By Fedoroff T.B. et al.
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Although not technically an amendment, these modifications are sometimes labeled as such. 23 A amendment A CAUTION Amending certain assigned UCC agreements. If your contract is a secured transaction—a loan or a credit transaction in which the lender acquires a security interest in collateral you owned—then there may be complications involving amendments to assigned agreements under Section 9-405 of the Uniform Commercial Code (UCC). You should consult with an attorney before amending an assigned contract for a secured transaction.
For example, if you’ve contracted to buy a house and you learn that the other party has sub sequently sold it to his brother, your sales contract has been repudiated (even if you never heard a word about it from the other party). UCC rules for sale of goods. The Uniform Commercial Code (UCC)—legal rules governing the sale of goods—prescribes a procedure for dealing with anticipatory breach. If you have reason to believe that the other party is not going to fulfill its obligations, you have a right to demand “adequate assurance of performance,” and you can suspend your own performance until the assurance is provided.
This is considered to be the same as reasonable efforts. • Good-faith efforts. Again, this is interpreted to require reasonable efforts. • Best efforts. A person who promises to make best efforts must do everything possible to make it happen, even to the point of suffering a commercial loss. As noted, courts often disagree with this interpretation. Many have held that a best-efforts promise does not require the party to act in a commercially unreasonable manner (for example, to risk bankruptcy).