Exam 15: Performance and Breach of Sales and Lease Contracts

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule

Under the UCC,if a contract does not designate the place of delivery for the goods,then the goods must be made available at a location halfway between the seller's and the buyer's places of business.

Kim's Pony Rides orders ten saddles from Little Horse Saddles,Inc.The sales contract states that if the saddles are defective,Kim's will allow Little Horse Saddles to repair or replace them instead of rejecting the shipment.When the saddles arrive,they are defective.In this case,the perfect tender rule

Food Packaging,Inc.,agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company.Food can obtain only 20,000 of the 6-ounce contain-ers,but also ships 30,000 more expensive 8-ounce containers for the same price.Under these circumstances,Golden

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

The doctrine of commercial impracticability only extends to problems that are unforeseen.

Vehicle Leasing Agency (VLA) and Wander Trucking Company enter into a contract for a lease of eight cargo vans.VLA delivers eight vans,but they are not cargo-sized.Wander

In general,a buyer's duty to pay for tendered goods becomes absolute be-fore the buyer has had an opportunity to inspect the goods.

An installment contract is breached if a buyer accepts any nonconforming goods.

Office Suppliers,Inc.and Little Office Shop enter into a contract for a sale of office supplies.Office Suppliers is the seller.Under a shipment contract,the Office Suppliers does not have to

Once the seller has tendered delivery,the buyer is obligated to accept the goods and pay for them.

Under the perfect tender rule,if tender is not perfect,the seller is obligated to try again.

Ramblin' Country Stables contracts to buy 1,000 horseshoes from Blacksmith,Inc.,for $1 per shoe.When the market price decreases to 50 cents per shoe,Ramblin' refuses to go through with the deal.Blacksmith can recover

An installment contract is a single contract that requires or authorizes delivery in two or more separate lots to be paid for in one payment.

Loomis Weaving Company contracts to sell sweaters to Style Mart stores.Before the sweat-ers are delivered,Style Mart indicates that it will not be able to pay.Loomis can resell the goods

Text Publishers,Inc.,contracts for a sale of textbooks to University Bookstores,Inc.Viable Shipping Corporation,the carrier,transports the books to Warehouse Storage Company.Text's right to stop delivery is lost when University's rights to the goods are acknowledged by

Sof' Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Sof' tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

If a seller repudiates a contract,the buyer's damages do not have to be adjusted to reflect any expenses that were saved as a result of the breach.

Once the time for performance under the contract has expired,the seller or lessor can never exercise the right to cure.

Under the UCC,a seller's tender of goods that do not conform in every way to a contract is still a valid tender.