(1) This act shall be liberally construed and applied to promote its
underlying purposes and policies.
(2) Underlying purposes and policies of this Act are
(a) to simplify, clarify and modernize the law governing
(b) to permit the continued expansion of commercial
practices through custom, usage and agreement of the parties;
(c) to make uniform the law among the various jurisdictions.
(3) The effect of provisions of this act may be varied by agreement,
except as otherwise provided in this act and except that the
obligations of good faith, diligence, reasonableness and care
prescribed by this act may not be disclaimed by agreement but the
parties may by agreement determine the standards by which the
performance of such obligations is to be measured if such standards
are not manifestly unreasonable.
(4) The presence in certain provisions of this act of the words
"unless otherwise agreed" or words of similar import does not imply
that the effect of other provisions may not be varied by agreement
under subsection (3).
(5) In this act unless the context otherwise requires
(a) words in the singular number include the plural, and in
the plural include the singular;
(b) words of the masculine gender include the feminine and the neuter,
and when the sense so indicates words of the neuter
gender may refer to any gender.