Exam 21: B: Performance Breach of Sales Lease Contracts

If a buyer repudiates a contract,the seller cannot recover damages.

Hydraulic Leasing Corporation (HLC)and Dockside Offloading Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,HLC must ship or tender goods to the lessee that

Bayou Boats,Inc. ,contracts for the sale of seven swamp boats to Tidal Flats Fishing Tours.Bayou repudiates the contract.Tidal Flats's recovery of damages is measured at the time

Rocky and Slim enter into a contract for a sale of five rowboats.Circumstances 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

Field Gardens and Gourmet Restaurant,Inc. ,enter into a con?tract for a sale of lettuce.When Field learns that Gourmet is insolvent,Field can stop delivery of the goods in transit

If,before the time for contract performance,one party clearly communicates to the other the intention not to perform,such an action is a breach of the contract.

If a lessee is insolvent,a lessor can stop a carrier or bailee from delivering the goods regardless of the quantity shipped.

Fact Pattern 21-A1 Internet Cafés,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 assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract. -Refer to Fact Pattern 21-A1.Bagel Bistros's refusal is

A buyer or lessee who has accepted nonconforming goods may keep the goods and recover for any loss resulting in the ordinary course of events.

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

Fact Pattern 21-A1 Internet Cafés,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 assets to Bagel Bistros,Inc.Bagel Bistros refuses to assure Java that it will continue Internet's contract. -Refer to Fact Pattern 21-A1.Java can

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

With an installment contract,a buyer or lessee cab reject an installment on any pretext.

The UCC's good faith provision can never be disclaimed.

Midstates Utility Corporation contracts with North American Energy Company to buy 50,000 gallons of heating oil.North American agrees to deliver the oil in five equal installments between October 1 and the follow?ing March 15.The winter is the warmest on record,however,and after the last agreed delivery,Midstates has accepted only 30,000 gallons of the oil.When North American tenders the rest of the oil,Midstates refuses to take it,citing the weather and claiming to be acting in good faith.Will North American succeed in a suit against Midstates for breach of contract?

The duties and obligations under the terms of a contract include those specified by custom.

Richman Manufacturing Company contracts to sell sweaters to Sweet Sweaters store.Before the sweat?ers are delivered,Sweet Sweaters indicates that it will not be able to pay.Richman can

Owen and Pablo enter into a contract for a sale of fifty Western saddles.Owen does not deliver.Pablo can normally recover as damages the difference between

Consuelo and Gabriela enter into a contract for a sale of saxophones and other brass instruments.Consuelo delivers,but Gabriela does not pay.Consuelo can normally recover as damages

Once the time for performance under a contract has expired,the seller or lessor loses the right to cure.