Exam 22: Performance and Breachapter of Sales and Lease Contracts

Under shipment contract for the sale of a certain quantity of solar panels, the seller is required to deliver conforming goods at a particular destination.

If a buyer rightfully rejects nonconforming goods, he or she can resell them and retain the proceeds, without crediting the amount to the seller.

Merchant Mart accepts a shipment of nonconforming goods from Nabob Inc. Under the applicable statute of limitations, with respect to pursuing a remedy against the seller for the shipment, the buyer

Granos de Café S.A., a Columbian company, and Hot Drinks Inc., a U.S. firm, contract for a sale of coffee beans. Granos does not deliver. Under the United Nations Convention for the International Sale of Goods, Hot can recover as damages the difference between

Commercial impracticability arises only when the parties-at the time the contract was made-had reason to foresee a certain event that could make performance "impracticable."

Bull & Cow Corporation, a U.S. firm, and Carne Ltd., an Italian company, contract for a sale of beef. Under a letter of credit issued by Fiscal Bank to facilitate the deal, Carne promises to

Lumber Company agrees to sell a certain quantity of plywood to Metro Builders Inc. under a destination contract. Lumber must

Loading Ramps Inc. contracts to sell sixteen loading ramps to Moving Service Inc. Loading ships the ramps, which Moving accepts but does not pay for. Loading can

Colby contracts in writing to sell his Dodge-brand pick-up truck to Efrem for $10,500. Colby agrees to deliver the truck on Friday, and Efrem promises to pay the $10,500 on the following Monday. On Thursday, Efrem tells Colby that he changed his mind and will not buy the truck. Over the weekend, Efrem changes his mind again and tenders $10,500 to Colby on Monday. Colby has not sold the truck to another party but refuses the tender and refuses to deliver. Efrem claims that Colby has breached their contract. Colby contends that Efrem's repudiation released him from his duty to perform under the contract. Who is correct, and why?

A buyer is required to cover-a failure to do so will bar the buyer from using any other remedies available under the UCC.

The use of a letter of credit in a transaction for the international sale of goods greatly reduces costs in the deal because the issuer

Construction Inc. contracts to buy some heavy equipment from Dig Machines Inc. Before either party performs, Dig sells its assets to Excavation Corporation. On learning of the sale, Construction is concerned about its contract with Dig. Construction should