ACME, Inc is a software producer that entered into a verbal agreement with XYZ Corporation wherein XYZ agreed to buy ACME's newly developed software. The agreement also provided that ACME would supply training personnel, as well as technical personnel, to work with XYZ employees in installing and learning the software. What law governs this agreement?
You must first determine whether the contract is for a good or a service. The software involved here is considered to be a good, since "goods" means anything movable, except for money, securities, and certain legal rights. If the contract involves both goods and services, the court will look to see which element is the primary purpose. The UCC governs contracts for a sale of goods, while common-law principles govern contracts for sales of services and everything else. Here the primary purpose of the contract is to sell the software. The services are merely to support the sale of the software. The UCC would probably control.
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