The UCC presents the most comprehensive and the most streamlined set of laws governing the conduct of business. I have had to use the UCC several times in the course of my professional life and also as a tool for personal development. The UCC offers a set of rules which are dealt with in seven articles of the code; general provisions, sales, leases, negotiable instruments, bank deposit, funds transfers, letters of credit, bulk transfers and bulk sales, warehousing, investment securities, and secured transactions.
In the past year, I learnt a lot both professionally and personally when I had to apply the provisions of the Uniform Commercial Code in a transaction. As a contract specialist, I deal with the leasing of equipment that is used for training. I am also involved in leasing of transportation and related services such as double-wide trailers, heated and cooled sleeping tents, light towers with generators, cell phones, refrigerated containers among a host of other services and goods.
Conducting this business, I have had to apply several of the provisions of the commercial code in bargaining for deals which has made the conduct of my business smoother. My business generally involves the leasing of the mentioned above goods and services. I have found that almost all of the aspects with regard to how I am to deal with my clientele and the government authorities are covered by the Uniform Commercial Code. The leasing business has a lot of pitfalls and if the rights and duties of all the parties are not adhered to, huge losses may result.
I once had a chance to apply section 2A-201 Statute of Frauds in a lease agreement. There was an informal agreement between a certain merchant and me for the supply of double-wide trailers. Since there had been made no formal lease contract and the agreement did not exceed $1000, I rescinded it and asked for better terms given that I had found new clients willing to pay more. I made use of the provisions of the Uniform Commercial Code to ask for better terms from the merchants and was able to convince them to offer me what I wanted.
Another time I had entered into an agreement with some merchant for the supply of lighted towers with generators as accessories. In this instance, I had the opportunity to apply section 2A-109 of the Uniform Commercial Code in order to protect my interests which I believed were threatened. Section 2A-109 of the code offers any party of the lease agreement an option of accelerating the performance of the agreement whenever they feel that their interests are threatened. Soon after entering into a contract with the merchant for the supply of the lighted towers, it came to my knowledge that his company was in the process of filing for bankruptcy. I had a strong conviction that the prospect of full performance of the contract was impaired by this action and hence demanded that I get bank guarantees before further engagement. I was able to get this since I was bale to prove that my interests were indeed threatened and as such I was justified to claim for more collateral.
I applied the Uniform Commercial Code part 2A-205 in a certain agreement I had entered into with a certain merchant for the lease of cell phones and related accessories. The lease agreement stated that the merchant was to claim the goods at a later unspecified date. Section 2A-209 makes an offer that is signed by both parties to be irrevocable even in the instance of the lack of consideration. While this may be so, I terminated the contract upon the expiry of three months on reliance upon the provision which states that the lease contract may lapse upon the expiry of reasonable time or a period exceeding three months. Though the merchant had paid some money, I deemed that holding the contract open would expose the business to potential losses since the goods are tied up in a contract which did not have a specific performance date.