What is a contract of sale?
A contract of sale is an agreement between two parties, a buyer and a seller, in which one party agrees to transfer ownership of a good or service to the other party in exchange for payment. In North Carolina, contract of sale law under the Uniform Commercial Code (UCC) states that a contract of sale is an agreement in which the buyer agrees to pay a certain price for a good or a service that the seller has promised to deliver. The UCC states that for a contract of sale to be legally valid, it must be in writing, be signed by both parties, and include all essential terms such as the description of the goods or service, the agreed-upon price, any delivery terms, and the date of the transaction. The agreement must also include a clause that states that the seller’s transfer of title to the goods happens only after payment in full has been made. Contract of sale law in North Carolina also includes certain protections for buyers, such as express warranties and implied warranties of merchantability. Express warranties are statements made by the seller that guarantee that the good or service will be of a certain quality. Implied warranties of merchantability refer to a seller’s guarantee that the goods will meet the ordinary standards for the type of product that is being sold. Both buyer and seller should keep a copy of the contract of sale for their own records. This document is proof of the agreement and can be used to settle any future disputes.
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