Ch.24

Question 1

What is/are the goal/s or remedies for Goods Contracts?

Answer 1

“To fulfill the expectations and intentions of the parties to agreement and give them the ‘benefit of the bargain’ they negotiated”

Question 2

When do breaches occur?

Answer 2

When all rights of the parties are exhausted and the goods are still not conforming goods

Question 3

What are the obligations of the parties?

Answer 3

Sellers are required to deliver conforming goods (Perfect Tender Rule)

Buyers are required to accept and pay for conforming goods

Question 4

What are the rights of the parties?

Answer 4

Seller has the right to cure

Buyer has the right to inspect

Question 5

When do we start talking about remedies?

Answer 5

Remedies do not get discussed until a breach occurs

Question 6

What are the remedies prior to delivery?

Answer 6

If there is condition that needs be fulfilled prior to delivery, Seller may:

• Cancel Contract
• Stop Delivery
• Resale

Question 7

What are the remedies after delivery?

Answer 7

Sue for price

Sue to reclaim goods

Question 8

What is the effect of Resale?

Answer 8

Sellers allowed to sell the goods to another buyer or dispose of the goods when buyer is in breach and goods not delivered

Question 9

When are liquidated damages specified?

Answer 9

Before the breach occurs and is in the contract

Question 10

What are Buyers’ remedies prior to delivery?

Answer 10

• Cancel contract
• Sue to recover damages
• Recover the goods
• Obtain specific performance

Question 11

What are the Buyers’ remedies after delivery?

Answer 11

• Reject nonconforming goods
• Revoke acceptance of nonconforming goods
• Accept nonconforming goods and seek damages

Question 12

When would a buyer sue to recover damages?

Answer 12

• If the Buyer had to purchase substitute goods because of Seller breach (Buyer notified
  Seller goods were nonconforming and Sellers’ right to Cure has passed).

Question 13

How do Buyers recover damages?

Answer 13

Process called Cover.

Question 14

How does cover work? Buyer must:

Answer 14

• Demonstrate good faith in obtaining substitute goods
• Pay reasonable amount for substitute goods
• Act without unreasonable delay in purchasing substitute goods
• Purchase goods that are reasonable substitutes

Question 15

Who upholds modifications/limitations to remedies unless remedies fail in their essential purpose?

Answer 15

the court

Question 16

Parties to sales contracts are allowed to

Answer 16

modify/limit remedies