4. Performance of Article 2 Contracts Flashcards
What does the perfect tender rule apply to?
The sale of goods
What does perfect tender mean?
The goods and delivery must completely comply with the contract terms.
What results from a less than perfect tender?
A less than perfect tender generally gives the buyer the option to reject the goods so long as the buyer acts in good faith
What obligation does the buyer have once he decides to reject the goods because of less than perfect tender?
The buyer must take reasonable care of the goods and cannot continue to use the goods
When may a seller cure a less than perfect tender?
When:
- Time for performance has not yet expired, or
- In very limited situations, a seller has the option of curing even after the contract delivery date. “Reasonable grounds” is the statutory test. Look for information in the question about prior deals between that buyer and seller.
An installment contract requires or authorizes
- delivery of the goods in separate lots
2. to be separately accepted.
When may a buyer reject an installment?
The buyer has the right to reject an installment only where there is a substantial impairment in that installment that can’t be cured.
If a buyer accepts the goods, can he later reject them?
No
Can there be an acceptance if there has been a payment without an opportunity for inspection?
No
Effect of revocation of acceptance:
Same as rejection of the goods: buyer returns the goods and the seller returns payments made.
Requirements for revocation of acceptance:
- nonconformity substantially impairs the value of the goods, and
- excusable ignorance of grounds for revocation or reasonable reliance on seller’s assurance of satisfaction, and
- revocation within a reasonable time after discovery of nonconformity.
