Contracts (Performance)

Question 1

Non-carrier case

Answer 1

Seller has obligation to tender delivery

Question 2

Carrier cases

Answer 2

presumption that the contract is a shipment contract, where the seller need only put the goods in possession of the carrier.

Question 3

FOB [Seller place]

Answer 3

This refers to a shipment contract, where the seller is obligated only to put the goods in the possession of a carrier and make appropriate arrangements for transport.
The risk of loss shifts to buyer after this point.

Question 4

FOB [Buyer place]

Answer 4

This refers to a destination contact, where the seller has agreed to tender the goods at a particular destination.
The risk of loss shifts to buyer after tender at this destination point.

Question 5

Modification

Answer 5

In Common law contracts, consideration is required to support a modification (increased compensation requires both parties agreeing to a differed performance).
Modernly, modifications are okay if fair and reasonable.
Under the UCC, an agreement modifying an existing contract for the sale of goods needs no consideration (just good faith)

Question 6

Accord and satisfaction

Answer 6

An accord is where the parties make an arrangement for substituted performance in light of problems. Satisfaction, the performance of this substituted performance, will discharge the original duty.

Question 7

Failed Condition (Common Law)

Answer 7

failure of a condition upon which performance is based will discharge the party’s obligation

Question 8

Failed Condition (UCC)

Answer 8

the seller must make perfect tender of the goods. Otherwise, the buyer may either reject/accept all or part of the shipped goods (and may seek damages for what he hasn’t received)