Fourth Step: Performance of Art 2 K (6 concepts)

Question 1

what are the 6 things need to know for performance of Art 2 contracts

Answer 1

1) perfect tender
2) rejection of goods
3) cure
4) installment K’s
5) ACCEPTANCE of the goods
6) REVOCATION of acceptance of goods

Question 2

perfect tender rule

Answer 2

1) perfect tender applies to sale of goods
2) perfect tender means that
(a) goods and
(b) delivery MUST COMPLETELY comply with terms of K
3) buyers option of EITHER
(a) keeping the goods and suing for damages OR
(b) sending the goods back, recovering payments made possibly suing for damages

Question 3

what does perfect tender mean

Answer 3

(a) goods and

(b) delivery MUST COMPLETELY comply with terms of K

Question 4

what are B’s options if S failure to make perfect tender

Answer 4

buyers option of EITHER

(a) keeping the goods and suing for damages OR
(b) sending the goods back, recovering payments made possibly suing for damages

Question 5

what 3 things need to know for REJECTION of goods

Answer 5

1) a less than perfect tender gives B option to reject goods so long as good faith
2) B must take REASONABLE CARE of goods and CANNOT CONTINUE TO USE GOODS and
3) option of rejection b/c of a less than perfect tender is limited by the concepts of

(a) cure
(b) installment K and
(c) acceptance

Question 6

when can a buyer reject less than perfect tender

Answer 6

gives B option to reject goods so long as GOOD FAITH

Question 7

during rejection of less than perfect tender can B contiunue to use goods

Answer 7

NO

B must take REASONABLE CARE of goods and CANNOT CONTINUE TO USE GOODS

Question 8

what concepts limit rejection of less than perfect tender

Answer 8

1) cure
2) installment K
3) acceptance

Question 9

when are the 2 times S can CURE their less than perfect tender

Answer 9

1) time for performance has NOT YET expired
2) S has REASONABLE GROUND to believe tender would be acceptable, perhaps with a money allowance
- prior dealings and “reasonable grounds” that tender would be acceptable

Question 10

what is installment K for perfect tender

Answer 10

seller agrees to make multiple performances by seller

Question 11

what is required for installment K

Answer 11

REQUIRES or AUTHORIZES

1) delivery of goods in separate lots
2) to be separately accepted

Question 12

what is the buyers right to reject an installment K

Answer 12

where there is a SUBSTANTIAL IMPAIRMENT in that installment that cannot be cured

Question 13

what is the importance of ACCEPTANCE OF THE GOODS

Answer 13

if the B accepts the goods later, it cannot reject them later

Question 14

is payment W/O OPPORTUNITY for inspection acceptance

Answer 14

NO

- payment WITHOUT opporunity for inspection is not acceptance

Question 15

when must the B reject

Answer 15

rejection must be timely

Question 16

does failing to reject after the B had a reasonble time to reject make acceptance

Answer 16

YES

- if B does not reject w.i reasonable time than acceptance

Question 17

what does it mean if B keeps the goods

Answer 17

RETENTION IS ACCEPTANCE

- B keeping good w/o objection

Question 18

what is REVOCATION of acceptance of goods

Answer 18

where B accepted goods but wants to reject

Question 19

what is the effect of recovcation of acceptance

Answer 19

B returns the goods and S returns the payments

- Limited times B can effect a cancellation of the K by revoking its acceptance of the goods

Question 20

requirements for revocation of acceptance

Answer 20

1) nonformity substantially impairs the value of the goods
- something really wrong, not just perfect tender
2) excusable ignorance of grounds for revocation or reasonable reliance on S’s assurance of satisfactions -
- reason not see earlier
AND
3) revocation w/i reasonable time after discovery of nonconformity
- reject w/i reasonable time of seeing

Question 21

simplfied rule for requirements of revocation of acceptance

Answer 21

1) something really wrong, not just perfect tender
2) reason not see it earlier and
3) reject w.i reasonable time of seeing

Question 22

what page in lecture for break down of all these rules

Answer 22

49

Question 23

what is perfect tender and what does it apply to

Answer 23

UCC

1) the GOOD and their DELIBERY must conform to the contract in every way

Question 24

adequate assurances

Answer 24

Under art II if a party has reasonable ground for insecurity with respect to the other party’s performance (reasonably believes the other party will not perform) he may demand assurances that the performance will be on time.

Question 25

must a demand for adequate assurances be in writing

Answer 25

yes

Question 26

What if a party does not receive adequate assurances when a demand is made

Answer 26

the party can suspend his own performance

Question 27

when must a party give adequate assurances when demand is made

Answer 27

within a reasonable time

Question 28

what happens if adequate assurances are not given within reasonable time

Answer 28

if the proper assurances are not given within a reasonable time, not to exceed 30 days, the party demanding assurances may treat the contract as repudiated