Lex Bar - Roanoke Essay Flashcards
Article 2 of the Uniform Commercial Code applies to
the sale of goods.
Goods are defined as
“movable things.”
Parties to sales contracts may use terms that are
generally accepted in trade usage, when such terms should reasonably be understood by the parties.
Installment contracts regarding sales of goods are
permitted and regulated by Article 2 of the Uniform Commercial Code.
Where the parties have entered an installment contract, late-delivered goods may be rejected only if
the late delivery substantially impairs the value of the goods.
When the value of goods in an installment contract are substantially impaired due to late delivery, the buyer may
cancel the contract so as not to continue receiving future installments.
If a buyer cancels subsequent deliveries under an installment contract due to late-delivered goods, the buyer must
give notice to the seller of the cancellation within a reasonable time.
Under a breached installment contract, a buyer is entitled to damages, which are calculated as
the difference between the market value of the goods and the contract price, plus lost profits.
When buyers recognize goods will be late in delivery, they may be required to
attempt to mitigate by obtaining the goods elsewhere and selling them.
Where the seller continues to make assurances that the delivery is coming and the contract will be fulfilled, buyers are not required to
cover elsewhere.
A buyer that has accepted non-conforming goods may
keep the goods, attempt to sell them and mitigate any loss, and then recover any loss resulting from the breach, including lost profits.
