Performance and Breach Flashcards
In an installment contract situation, an installment can be rejected by the buyer __________.
if there is a nonconformity that substantially impairs the value of that installment and cannot be cured
In a destination contract, the seller must:
Tender delivery of the goods at a particular destination
The U.C.C. gives a seller the right to cure a defective shipment within a reasonable time beyond the original time for performance in the contract if:
Prior dealings with the buyer led the seller to reasonably believe that the defective shipment would be acceptable
When should the nonbreaching party treat an otherwise minor breach as a material breach?
When the breach is coupled with an anticipatory repudiation
What is a buyer’s right of rejection concerning defective shipments under U.C.C. Article 2?
A buyer can always reject a defective shipment in a single delivery contract but cannot reject a defective shipment in an installment contract if the defect can be cured
Under Article 2, a buyer can accept goods by:
Affirmatively accepting the goods, failing to reject the goods within a reasonable time, or doing any act inconsistent with the seller’s ownership
When a seller has agreed to tender goods at a particular location, this is also known as a:
Destination contract.
Under Article 2, a defective shipment in an installment contract cannot be rejected __________.
if the defect can be cured.
Under Article 2, unless the contract provides otherwise, a buyer has a right to inspect the goods __________.
at the buyer’s own expense before she pays for the goods
Under a U.C.C. Article 2 shipment contract, the seller’s obligation of tender and delivery is fulfilled when the seller puts the goods in the hands of a reasonable carrier, obtains and tenders any documents necessary to enable the buyer to take possession, and _________.
Promptly notifies the buyer of the shipment
Under the U.C.C., what is required to cure a defective delivery in a single delivery contract?
Reasonable notice of the intention to cure and a new tender of delivery of conforming goods within the time for performance
Characterize a shipment and a destination contracts fulfillment policies.
In a shipment contract, the price is due when the goods are put in the hands of the carrier, and in a destination contract, the price is due when the goods reach the named destination.
When a party performs by delivering exactly as promised in the contract, that performance has satisfied the Article 2 requirement of __________.
Perfect Tender
Unless the contract provides otherwise, in a destination contract, payment is due __________.
When the goods reach their destination.
Under Article 2, a buyer’s right to reject is cut off by __________.
Acceptance of the goods, even if the goods are nonconforming
If a seller gives no instructions within a reasonable time after notification of rejection, the buyer may _________________ the goods.
Reship, store, or resell
A breach of contract where the obligee gains the substantial benefit of her bargain despite the obligor’s defective performance is commonly known as:
A minor breach
Under U.C.C. Article 2, unless the contract provides otherwise, any expenses for inspection of the goods sold will be borne by:
The buyer, but may be recovered from the seller if the goods do not conform and are rejected
Generally speaking, if a contract does not address the importance of timeliness of performance in its terms, a failure by the promisor to perform at the time stated in the contract will result in __________.
A minor breach of contract.
After a reasonable time, a buyer may resell rejected goods only if:
the buyer holds the proceeds for the seller’s account
In a noncarrier case, for proper tender of delivery, the seller must:
Put and hold the goods at the buyer’s disposition for a time sufficient for the buyer to take possession and give the buyer reasonable notice to enable the buyer to take possession of the goods
Under a U.C.C. Article 2 shipment contract, the seller need not ___________ but must ___________.
See that the goods reach the buyer; promptly notify the buyer of the shipment
Under Article 2, in a noncarrier case, in the absence of an agreement otherwise, the place of delivery is generally__________.
the seller’s place of business.
