§ 25-2-106. Definitions: "Contract"; "agreement"; "contract for sale"; "sale"; "present sale"; "layaway contract"; "conforming" to contract; "termination"; "cancellation." - North Carolina Statutes

§25‑2‑106.  Definitions: "Contract";"agreement"; "contract for sale"; "sale";"present sale"; "layaway contract"; "conforming"to contract; "termination"; "cancellation."

(1)        In this articleunless the context otherwise requires "contract" and "agreement"are limited to those relating to the present or future sale of goods, includinglayaway contracts.  "Contract for sale" includes both a present saleof goods and a contract to sell goods at a future time.  A "sale"consists in the passing of title from the seller to the buyer for a price (G.S.25‑2‑401).  A "present sale" means a sale which isaccomplished by the making of the contract.  A "layaway contract"means any contract for the sale of goods in which the seller agrees with thepurchaser, in consideration for the purchaser's payment of a deposit, downpayment, or similar initial payment, to hold identified goods for futuredelivery upon the purchaser's payment of a specified additional amount, whetherin installments or otherwise.

(2)        Goods or conductincluding any part of a performance are "conforming" or conform tothe contract when they are in accordance with the obligations under thecontract.

(3)        "Termination"occurs when either party pursuant to a power created by agreement or law putsan end to the contract otherwise than for its breach.  On"termination" all obligations which are still executory on both sidesare discharged but any right based on prior breach or performance survives.

(4)        "Cancellation"occurs when either party puts an end to the contract for breach by the otherand its effect is the same as that of "termination" except that thecancelling party also retains any remedy for breach of the whole contract orany unperformed balance. (1965, c. 700, s. 1; 1967, c. 24, s. 6; 1993, c. 340,s. 1.)