If a homeowner defaults, or fails to make the mortgage payments, the lender loses the right to foreclose on the mortgaged property.

The payment of Linda’s debt to Pat is guaranteed by Linda’s personal property. Pat is most likely to perfect her interest by​

Sam is the secured party in a transaction with Lilly, who is the debtor. Sam files a security agreement with the appropriate state official. The security agreement must contain

Precise Parts, Inc., and Quality Auto stores enter into a contract for a sale of auto parts that meet certain specifications. Precise Parts ships goods that do not comply. Quality Auto

A firm offer by a merchant may be oral.

Medico Inc. enters into a contract to sell medical supplies to New Hospital Corporation, which sells some of the items to Physicians Clinic, which later sells them to Oscar, a patient and consumer. Article 2 of the UCC applies to the sales transactions between

The payment of Valley Farm’s debt to County Bank is guaranteed by the farm’s personal property. This property is​

If a buyer breaches a contract, the seller can choose to simply cancel the contract.

A creditor must exhaust all legal remedies against the principal debtor before holding a surety responsible for payment.

To create an enforceable security interest, the secured party must give something of value to a debtor’s other creditors.