Exam 20: Performance

Vernon is an accountant for a major accounting firm. One day at work, he is discussing his collection of rare coins with one of his co-workers. Vernon tells his co-worker that he keeps his collection at home and that he has recently purchased several Chinese gold Panda coins at an exceptional price. The co-worker expresses an interest in buying two of the coins at a price of $250, and a contract is duly formed. If no place for delivery is expressed, where are the coins to be delivered?

In the case of partial destruction of identified goods before risk of loss passes to the buyer, the buyer has the option to avoid the contract or to accept the goods with due allowance from the contract price for the deterioration or deficiency.

Harbor Shipping had a contract with CatCoZ to ship four crates of plush cat beds from CatCoZ's warehouse in Norfolk, Virginia to Bar Harbor, Maine.  At the appointed time, the crates had not yet arrived to the Norfolk warehouse.  Harbor Shipping must wait a reasonable number of days for the crates to arrive or they will breach the contract.

The seller is excused from the duty of performance on the nonoccurrence of presupposed conditions that were a basic assumption of the contract, unless the seller has expressly assumed the risk.

Allister contracts to the sell and deliver to Chan 300 rolls of bubble wrap. Unless the parties agree otherwise, Allister must tender all 300 rolls in a single delivery, and Chan's payment is due at the time of the tender.

In April, Howard bought a sailboat from a local marina. The boat was defective and did not turn about properly. Despite this, Howard used the boat extensively all summer and the boat was in worse condition than when it was bought. By September 30, Howard had waived his right to revoke acceptance.

Revocation of acceptance is effective without notice to the seller.

Revocation and rejection give the buyer the same rights and duties with respect to the goods.

Rejection is ineffective unless the buyer notifies the seller.

A "commercial unit" is a unit of goods that by commercial usage is a single unit and that, if divided, would be materially impaired in character or value.

A buyer is obliged to accept conforming goods and to pay for them according to the contract terms.

A buyer's or lessee's right to reject nonconforming goods depends on the size or extent of the breach of the seller's or lessor's duty to tender conforming goods.

Sam agrees to sell Bill one 18-cubic-foot, yellow refrigerator for $700. It is to be delivered to Bill's home on July 7. Under the perfect tender rule, which one of the following cases would permit Bill to rightfully reject the goods?

A carpenter ordered 500 sheets of 1/2-inch plywood from her supplier, but received 498 sheets of 1/4-inch plywood. If she rejects these goods, she has no further obligation to her supplier regarding these nonconforming goods.

Where goods are in the possession of a bailee and are to be delivered without being moved, in most instances the seller may either tender to the buyer a document of title or obtain an acknowledgment by the bailee of the buyer's right to possess the goods.

Which of the following terms would indicate a destination contract?

The Code does not excuse performance based upon commercial impracticability.

Revocation of acceptance must be done as soon as the buyer discovers the grounds for the revocation.

Which of the following is NOT an option for the buyer if a shipment of goods fails in any respect to conform to the contract?

Nicholas ordered 500 Christmas trees from North Pole Tree Farm to be delivered on November 14. When the trees arrive, the North Pole must accept tender of payment by any means or in any manner current, such as a check, in the ordinary course of business unless North Pole demands cash and allows Nicholas a reasonable time within which to obtain it.