The Statute of Limitations for Breach of a Sales Contract

question 52

Multiple Choice

The statute of limitations for breach of a sales contract:

• A) may be reduced between merchants to one year.
• B) may be expanded by the buyer and the seller to six years.
• C) begins to run from the signing of the contract.
• D) always requires a notice to the seller to activate the statute.

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Definitions:

Conditional Contracts

Agreements that become enforceable only upon the occurrence of specified conditions.

Sale-On-Approval Contracts

Contracts that allow buyers to take possession of goods before deciding whether to complete the purchase, often used in sales where inspection is necessary.

Condition-Or-Sale Contracts

Agreements that stipulate the sale of goods is dependent on certain conditions being met, often used to protect the interests of the seller.

UCC

The Uniform Commercial Code, a set of laws that govern commercial transactions in the United States.