A-phone Corporation, a California corporation, enters into an agreement with Matt to sell him a phone. In the contract, Matt specifically states that a representative from A-phone must travel to his home in Uganda and deliver it to Matt in person and title will pass once the phone is safely placed in Matt's hands in Uganda. A-phone drops the phone in the mail as they realize it is too expensive to travel to Uganda to deliver it in person. Which statement below is correct according to the UCC as to when title actually passed?
A) Since the delivery terms in the contract seem unreasonable, the court will reform the contract to determine title passed once it was dropped in the mail.
B) Since the delivery terms in the contract seem unreasonable, the court will declare the contract unenforceable.
C) The UCC allows the parties to the contract to determine when title passes and the court will enforce the parties' agreement.
D) The UCC will apply default rules if the result will be harsh.

Question

Quizplus · Accepted Answer

The UCC (Uniform Commercial Code) allows the parties in a contract to determine the terms of their agreement, including when title passes, and courts will generally enforce these terms as long as they are clear and agreed upon by both parties. In this scenario, since the contract specifically states that title will pass once the phone is safely placed in Matt's hands in Uganda, that is when title would pass according to the agreement.

A-Phone Corporation, a California Corporation, Enters into an Agreement with Matt