Performance Flashcards
What is the perfect tender role and does it apply to the sale of goods and/or sale of services?
The perfect under rule means that the goods and delivery must completely comply with the contract terms. It only applies to the sale of goods (UCC)
For an instalment contract when with the delivery not comply with the perfect tender rule?
Generally it is assumed that for instalment contracts the seller will have multiple opportunities to deliver, so it is less of an issue that tender is perfect on one occasion. The contract will only be breached if there is a substantial impairment.
If the seller does not comply with the perfect tender role, do they have an opportunity to cure the breach?
Yes, The buyer must give the seller the opportunity to cure when the delivery time has not yet elapsed
When might a seller be able to cure the contract performance after the time period for delivery has elapsed?
If the seller reasonably believed that the nonconforming goods would be acceptable to the buyer with or without money allowances
When might the seller have reasonable grounds to believe that the goods he provided would be acceptable to the buyer (even if not perfect tender)?
The buyer previously accepted the items without them being perfect tender
The buyer receives a less than perfect tender of goods, what are the three options?
- The buyer may reject all of the goods provided he is acting in good faith
- The buyer may accept the goods (but cannot reject them later)
- The buyer can accept any units of the goods and reject the rest
How might a buyer accept nonconforming goods without expressly admitting the same to the seller?
- By holding onto the goods for a period of time
– failing to seasonably notify the seller of their rejection
– anything inconsistent with the sellers ownership
– the payment without opportunity to inspect the goods is not acceptance
