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<ul><li><p>i December 2012 </p><p>i </p><p>TITLE 24 </p><p>COMMERCIAL CODE </p><p>TABLE OF CONTENTS </p><p>CHAPTER 24.01 </p><p>General Provisions </p><p>24.0101 Short title; Construction, Application and subject matter or </p><p>the act 1 </p><p>24.0102 Purposes; Rules of construction; Variation by agreement 1 </p><p>24.0103 Supplementary general principles of law applicable 1 </p><p>24.0104 Construction against implicit repeal 1 </p><p>24.0105 Territorial application of the code; Parties power to choose </p><p>applicable law 1 </p><p>24.0106 Remedies to be liberally administered 2 </p><p>24.0107 Waiver or renunciation of claim or right after breach 2 </p><p>24.0108 Severability 2 </p><p>24.0109 Section captions 2 </p><p>24.0110 General definitions and principles of interpretation 2 </p><p>24.0111 Prima facie evidence by third-party documents 6 </p><p>24.0112 Obligation of good faith 6 </p><p>24.0113 Time; Reasonable time; Seasonably 6 </p><p>24.0114 Course of dealing and usage of trade 7 </p><p>24.0115 State of frauds for kinds of personal property not otherwise </p><p> covered 7 </p><p>24.0116 Performance or acceptance under reservation of rights 7 </p><p>24.0117 Option to accelerate at will 7 </p><p>24.0118 Subordinated obligation 8 </p><p>CHAPTER 24.02 </p><p>Sales </p><p>24.0201 Short title; General construct and subject matter 8 </p><p>24.0202 Scope; Certain security and other transactions excluded from </p><p> this article 8 </p><p>24.0203 Definitions and index of definitions 8 </p><p>24.0204 Definitions; Merchant; Between merchants; Financing </p><p> agency 9 </p><p>24.0205 Definitions; Transferability, goods, future goods, lot, </p><p>commercial unit 9 </p><p>24.0206 Definitions; Contract, agreement, contract for sale, sale, </p><p>present sale, conforming to contract, termination, </p><p>Cancellation 10 </p><p>24.0207 Goods to be severed from realty, Recording 10 </p><p>CHAPTER 24.03 </p><p>Form, formation and Readjustment of Contract </p><p>24.0301 Formal requirements; Statute of frauds 11 </p><p>24.0302 Final written expression; Parole or extrinsic evidence 11 </p><p>24.0303 Seals inoperative 11 </p><p>24.0304 Formation in general 11 </p><p>24.0305 Firm offers 12 </p><p>24.0306 Offer and acceptance in formation of contract 12 </p><p>24.0307 Additional Terms in Acceptance or Confirmation 12 </p><p>24.0308 Course of performance or practical construction 12 </p><p>24.0309 Modification, rescission and waiver 13 </p><p>24.0310 Delegation of performance; Assignment of rights 13 </p><p>CHAPTER 24.04 </p></li><li><p>ii December 2012 </p><p>ii </p><p>General Obligation and Construction of Contract </p><p>24.0401 General obligation of parties 13 </p><p>24.0402 Unconscionable contract or clause 13 </p><p>24.0403 Allocation or Division of Risks 14 </p><p>24.0404 Price payable in money, goods, realty or otherwise 14 </p><p>24.0405 Open price term 14 </p><p>24.0406 Output, requirements and exclusive dealings 14 </p><p>24.0407 Delivery in single lot or several lots 14 </p><p>24.0408 Absence of specified place for delivery 15 </p><p>24.0409 Absence of specific time provisions; Notice of termination 15 </p><p>24.0410 Open time for payment or running of credit; Authority to ship </p><p>under reservation 15 </p><p>24.0411 Options and cooperation respecting performance 15 </p><p>24.0412 Warranty of title and against infringement; Buyers obligation </p><p>against infringement 16 </p><p>24.0413 Express warranties by affirmation, promise, description, </p><p> sample 16 </p><p>24.0414 Implied warranty; Merchantability; Usage of trade 16 </p><p>24.0415 Implied warranty; Fitness for particular purpose 17 </p><p>24.0416 Implied warranties; Exclusion of sales of blood, blood plasma, </p><p>human tissue or organs as medical services 17 </p><p>24.0417 Exclusion or modification of warranties 17 </p><p>24.0418 Cattle, hogs and sheep; No implied warranty as to disease 18 </p><p>24.0419 Cumulation and conflict of warranties express or implied 18 </p><p>24.0420 Third-party beneficiaries of warranties express or implied 18 </p><p>24.0421 F.O.B. and F.A.S. terms 18 </p><p>24.0422 C.I.F. and C. &amp; F. terms 19 </p><p>24.0423 