[Lucky Morton] Morton, who owns 500 acres of land in east Texas, has just discovered oil under his property. He calls OilEx, who wants to buy all of the oil from Morton's property. Morton is thrilled about the money he will make from selling the oil and he signs a contract allowing OilEx to set up a drilling station on his property. Thinking he can get more money off his land, Morton cuts down all of his trees with a chainsaw and then sells them to PaperCo to be made into paper. Meanwhile, Morton's neighbor offers to buy Morton's wheat crop after it is harvested in the Fall, and Morton agrees.
-Is Morton's contract with OilEx likely covered by the UCC?

Question

Quizplus · Accepted Answer

The Uniform Commercial Code (UCC) generally covers transactions involving the sale of goods, but when a contract primarily involves the sale of real property or the granting of rights to extract minerals or other natural resources from the land, it is not considered a sale of goods. In Morton's case, the contract with OilEx grants the company the right to enter his property and extract oil, which is a right related to real property, not a sale of goods covered by the UCC.

[Lucky Morton] Morton, Who Owns 500 Acres of Land in East