Predominant-Purpose Test (or Predominant-Factor Test)

Predominant-Purpose Test (or Predominant-Factor Test)

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Definition

A test for determining whether a mixed contract for goods and services is subject to Article 2 of the Uniform Commercial Code. The test evaluates factors including the contract language, billing terms, allocation of costs, and the nature of the final product delivered to determine whether the contract should be considered predominantly a contract for goods or for services.

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