C.I.F. or C. &amp; F.; Net landed weights; Payment on arrival </p><p>Warranty of condition on arrival 19 </p><p>24.0424 Delivery ex-ship 19 </p><p>24.0425 Form of bill of lading required in overseas shipment; </p><p> Overseas 20 </p><p>24.0426 No arrival, no sale term 20 </p><p>24.0427 Letter of credit term; Confirmed credit 20 </p><p>24.0428 Sale on approval and sale or return; Consignment sales and </p><p> rights of creditors 21 </p><p>24.0429 Special incidents of sale on approval and sale or return 21 </p><p>24.0430 Sale by auction 21 </p><p>CHAPTER 24.05 </p><p>Title, Creditors, and Good Faith Purchases </p><p>24.0501 Passing of title; Reservation for security; Limited </p><p>Application of this section 22 </p><p>24.0502 Rights of sellers creditors against sold goods 23 </p><p>24.0503 Power to transfer; Good faith purchases of goods; </p><p>Entrusting 23 </p><p>CHAPTER 24.06 </p><p>Performances </p><p>24.0601 Insurable interest in goods; Manner of identification of </p><p>goods 23 </p><p>24.0602 Buyers rights to goods on sellers insolvency 24 </p><p>24.0603 Manner of sellers tender of delivery 24 </p><p>24.0604 Shipment by seller 25 </p><p>24.0605 Sellers shipment under reservation 25 </p><p>24.0606 Rights of financing agency 25 </p><p>24.0607 Effect of sellers tender; Delivery on condition 26 </p></li><li><p>iii December 2012 </p><p>iii </p><p>24.0608 Cure by seller of improper tender or delivery; Replacement 26 </p><p>24.0609 Risk of loss in the absence of breach 26 </p><p>24.0610 Effect of breach on risk of loss 26 </p><p>24.0611 Tender of payment by buyer; Payment by check 27 </p><p>24.0612 Payment by buyer before inspection 27 </p><p>24.0613 Buyers right to inspection of goods 27 </p><p>24.0614 When documents deliverable on acceptance; When on payment 27 </p><p>24.0615 Preserving evidence of goods in dispute 27 </p><p>CHAPTER 24.07 </p><p>Breach, Repudiation, and Excuse </p><p>24.0701 Buyers rights on improper delivery 28 </p><p>24.0702 Manner and effect of rightful rejection 28 </p><p>24.0703 Merchant buyers duties as to rightfully rejected goods 28 </p><p>24.0704 Buyers options as to salvage of rightfully rejected goods 28 </p><p>24.0705 Waiver of buyers objections by failure to particularize 29 </p><p>24.0706 What constitutes acceptance of goods 29 </p><p>24.0707 Effect of acceptance; Notice of breach; Burden of </p><p> establishing breach after acceptance; Notice of claim or </p><p> litigation to person answerable over 29 </p><p>24.0708 Revocation of acceptance in whole or in part 30 </p><p>24.0709 Right to adequate assurance of performance 30 </p><p>24.0710 Anticipatory repudiation 30 </p><p>24.0711 Retraction of anticipatory repudiation 31 </p><p>24.0712 Installment contract; Breach 31 </p><p>24.0713 Casualty to identified goods 31 </p><p>24.0714 Substituted performance 31 </p><p>24.0715 Excuse by failure of presupposed conditions 32 </p><p>24.0716 Procedure on notice claiming excuse 32 </p><p>CHAPTER 24.08 </p><p>Remedies </p><p>24.0801 Remedies for breach of collateral contracts not impaired 32 </p><p>24.0802 Sellers remedies on discovery of buyers insolvency 32 </p><p>24.0803 Sellers remedies in general 33 </p><p>24.0804 Sellers right to identify goods to the contract </p><p> notwithstanding breach or to salvage unfinished goods 33 </p><p>24.0805 Sellers stoppage of delivery in transit or otherwise 33 </p><p>24.0806 Sellers resale including contract for resale 34 </p><p>24.0807 Person in the position of a seller 34 </p><p>24.0808 Sellers damages for non-acceptance or repudiation 35 </p><p>24.0809 Action for the price 35 </p><p>24.0810 Sellers incidental damages 35 </p><p>24.0811 Buyers remedies in general; Buyers security interest in </p><p>rejected goods 35 </p><p>24.0812 Cover; Buyers procurement of substitute goods 36 </p><p>24.0813 Buyers damages for non-delivery or repudiation 36 </p><p>24.0814 Buyers damages for breach in regard to accepted goods 36 </p><p>24.0815 Buyers incidental and consequential damages 36 </p><p>24.0816 Buyers right to specific performance or replevin 36 </p><p>24.0817 Deduction of damages from the price 37 </p><p>24.0818 Liquidation or limitation of damages Deposits 37 </p><p>24.0819 Contractual modification