Which of the following types of contracts must typically be in writing according to the UCC?

Which of the following types of contracts must typically be in writing according to the UCC?

• A. Contracts involving services only
• B. Lease contracts with payments under $1,000
• C. Lease contracts with payments over $1,000
• D. Short-term rental agreements

Answer: (C)

The correct answer is that lease contracts with payments over $1,000 must typically be in writing according to the Uniform Commercial Code (UCC). The UCC specifies that for leases with a total payments of $1,000 or more, a writing is required to provide clarity and enforceability regarding the terms and conditions of the lease agreement. This requirement helps to protect both parties by ensuring that there is a clear record of the commitments made, which is particularly important in transactions involving significant sums of money. In contrast, contracts that involve services only, leases under $1,000, or short-term rental agreements typically do not require a written contract under the UCC stipulations. Contracts for services usually fall outside the UCC's purview since it mainly governs goods and leases rather than service agreements. Moreover, lease contracts that involve payments below the $1,000 threshold do not necessitate a written form under the UCC, allowing for more flexibility in smaller transactions. Similarly, short-term rentals may not meet the criteria that trigger the writing requirement under the UCC either, as the UCC is mainly concerned with transactions that have longer durations or larger amounts.

The correct answer is that lease contracts with payments over $1,000 must typically be in writing according to the Uniform Commercial Code (UCC). The UCC specifies that for leases with a total payments of $1,000 or more, a writing is required to provide clarity and enforceability regarding the terms and conditions of the lease agreement. This requirement helps to protect both parties by ensuring that there is a clear record of the commitments made, which is particularly important in transactions involving significant sums of money.

In contrast, contracts that involve services only, leases under $1,000, or short-term rental agreements typically do not require a written contract under the UCC stipulations. Contracts for services usually fall outside the UCC's purview since it mainly governs goods and leases rather than service agreements. Moreover, lease contracts that involve payments below the $1,000 threshold do not necessitate a written form under the UCC, allowing for more flexibility in smaller transactions. Similarly, short-term rentals may not meet the criteria that trigger the writing requirement under the UCC either, as the UCC is mainly concerned with transactions that have longer durations or larger amounts.