Exam 22: Performance

John entered into a contract with Miriam to build her a walnut dining room table for $1,000.A few days later, the price of walnut lumber increased 200%, which will result in John's incurring a $300 loss on the table.Due to the price increase, John is automatically excused from performance under the contract.

J & J Co.offers a "subscription" for baby toys to be delivered every two months from the birth of a child.Payment must be made within two weeks of delivery.The Markham family accepted the J & J plan when their son, Timmy, was born.When Timmy was four months old, one J & J toy arrived, smashed to pieces.Markham:

The Code provides that where neither party is at fault and the agreed manner of delivering the goods becomes commercially impracticable, a substituted manner of performance, if commercially reasonable, must be tendered and accepted.

In which of the following situations does the seller have the right to cure?

The delivery terms "ex-ship" and "no arrival, no sale" indicate that the contract is a shipment contract.

Watkins Manufacturing has furniture, some of which it has sold to Home Interiors, stored in Central Warehouse.It is to be delivered without being moved.In order to fulfill its obligations to tender delivery, Watkins may either tender to Home Interiors a document of title or obtain an acknowledgment by the warehouse of Home Interiors' right to possess the furniture.

Mary allows the seller, Baymore Co., four weeks to repair the defects in her kitchen set.They have tried, but have not done a good job.She may revoke her acceptance as long as she:

A commercial unit may be a set of articles, such as an assortment of sizes.

Which of the following is correct with respect to the buyer's obligation of payment?

If destruction or casualty to goods, total or partial, occurs after risk of loss has passed to the buyer, who is responsible for losses?

The CISG follows the perfect tender rule, as does the Code.

Under the CISG, if prior to the date for performance of the sales contract it is clear that one of the parties will commit a fundamental breach, the other party may declare the contract avoided.

Which of the following terms indicates a shipment contract?

A merchant buyer who has rightfully rejected goods must follow reasonable instructions from the seller regarding disposition of the goods if the seller has no agent at the place of rejection.

Rejection is ineffective unless the buyer notifies the seller.

The seller's tender of performance does not have to conform to the Code's perfect tender rule.

Edna orders a set of china from Northwestern Catalog.Northwestern sends the dishes by UPS.The contract does not specify when payment is to be made.Edna must pay when:

Unless the contract specifies otherwise, goods may be tendered in installments.

Unless otherwise agreed, the buyer has the right to inspect the goods before making payment.

Parties may not contractually agree to limit the operation of the perfect tender rule.