Section 2--106. Definitions. "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 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.