2011 California Code
Commercial Code
DIVISION 2. SALES [2101 - 2801]
CHAPTER 1. Short Title, General Construction and Subject Matter
Section 2106

(1) In this division unless the context otherwise requires contract and agreement are limited to those relating to the present or future sale of goods. Contract for sale includes both a present sale of goods and a contract to sell goods at a future time. A sale consists in the passing of title from the seller to the buyer for a price (Section 2401). 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) 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. On termination all obligations 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 cancelling party also retains any remedy for breach of the whole contract or any unperformed balance.

(Enacted by Stats. 1963, Ch. 819.)