PERFORMANCE OF THE CONTRACT

Question 1

PERFECT TENDER RULE (ARTICLE 2)

Answer 1

If tender is not perfect, buyer may reject the goods

-NOT applicable to installment contracts

Question 2

OPTION TO CURE (ARTICLE 2)

Answer 2

A seller who fails to make perfect tender may have an option to cure

• If time for performance has EXPIRED: Seller does not generally have an option to cure UNLESS:
  
  • Based on prior dealings, buyer has been flexible about taking non-conforming goods in the past

Question 3

INSTALLMENT CONTRACTS (ARTICLE 2)

Answer 3

Perfect tender rule does NOT apply

RULE: Buyer can reject ONLY for substantial impairment

Question 4

IMPLIED ACCEPTANCE OF GOODS (ARTICLE 2)

Answer 4

Where buyer keeps goods after having an opportunity to inspect them

NOTE: paying for the goods does NOT constitute implied acceptance

• Too late for buyer to reject
• BUT can still get damages for the breach

Question 5

BUYER’S REVOCATION OF ACCEPTANCE OF GOODS (ARTICLE 2)

Answer 5

• Generally, buyer cannot revoke acceptance of goods UNLESS:
• Non-conformity (1) SUBSTANTIALLY IMPAIRS the value of the goods AND (2) was difficult to discover
• Buyer can then revoke within a reasonable period of time after discovering the non-conformity

Question 6

CONSEQUENCES OF BUYER’S REJECTION OR REVOCATION OF ACCEPTANCE

Answer 6

(1) Buyer can RETURN goods at seller’s expense
(2) Buyer can a REFUND of any money buyer has paid for the goods
(3) Buyer can get DAMAGES from seller for breach of K

Question 7

PERFORMANCE UNDER THE COMMON LAW

Answer 7

SUBSTANTIAL PERFORMANCE is all that is required

 i. e. no material breach - Finishing late is generally NOT a material breach unless the K or circumstances indicate that time is of the essence