Performance of the Contract Flashcards
What is the perfect tender rule under Article 2?
If tender of the goods is not perfect, the buyer may reject the goods
If tender is not perfect, does the seller have an option to cure?
Yes, if time for performance on the contract has not yet expired.
If time has expired, there is no option to cure unless it is based on prior dealings.
What is an installment contract?
A contract that requires or authorizes delivery in separate installments.
Does the perfect tender rule apply to installment contracts?
No. The buyer may reject the goods only if a particular installment substantially impairs the entire contract.
How does a buyer impliedly accept goods?
When he keeps goods after having a reasonable opportunity to inspect them
What are the consequences of acceptance?
Once a buyer accepts, he may not reject, though damages may still be available.
Can a buyer revoke an acceptance of goods?
Generally no. However, if non-conformity of the goods substantially impairs the value and the defect was difficult to discover, acceptance may be revoked.
What are the consequences of a rejection or revocation of acceptance?
- The buyer may return the goods at the seller’s expense
- The buyer may get back the money paid for the goods
- The buyer can get damages for breach of the contract
Is a seller obligated to accept a check as a form of payment?
No. A seller may accept a check, but is not required. If the seller rejects a check given on the day it’s due, the buyer will have reasonable time to procure cash without being in breach.
Under the common law, is there a perfect tender rule?
No, under the common law, substantial performance is all that’s required.
Is lateness every considered a material breach that, under a common law contract, would excuse performance by the other party?
Not unless the party made clear that “time is of the essence.”
If a buyer has impliedly accepted goods (by having the opportunity to inspect) but those goods are non-conforming (revealed by late inspection), what remedy does the buyer have?
Damages for the non-conformity.
