Exam 23: Sales Remediespart V: Negotiable Instruments

Where the seller fails to make delivery, the buyer can cancel the contract, but he must give the seller notice of his cancellation.

Under the CISG, if the buyer fails to perform any obligations, the seller may either require the buyer to pay the price or fix an additional period of time for the buyer to perform.

Under the CISG, if the contract is avoided and the seller has resold the goods in a reasonable manner and within a reasonable time after avoidance, the seller may recover:

Ronald agrees to sell Mack goods for $2,000.The value of the goods accepted is $1,500.If the goods had been as warranted, their value would have been $2,600.What are the buyer's damages for breach of warranty?

Specific performance is an equitable remedy which seeks to compel the party in breach to perform the contract according to its terms.

On the seller's breach, if the buyer makes substitute purchases in good faith and without unreasonable delay, she may recover, as damages, the difference between the cost of cover and the contract price, plus incidental damages but minus any expenses she saved because of the seller's breach.

The contract between the buyer and the seller may expressly limit or exclude consequential damages so long as the contract is not unconscionable.

One hundred porch swings have been identified to the contract and a down payment of $200 of the $1,500 purchase price has been paid.If the seller becomes insolvent, the buyer may still pay $1,300 and get the goods.

A seller's remedies upon the buyer's default:

A contractual remedy is optional unless the parties expressly agree that it is to be exclusive.

If the buyer makes a wrongful rejection, the seller may resell the goods in good faith and in a commercially reasonable manner and the seller may recover from the buyer the difference between the contract price and the resale price, plus any incidental damages, minus expenses saved.

The fair market value of a 10-foot fishing boat is $1,000.In a special promotion, J's Marina purchases a 10-foot fishing boat for $900.The boat is badly scratched when it arrives.J's Marina, however, accepts the shipment and notifies the seller of the defect.The boat as delivered has a value of $800.If the damaged boat is a breach of warranty by the seller, the buyer may recover from the seller:

Perry is building his house and orders a hot water heater from Jones Co.to be installed by them.The hot water heater they sent has a 45-gallon capacity, but Perry had ordered a 60-gallon capacity.Jones cannot provide a 60-gallon heater for two months, so Perry cancels the contract and gets a heater from another company.Jones Co.says it must be allowed to install the replacement heater.What result?

In what three situations will a seller recover the price of goods plus incidental damages?

If the buyer is insolvent and has not paid for goods it has received, the seller may reclaim the goods.

On February 21, Cara wrote to Pandora Mfg.asking for shipment of 100 swimsuits on 90-day credit.In the letter, she gave references that indicated that her store was financially sound.Actually she had bills that she could not pay and hoped to turn the business around with the summer swimsuit sales.Pandora shipped the suits on April 2; they were received April 15.Cara immediately put them on display and 27 were sold by April 30 when Pandora discovered that Cara had lied.Pandora could:

Under the CISG, what are the damages for breach of contract by one party? Does the aggrieved party have any responsibilities after the breach occurs?

MoVu Co.contracted to buy 400 round plastic bowls from Continental Industries, then anticipatorily breached the contract when their plans changed.Continental may proceed to identify to the contract conforming goods in its possession so that it can exercise the remedy of resale of the goods.

Frances paid Abbey $1,200 for a rare first edition of a Charles Dickens novel.The sales contract states that the book is to be delivered within ten days.Abbey , however, became sentimental about the book and refused to deliver it as promised.In order to sue for specific performance under the UCC, Frances must prove that money damages will not be adequate compensation for his loss.

Tom breached a sales contract to purchase goods from Jim.In addition to other remedies available, Jim may be able to recover commercially reasonable expenses incurred as a result of the breach.These expenses are: