§ 25-1-103. Construction of this Chapter to promote its purposes and policies; applicability of supplemental principles of law. - North Carolina Statutes

§ 25‑1‑103. Construction of this Chapter to promote its purposes and policies;applicability of supplemental principles of law.

(a)        This Chapter shallbe liberally construed and applied to promote its underlying purposes andpolicies, which are:

(1)        To simplify,clarify, and modernize the law governing commercial transactions;

(2)        To permit thecontinued expansion of commercial practices through custom, usage, andagreement of the parties; and

(3)        To make uniform thelaw among the various jurisdictions.

(b)        Unless displaced bythe particular provisions of this Chapter, the principles of law and equity,including the law merchant and the law relative to capacity to contract,principal and agent, estoppel, fraud, misrepresentation, duress, coercion,mistake, bankruptcy, and other validating or invalidating cause supplement itsprovisions. (1917,c. 37, s. 56; C.S., s. 4039; 1941, c. 353, s. 18; G.S., s. 55‑98; 1955,c. 1371, s. 2; 1965, c. 700, s. 1; 2006‑112, s. 1.)