Section 1–204. Value.

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Terms Used In N.Y. Uniform Commercial Code 1-204

  • Contract: A legal written agreement that becomes binding when signed.

Except as otherwise provided in articles 3, 4, and 5, a person gives value for rights if the person acquires them:

(a) in return for a binding commitment to extend credit or for the extension of immediately available credit, whether or not drawn upon and whether or not a charge-back is provided for in the event of difficulties in collection;

(b) as security for, or in total or partial satisfaction of, a preexisting claim;

(c) by accepting delivery under a preexisting contract for purchase; or

(d) in return for any consideration sufficient to support a simple contract.