Exam 22: Performance Breach of Sales Lease Contracts

Clear Day Company, which is based in Delaware, agrees to sell fifty windows, currently stored in Florida, to Great Vu, Inc., which is based in Hawaii. Absent an agreement to the contrary, the place of deliv?ery is in

Loni and Myra enter into a contract for a sale of clarinets and other wind instruments. Loni delivers, but Myra does not pay. Loni can normally recover as damages the difference between

Ghangzhou, Ltd., in China and Hot Togs, Inc., in the United States enter into a contract for a sale of casual clothing. Under the United Nations Convention on Contracts for the International Sale of Goods (CISG), on a breach of the contract, the nonbreaching party can normally recover as damages the difference between

Cheesy Pizza Company contracts to sell 1,000 cases of frozen pizzas to Roller Rinks, Inc., but refuses to deliver. Due to a spice shortage, Roller Rinks cannot obtain pizza elsewhere. Roller Rinks's right to recover the goods from Cheesy is the right of

Unless the parties agree otherwise, the buyer must make payment at the time and place that the goods are received.

Regal Manufacturing Company contracts to sell sweaters to Superb Styles Store. Before the sweat?ers are delivered, Superb indicates that it will not be able to pay. Regal can resell the goods

Rocky and Slim enter into a contract for a sale of five rowboats. Circumstance make it difficult for Rocky to perform, and the contract is breached. Slim looks for remedies. Unlike the common law, under the UCC, remedies are

Fact Pattern 22-A1 Internet Cafes, Inc., contracts to buy all of its requirements for coffee, at a minimum of 1 million pounds per year, from Java Corporation for six years. After three years, Internet tells Java that it plans to sell its company to Kwik Eateries, Inc. Kwik refuses to assure Java that it will continue Internet's contract. -Refer to Fact Pattern 22-A1. Java can

Primo Pools Company and Aquatic Recreation, Inc., enter into a contract for a sale of prefabricated swimming pools. Under either a shipment contract or a destination contract, the seller must

Design Architects, Inc., and Excel Supply Company contract for a sale of office furniture. Design Architects, which is insolvent, breaches the contract. Excel can stop delivery of the goods in transit

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

Theatrical Supplies Company contracts to sell to Unique Costumes, Inc., seven hundred plastic masks at $1 each to be delivered by October 1. Theatrical knows that Unique will use the masks to make Halloween costumes. Unique usually makes $7,000 profit from the cos?tumes' sale. Theatrical fails to deliver on October 1. Unique attempts to buy substitute masks, but must pay $1.20 for each and take delivery on October 15, cutting Unique's sales in half. Unique sues Theatrical. What is the measure of recovery?

If goods identified to a contract are destroyed through no fault of either party, both parties are excused from performance.

In contracts involving a carrier, a seller can complete performance only through a shipment contract.

Fact Pattern 22-B1 First State Bank issues a letter of credit in favor of Oboe Company, an American firm, to facilitate an international sales contract to buy resources from Lapland Mining, Ltd., a Finnish company. -Refer to Fact Pattern 22-B1. First State Bank

BBQ, Inc., makes and sells grills to Grill Mart, a retailer, which sells one of the grills to Hope, a consumer. BBQ and Grill Mart include in their contracts a limitation on consequential damages for personal inju?ries arising from a breach of warranty. This is prima facie un?conscionable with respect to

If a buyer breaches a contract and the seller resells the goods to another party, the seller cannot recover any loss from the breaching buyer.

Under a destination contract, a seller must deliver the goods to a carrier, after which the risk of loss passes to the buyer.

Sid and Tony enter a contract for a sale of Sid's collection of electric guitars. Before the time for performance, Sid tells Tony that he does not want to deliver the guitars. Anticipatory repudiation is

If a lessee wrongfully refuses to accept goods that conform to a contract, the lessor must tender substitute goods.