Question

What is meant by the term “mixed contract?” Why is the primary purpose test important in a “mixed contract” problem?

Answer 1

1 - The mixed contract is a contract in which the two parties enter into the agreement for the rendering of a good as well as a service. It is like a contractor providing a tangible asset and also contracting service to his party. These type of contracts are also called hybrid contract which involve both , the good and the service.

2 - The Primary purpose test is done in these kind of problem in order to ensure that the contract is subject to the Article 2 of the Uniform Commercial Code and the contract elements such as consideration, costs , motive , nature of the final product , are correct as per the contract of goods and services.