North Dakota Code 41-02-06 – (2-106) Definitions
1. In this chapter, unless the context otherwise requires:
Terms Used In North Dakota Code 41-02-06
- Contract: A legal written agreement that becomes binding when signed.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Property: includes property, real and personal. See North Dakota Code 1-01-49
a. “Agreement” and “contract” are limited to those relating to the present or future sale of goods.
b. “Contract for sale” includes both a present sale of goods and a contract to sell goods at a future time.
c. “Present sale” means a sale that is accomplished by the making of the contract.
d. “Sale” consists in the passing of title from the seller to the buyer for a price (section 41-02-46).
2. “Cancellation” occurs when either party puts an end to the contract for breach by the other and its effect is the same as that of “termination” except that the canceling party also retains any remedy for breach of the whole contract or any unperformed balance.
3. Goods or conduct including any part of a performance are “conforming” or conform to the contract when they are in accordance with the obligations under the contract.
4. “Hybrid transaction” means a single transaction involving a sale of goods and:
a. The provision of services; b. A lease of other goods; or
c. A sale, lease, or license of property other than goods.
5. “Termination” occurs when either party pursuant to a power created by agreement or law puts an end to the contract otherwise than for its breach. On “termination” all obligations which are still executory on both sides are discharged but any right based on prior breach or performance survives.