KRS 355.2-106: Definitions -- "Contract" -- "Agreement" -- "Contract for sale" --

"Sale" -- "Present sale" -- "Conforming" to contract -- "Termination" --

"Cancellation" -- "Hybrid transaction."

(1) In this article, unless the context otherwise requires:

(a) "Contract" and "agreement" are limited to those relating to the present or

future sale of goods;

(b) "Contract for sale" includes both a present sale of goods and a contract to sell

goods at a future time;

(c) A "sale" consists in the passing of title from the seller to the buyer for a price

(KRS 355.2-401); and

(d) A "present sale" means a sale which is accomplished by the making of the

contract.

(2) Goods or conduct, including any part of a performance, are "conforming" or

conform to the contract when they are in accordance with the obligations under the

contract.

(3) (a) "Termination" occurs when either party, pursuant to a power created by

agreement or law, puts an end to the contract otherwise than for its breach.

(b) On "termination," all obl igations which are still executory on both sides are

discharged, but any right based on prior breach or performance survives.

(4) "Cancellation" occurs when either party puts an end to the contract for breach by

the other and its effect is the same as that of "termination," except that the canceling

party also retains any remedy for breach of the whole contract or any unperformed

balance.

(5) "Hybrid transaction" means a single transaction involving a sale of goods and:

(a) The provision of services;

(b) A lease of other goods; or

(c) A sale, lease, or license of property other than goods.