The Jewish holiday of Passover begins at sundown this evening.  In preparation for Passover, observant Jews must dispose of absolutely all chametz, which is basically any food that is made with grain and water that has been allowed to leaven (rise).  One way to dispose of chametz, which is also spelt chometz, is to sell it to a non-Jew and then buy it back after the holiday.  Under this option, the parties enter into an actual written contract.

Thus, I began wondering about the secular legal implications of these contracts.  I could find only a handful of U.S. cases that even mention chametz, and all of those cases involved prisoner complaints about being fed chametz.  Nonetheless, it is possible that disputes could arise.  For example, who bears the risk of loss if the chametz is destroyed in a fire or other calamity?  What if one party fails to perform?

It seems to me that the sales of chametz are governed by, among other things, Division 2 of the California Commercial Code.  Under Section 2102 provides that Division 2 applies to transactions in goods.  Section 2105 defines “goods”, with certain exceptions, as all things (including specially manufactured goods) which are movable at the time of identification of the contract for sale.  Most items of chametz (bread, beer, cookies, etc.) clearly fit within this definition.  See, e.g., Webster v. Blue Ship Tea Room, Inc., 347 Mass. 421, 198 N.E.2d 309 (1964) (applying the UCC to fish chowder).

You can watch Israel’s Prime Minister Benjamin Netanyahu sell all of the State of Israel’s chametz here.  It is unlikely, however, that the contract included a California choice of law provision.