(810 ILCS 5/2-106)
(from Ch. 26, par. 2-106)
"contract"; "agreement"; "contract for sale"; "sale"; "present
sale"; "conforming" to contract; "termination"; "cancellation".
(1) In this Article 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 2-401). A
"present sale" means a sale which is accomplished by the making of the
(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
(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.
(Source: Laws 1961, 1st SS., p. 7