothing, or market goods.
The UCC code in itself is a reference to a series of law practices that should be applied to each state. Once a state chooses to abide by the UCC code, the state implements the code into its state code of statues. From there the state has the option of implementing the UCC code in its entirety or applying parts of the code with specific changes. If a state decides to alter anything in the UCC code the changes need to be specific so it has no chance of interfering with the productivity the code was meant to represent.
Since this code can vary from state to state it is an important practice for businesses to be familiar to how the code applies to certain states of interest before business is initiated. The UCC code protects contracts and transactions in any from of breaching that may take place after a contract is drawn. So many things can go wrong between business transactions after a contract is made. The contract law provides guidelines that indicates clear methods for neutralizing bad business transactions.
The application of the UCC code provides a buffer for all the circumstances a business transaction may face by imposing a good measure of faith for businesses to stand by. Private property is protected in any event from damages, loss, failure to deliver, crop failure or any other case that prevents a transaction from running smoothly.
Those conducting business in various states should be aware of how the UCC code is applied to each state independently. The enforcement of contract law, has helped streamline business transactions as well as decreased the need of legal presence for contacts to be drawn.