or limitation of remedy 37 </p><p>24.0820 Effect of cancellation or rescission on claims for </p><p> antecedent breach 38 </p><p>24.0821 Remedies for fraud 38 </p><p>24.0822 Who can sue third parties for injury to goods 38 </p></li><li><p>iv December 2012 </p><p>iv </p><p>24.0823 Proof of market price; Time and place 38 </p><p>24.0824 Admissibility of market quotations 38 </p><p>24.0825 Statute of limitations in contracts for sale 39 </p><p>CHAPTER 24.09 </p><p>Leases of Goods </p><p>24.0901 Short title 39 </p><p>24.0902 Scope 39 </p><p>24.0903 Definitions; Index of definitions 39 </p><p>24.0904 Leases subject to other statutes 40 </p><p>24.0905 Territorial application of article to goods covered by </p><p>certificate of title 42 </p><p>24.0906 Limitation on power of parties to consumer lease to choose </p><p>applicable law and judicial forum 42 </p><p>24.0907 Waiver or renunciation of claim or right after default 42 </p><p>24.0908 Unconscionability 43 </p><p>CHAPTER 24.10 </p><p>Formation and Construction of Lease Contract </p><p>24.1001 Statue of frauds 43 </p><p>24.1002 Final written expression; Parol or extrinsic evidence 44 </p><p>24.1003 Seals inoperative 44 </p><p>24.1004 Formation in general 44 </p><p>24.1005 Firm offers 44 </p><p>24.1006 Offer and acceptance in formation of lease contract 44 </p><p>24.1007 Course of performance or practical construction 45 </p><p>24.1008 Modification, rescission and waiver 45 </p><p>24.1009 Lessee under finance lease as beneficiary of supply </p><p> contract 45 </p><p>24.1010 Express warranties 46 </p><p>24.1011 Warranties against interference and against infringement; </p><p>lessees obligation against infringement 46 </p><p>24.1012 Implied warranty of merchantability 46 </p><p>24.1013 Implied warranty of fitness for particular purpose 46 </p><p>24.1014 Exclusion or modification of warranties 47 </p><p>24.1015 Cumulation and conflict of warranties express or implied 47 </p><p>24.1016 Third party beneficiaries of express and implied </p><p> warranties 47 </p><p>24.1017 Identification 48 </p><p>24.1018 Insurance and proceeds 48 </p><p>24.1019 Risk of loss 48 </p><p>24.1020 Effect of default on risk of loss 49 </p><p>24.1021 Casualty to identified goods 49 </p><p>CHAPTER 24.11 </p><p>Effects of Lease Contract </p><p>24.1101 Enforceability of lease contract 49 </p><p>24.1102 Title to and possession of goods 49 </p><p>24.1103 Alienability of partys interest under lease contract or of </p><p>lessors residual interest in goods; delegation of </p><p> performance; assignment of rights 49 </p><p>24.1104 Subsequent lease of goods by lessor 50 </p><p>24.1105 Sale or sublease of goods by lessee 51 </p><p>24.1106 Priority of certain liens arising by operation of law 51 </p><p>24.1107 Priority of liens arising by attachment or levy on, security </p><p>interests in, and other claims to goods 51 </p></li><li><p>v December 2012 </p><p>v </p><p>24.1108 Special rights of creditors 52 </p><p>24.1109 Lessors and lessees rights when goods become fixtures 52 </p><p>24.1110 Lessors and lessees rights when goods become accessions 54 </p><p>CHAPTER 24.12 </p><p>Performance of Lease Contract: Repudiated, Substituted and Excused </p><p>24.1201 Insecurity; Adequate assurance of performance 54 </p><p>24.1202 Anticipatory repudiation 55 </p><p>24.1203 Retraction of anticipatory repudiation 55 </p><p>24.1204 Substituted performance 55 </p><p>24.1205 Excused performance 56 </p><p>24.1206 Procedure on excused performance 56 </p><p>24.1207 Irrevocable promises; Finance leases 56 </p><p>CHAPTER 24.13 </p><p>Default </p><p>24.1301 Default procedures 57 </p><p>24.1302 Notice after default 57 </p><p>24.1303 Modification or impairment of rights and remedies 57 </p><p>24.1304 Liquidation of damages 58 </p><p>24.1305 Cancellation and termination and effect of cancellation, </p><p>termination, rescission, or fraud on rights and remedies 58 </p><p>24.1306 Statute of limitations 58 </p><p>24.1307 Proof of market rent; Time and place 59 </p><p>24.1308 Lessees remedies 59 </p><p>24.1309 Lessees rights on improper delivery; Rightful rejection 60 </p><p>24.1310 Installment lease contracts; Rejection and default 60 </p><p>24.1311 Merchant lessees duties as to