Performance

Question 1

What is the perfect tender rule under Sale of Goods?

Answer 1

If tender is not perfect, buyer may reject the goods

Question 2

Does the seller have an option to cure if the tender isn’t perfect?

Answer 2

Seller who fails to make perfect tender may have option to cure
Time not expired: seller has option to cure
Time expired: seller has no option to cure unless prior dealings suggest otherwise

Question 3

What is an instalment contract and what does this mean for the perfect tender rule?

Answer 3

Definition: requires or authorizes delivery in separate installments
Buyer may reject only for substantial impairment; no perfect tender rule

Question 4

What is implied acceptance?

Answer 4

Buyer keeps goods without objection after having opportunity to inspect

Question 5

What are the consequences of accepting goods? can you reject?

Answer 5

1. Once buyer accepts, too late for buyer to reject

2. Buyer who accepts can still get damages

Question 6

Can you revoke acceptance of goods?

Answer 6

Generally, buyer cannot revoke acceptance of goods

EXCEPTION: substantial impairment AND difficult to discover (ie, latent defect)

Question 7

What are the remedies of revocation or rejection of acceptance

Answer 7

1. Buyer can return goods to seller at seller’s expense
2. Buyer can get refund of money paid for goods
3. Buyer can get damages from seller for breach

Question 8

What are the buyer’s payment obligations?

Answer 8

Payment by check is fine, but seller need not accept

If check refused, buyer has reasonable time to get cash

Question 9

What is the performance standard under common law contracts?

Answer 9

Need not be perfect, substantial performance is all that is required