Transactions in Goods Law and Legal Definition

Article 2 of the Uniform Commercial Code (UCC) applies to "transactions in goods," unless the "context otherwise requires" and with other exceptions. The most common transaction covered is a sale of goods in which the title passes from the seller to the buyer for a price, and a contract to sell something at a future time. Goods, with some exceptions, are defined as "all things (including specially manufactured goods) which are movable at the time of identification to the contract for sale".

Some of the transactions not covered by UCC Article 2 include gifts where no bargain was involved, bailments where Article 2 is not specified to be applicable, most consignments, leases, and service and construction contracts where the sale of goods isn't the dominant purpose. Money used for payment of a price, investment securities, and things in action are specifically excluded from the definition of goods for the purposes of Article 2.