Commercial codes govern business and commercial transactions in USA and ratified most of the States. The objective of the Code has been stated below:-
“AN ACT to enact the uniform commercial code, relating to certain commercial transactions in or regarding personal property and contracts and other documents concerning them, including sales, commercial paper, bank deposits and collections, letters of credit, bulk transfers, warehouse receipts, bills of lading, other documents of title, investment securities, leases, and secured transactions, including certain sales of accounts, chattel paper and contract rights; to provide for public notice to third parties in certain circumstances; to regulate procedure, evidence and damages in certain court actions involving such transactions, contracts or documents; to make uniform the law with respect thereto; to make an appropriation; to provide penalties; and to repeal certain acts and parts of acts”.
Structure of the Law under UCC
Following transactions have been collected in the code within a specific Article( 1 to 9)
Article – General Provisions
- Sales (Amended Article 2);
- Leases (Amended Article 2A);
- Negotiable Instruments, previously known as Commercial Paper (Revised Article 3);
- Bank Deposits and Collections (Amended Article 4);
- Funds Transfers (Article 4A);
- Letters of Credit (Revised Article 5);
- Bulk Sales, previously known as Bulk Transfers (Revised Article 6);
- Documents of Title (Revised Article 7);
- Investment Securities (Revised Article 8); and
- Secured Transactions (Revised Article 9).
