Exam 19: Performance and Breach

When a buyer has accepted nonconforming goods in the past, a seller can deliver nonconforming goods on the deadline for delivery but still have time to cure even past the deadline.

Unless otherwise agreed, all goods called for by a contract must be tendered in a single delivery even if they are going to be produced in different production runs or lots.

If some of the goods do not conform to the contract, the buyer must accept or reject all of the goods.

If either the goods or their tender of the goods by the seller or lessor fails to conform to the contract in any respect, the buyer or lessee normally can reject the goods.

Banquets & Parties (B&P) contracts to buy 1,000 balloons from Gas Bags, Inc., for $1 per item. When the market price decreases to 50 cents per balloon, B&P refuses to go through with the deal. Gas Bags can recover as contract damages

Gold Medical Supply Company and Home & Hospice Care, Inc., enter into a contract for a sale of health care equipment and supplies. Under either a shipment contract or a destination contract, the seller must

Under the perfect tender rule, if tender is not perfect, the seller is in breach even if the attempted tender was early.

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting. Under a shipment contract, the seller must

Tack Inc. and Stallion Stables enter into a contract for a sale of stable equipment. Tack delivers, but Stallion does not pay. Tack can normally recover as damages

Soft Chair Company contracts to deliver one hundred chairs to Stuffy Furnishings Store on May 1. Soft tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy

Beef Burgers, Inc. contracts to buy five hundred head of cattle from Cattle Ranch. Before the seller can begin any delivery, an outbreak of disease causes a quarantine of the ranch. In this circumstance, the perfect tender rule

Buyers and lessees who have rightfully rejected goods or revoked acceptance can protect themselves by exercising the right to cure.

If a seller discovers that the buyer has received goods on credit and is insolvent, the seller can demand return of the goods.

Tender of delivery requires that the seller or lessor hold conforming goods at the buyer's or lessee's disposal.

Anticipatory repudiation occurs when the parties-at the time the contract was made-had reason to anticipate a certain event.

Asian Noodle Company contracts to sell 1,000 cases of rice noodles to Bob's Bistros, Inc., but refuses to deliver. Bob's right to obtain substitute goods for those that were due under the contract is the right to obtain

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that

Under the UCC, if a contract does not designate the place of delivery for the goods, and the buyer is expected to pick them up, the place of delivery is the seller's place of business.

The term cure refers to the seller's or lessor's right to seek the unpaid amount due on a contract from parties other than the buyer or lessee.

Clear View Company, which is based in Delaware, agrees to sell fifty windows, identified as currently being stored in Florida, to Fair Sight, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of delivery is in