Performance Flashcards
UCC Perfect Tender
Delivery and condition of the goods MUST BE EXACTLY as promised in the contract
Common Law Performance
Substantially perform all that is called for in the contract
Rejection of Goods
Must occur BEFORE ACCEPTANCE OF THE GOODS
if goods are less than perfect buyer has option of rejection Unless the contract is an installment contract or seller can CURE
Cure
Seller fails to make perfect tender, MAY be given a second chance to cure.
Not every seller has a right to cure/ BUYER CANNOT COMPEL CURE
Time fore Performance has Expired. Cure?
If seller had reasonable grounds to believe that tender would be acceptable.
Reasonable time to cure
Time for Performance Has NOT EXPIRED. Cure?
Sell can always cure up until the deadline
Installment Sales Contracts
Requires OR authorizes, delivery in separate lots, to be separately accepted.
Rejection of Installment Contracts
Buyer has a right to reject ONLY IF THERE IS A SUBSTANTIAL IMPAIRMENT in that installment that CANNOT BE CURED
Methods of Acceptance of Goods
Express Acceptance
Implied Acceptance: Retention of Goods after an opportunity for inspection WITHOUT Objection
NOT ACCEPTANCE: if payment has been made without an opportunity of inspection
Revocation of Acceptance of Goods
Buyer can effect a cancellation of the contract BY REVOKING its acceptance of the goods
Requirements for Revocation of Acceptance
NonConformity that SUBSTANTIALLY IMPAIRS value AND;
EXCUSABLE IGNORANCE on the grounds for revocation or reasonable reliance on the seller’s assurance or satisfaction AND;
revocation is made within a reasonable time AFTER DISCOVERY of NONCONFORMITY.
Payment Concepts
Cash unless otherwise Agreed; Checks are Ok; Seller can reject the acceptance of a check, but must give buyer time to get cash.
