Exam 20: Performance

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.

Under the CISG, a party may suspend performance of his obligations if, after the conclusion of the contract, it becomes apparent that the other party will not perform a substantial part of his obligations.

In a sale of goods, the seller's tender of performance does not have to conform to the Code's perfect tender rule.

Tender of delivery requires:

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

A merchant buyer of goods receives nonconforming goods.The merchant buyer rightfully rejects and appropriately notifies the seller, but the seller has no agent in the buyer's city.The goods are perishable and threaten to decline in value speedily.The merchant buyer has no further duty to the seller other than to await the seller's instructions.

A buyer who sells rejected goods on behalf of the seller is entitled to reasonable expenses and a reasonable selling commission not to exceed ten percent of the gross proceeds.

Speedy Stop sells necessities to neighborhood shoppers until 1 a.m.every day.Dairyland delivered its order of milk products as usual around 6 a.m.while Mary, the shopkeeper, was busy with the early coffee and donut crowd.The Dairyland driver left 12 crates in the refrigerator compartment and went on to the rest of his route.At 7:30 a.m., Mary started to shelve the milk products and discovered that all 12 crates contained buttermilk rather than the usual mix of containers of whole milk, 2%, skim milk, and cream she had ordered.What is her obligation with regard to the goods?

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:

Acceptance of goods, which disallows any later rejection of them, is accomplished only through express words.

In most sales, the buyer has the right to inspect the goods before he pays.

Although the nonhappening of presupposed conditions may relieve the seller of her contractual duty, if the contingency affects only a part of the seller's capacity to perform, the seller must

A buyer in Atlanta enters into a sales contract with a seller in Chicago.If the contract does not mention the place for delivery of the goods, the place of delivery will be:

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.

a.Distinguish between a rejection of goods and a revocation of acceptance of goods. b.What is the effect of a rejection? What is the effect of a revocation? c.Does the buyer have any obligations to the seller once she has rejected the goods?

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 buyer's rejection of nonconforming goods or tender is rightful under the perfect tender rule.

Whitley ordered 800 Christmas trees from North Pines Tree Farm to be delivered on November 24.When the trees arrive, the North Pines 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 Pines demands cash and allows Whitley a reasonable time within which to obtain it..

Seller, through no fault of its own, is unable to deliver the goods to buyer because the agreed type of carrier is unavailable.Explain what the Code requires.

When is a buyer deemed to have accepted goods that are delivered pursuant to a contract?