THE “BAD CHECK” SELLER UNDER UCC SECTION 2–511(3)

Extensive revamping of traditional contract remedies was brought about by Article 2 of the Uniform Commercial Code (UCC). At common law, the cash sale was one in which the title to goods passed from seller to buyer only upon payment of the price by the buyer, including instances where the seller delivered possession with the understanding that title would not pass until payment. The most important "cash sale" involved the transfer of goods by seller while accepting buyer's check in payment. If this check were not paid, the courts generally held that title did not pass. Although the UCC has no sections specifically denominated as "cash sale" clauses, Section 2-507(2) contains the common law rule regarding cash sales. Cases involving Section 2-511(3) usually occupy a position subordinate to those under Section 2-507(2). Section 2-511(3) should exclusively control bad check cases. This approach would facilitate remedies established by Article 2.