ORS 71.1030¹
Construction to promote purposes and policies
  • applicability of supplemental principles of law

(1) The Uniform Commercial Code must be liberally construed and applied to promote its underlying purposes and policies, which are:

(a) To simplify, clarify and modernize the law governing commercial transactions;

(b) To permit the continued expansion of commercial practices through custom, usage and agreement of the parties; and

(c) To make uniform the law among the various jurisdictions.

(2) Unless displaced by the particular provisions of the Uniform Commercial Code, the principles of law and equity, including the law merchant and the law relative to capacity to contract, principal and agent, estoppel, fraud, misrepresentation, duress, coercion, mistake, bankruptcy and other validating or invalidating cause, supplement its provisions. [1961 c.726 §71.1030 (Construction to promote purposes and policies); 2009 c.181 §3; 2011 c.9 §4]

Notes of Decisions

A check payable jointly may be negotiated only by endorse­ment of all payees, and defendant bank’s con­duct in paying the entire proceeds to one payee without the endorse­ment of and to the exclusion of the other payee constituted conversion. Berkheimers, Inc. v. Citizens Valley Bank, 270 Or 807, 529 P2d 903 (1974)

The general principles of conversion remain in force by virtue of this sec­tion. Berkheimers, Inc. v. Citizens Valley Bank, 270 Or 807, 529 P2d 903 (1974)

Law Review Cita­tions

75 OLR 493 (1996)

1 Legislative Counsel Committee, CHAPTER 71—General Provisions for Uniform Commercial Code, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ors071.­html (2019) (last ac­cessed May 16, 2020).
2 Legislative Counsel Committee, Annotations to the Oregon Revised Stat­utes, Cumulative Supplement - 2019, Chapter 71, https://­www.­oregonlegislature.­gov/­bills_laws/­ors/­ano071.­html (2019) (last ac­cessed May 16, 2020).
3 OregonLaws.org assembles these lists by analyzing references between Sections. Each listed item refers back to the current Section in its own text. The result reveals relationships in the code that may not have otherwise been apparent. Currency Information