rightfully rejected goods 60 </p><p>24.1312 Lessees duties as to rightfully rejected goods 61 </p><p>24.1313 Cure by lessor of improper delivery; Replacement 61 </p><p>24.1314 Waiver of lessees objections 61 </p><p>24.1315 Acceptance of goods 62 </p><p>24.1316 Effect of acceptance of goods; Notice of default; Burden of </p><p>establishing default after acceptance; Notice of claim or </p><p>litigation to person answerable over 62 </p><p>24.1317 Revocation of acceptance of goods 63 </p><p>24.1318 Cover; Substitute goods 63 </p><p>24.1319 Lessees damages for non-delivery, repudiation, default and </p><p>breach of warranty in regard to accepted goods 63 </p><p>24.1320 Lessees incidental and consequential damages 64 </p><p>24.1321 Lessees right to specific performance or replevin 64 </p><p>24.1322 Lessees right to goods on lessors insolvency 64 </p><p>24.1323 Lessees rights 65 </p><p>24.1324 Lessors right to identify goods to lease contract 65 </p><p>24.1325 Lessors right to possession of goods 65 </p><p>24.1326 Lessors stoppage of delivery in transit or otherwise 65 </p><p>24.1327 Lessors rights to dispose of goods 66 </p><p>24.1328 Lessors damages for non-acceptance or repudiation 66 </p><p>24.1329 Lessors action for a rent 67 </p><p>24.1330 Lessors incidental damages 68 </p><p>24.1331 Lessors right to recover for damage to residual interest 68 </p><p>24.1332 Standing to sue third parties for injury to goods 68 </p><p>CHAPTER 24.14 </p><p>Negotiable Instrumentals </p><p>24.1401 Short title 68 </p><p>24.1402 Subject matter 68 </p></li><li><p>vi December 2012 </p><p>vi </p><p>24.1403 Definitions 69 </p><p>24.1404 Negotiable instrument 70 </p><p>24.1405 Issue of instrument 71 </p><p>24.1406 Unconditional promise or order 71 </p><p>24.1407 Instrument payable in foreign money 72 </p><p>24.1408 Payable on demand or at definite time 72 </p><p>24.1409 Payable to bearer or to order 72 </p><p>24.1410 Identification of person to whom instrument is payable 72 </p><p>24.1411 Place of payment 73 </p><p>24.1412 Interest 73 </p><p>24.1413 Date of instrument 74 </p><p>24.1414 Contradictory terms of instrument 74 </p><p>24.1415 Incomplete instruments 74 </p><p>24.1416 Joint and several liability contribution 74 </p><p>24.1417 Other agreements affecting instrument 74 </p><p>24.1418 Statute of limitations 75 </p><p>24.1419 Notice of right to defend action 75 </p><p>CHAPTER 24.15 </p><p>Negotiation, Transfer, and Endorsement </p><p>24.1501 Negotiation 76 </p><p>24.1502 Negotiation subject to rescission 76 </p><p>24.1503 Transfer of instrument rights acquired by transfer 76 </p><p>24.1504 Endorsement 76 </p><p>24.1505 Special endorsement; Blank endorsement; Anomalous </p><p>endorsement 77 </p><p>24.1506 Restrictive endorsement 77 </p><p>24.1507 Reacquisition 78 </p><p>CHAPTER 24.16 </p><p>Enforcement of Instruments </p><p>24.1601 Person entitled to enforce instrument 78 </p><p>24.1602 Holder in due course 78 </p><p>24.1603 Value and consideration 79 </p><p>24.1604 Overdue instrument 80 </p><p>24.1605 Defense and claims in recoupment 80 </p><p>24.1606 Claims to an instrument 81 </p><p>24.1607 Notice of breach of fiduciary duty 81 </p><p>24.1608 Proof of signatures and status as holder in due course 82 </p><p>24.1609 Enforcement of lost, destroyed, or stolen instrument 82 </p><p>24.1610 Effect of instrument on obligation for which taken 82 </p><p>24.1611 Accord and satisfaction by use of instrument 83 </p><p>24.1612 Lost, destroyed, or stolen cashiers check, tellers check or </p><p>certified check 84 </p><p>CHAPTER 24.17 </p><p>Liability of parties </p><p>24.1701 Signature 85 </p><p>24.1702 Signature by representative 85 </p><p>24.1703 Unauthorized signature 86 </p><p>24.1704 Imposters Fictitious payees 86 </p><p>24.1705 Employers responsibility for fraudulent endorsement by </p><p>employee 86 </p><p>24.1706 Negligence contributing to forged signature or alteration of </p><p>instrument 87 </p><p>24.1707 Alteration 88 </p><p>24.1708 Drawee not liable on unaccepted draft 88 </p></li><li><p>vii December 2012 </p><p>vii </p><p>24.1709 Acceptance of draft Certified check 88 </p><p>24.1710 Acceptance varying draft...</p></li></ul>


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