Rights and obligations of buyer and seller

Question 1

What rights does a buyer have if the seller breaches the contract

Answer 1

• require proper performance
• avoid the contract
• reduce the contract price
• seek damages
  (damages can still be claimed in addition to other rights)

Question 2

What are the four elements of conformity?

Answer 2

1) quality
2) quantity
3) description
4) packaging

Question 3

What solutions are available if the seller breaches conformity of goods?

Answer 3

1) buyer can require for goods to be repaired if minor

2) buyer can require for replacement if major`

Question 4

Seller can seek remedy for failure to perform if?

Answer 4

1) theres no unreasonable delay to buyer

2) buyer isnt unreasonably inconvenienced

Question 5

What should seller do if they seek remedy for failure to perform?

Answer 5

seller has to notify buyer of intention of remedy, and buyer should contact seller to show acceptance of late performance. if buyer doesn’t reply seller can assume its accepted

Question 6

What happens if the seller sends excess goods?

Answer 6

the buyer can either reject the extra or if they decide to keep the extra will have to pay for the extra

Question 7

When can a buyer avoid a contract?

Answer 7

• if seller is in fundamental breach
• if seller fails to deliver
• if seller cant deliver on contract date or on extension

Question 8

How is price determined if price is not specified in contract?

Answer 8

it is assumed that price is prevailed at date of contract

Question 9

How is price of goods determined by weight set

Answer 9

net weight is used (dry unless specified otherwise)

Question 10

If place of payment is not specified in contract how is it determined?

Answer 10

• at sellers place of business

* when goods are delivered to buyer at place where delivery takes place

Question 11

If timing of payment is not specified in contract how is it determined?

Answer 11

on delivery of goods after buyer inspects them

Question 12

What is the Romalpa clause?

Answer 12

title to goods shall not pass until payment has been made

Question 13

What form of compensation is claimed for damages?

Answer 13

monetary amount for loss suffered

Question 14

What amount of damages is awarded?

Answer 14

amount which is reasonably foreseeable by breaching party

Question 15

How would the injured party mitigate loss suffered?

Answer 15

1) selling party should sell goods at reasonable price and claim difference
2) buying party should buy reasonable substitute and claim different

Question 16

What are the two types of breach of contract?

Answer 16

1) anticipatory breach

2) breach during performance

Question 17

What is anticipatory breach?

Answer 17

breach before due date of commencement of performance

Question 18

If it is apparent that the other party can not fulfill a material part of their performance what can be done?

Answer 18

one party can suspend their own performance but must give notice of intention

Question 19

What can a breach during performance be described as?

Answer 19

a fundamental breach

Question 20

In an installment contract when can the injured party avoid the contract

Answer 20

if the first installment is in breach then contract can be avoided however if first few comply but later breach then damages or replacement can only be claimed

Question 21

What is restitution?

Answer 21

to claim of recovery of any goods delivered

Question 22

What is restitutio in integrum?

Answer 22

is restitution in full.

only available if no third party rights will be adversely affected and full restitution available

Question 23

What are the three possible ways risk passes from buyer to seller?

Answer 23

1) contracts involving carriage
2) contracts for goods sold in transit
3) contracts not involving carriage

Question 24

What are unascertained goods?

Answer 24

goods that are not identified at point contract is made

Question 25

if goods are unascertained at start of contract how are they treated through out the contract?

Answer 25

the same right the way through

Question 26

When does risk in unascertained goods pass?

Answer 26

when they are unconditionally appropriated and buyer is informed

Question 27

What is unconditionally appropriated goods?

Answer 27

when goods are specifically and clearly marked with who they are allocated to (receiver)

Question 28

When does risk pass in specific goods involving carriage that is not specified in contract?

Answer 28

When goods are handed over to carrier or first carrier if involving more than one

Question 29

When does risk pass when goods are sold in transit?

Answer 29

Risk passes at time contract is entered

Question 30

If the seller is aware goods are damaged during or before transit but are sold during transit who takes responsibility?

Answer 30

seller is responsible because he was aware

Question 31

When does risk pass in goods that dont involve carriage?

Answer 31

from the time goods are put at disposal of buyer and the buyer has been informed

Question 32

Who has the duty to preserve goods?

Answer 32

who ever is in possession of the goods

Question 33

If a buyer refuses to accept a delivery who’s duty is it to preserve goods?

Answer 33

the seller

Question 34

If the buyer is supposed to pay for goods on delivery but fails to, who’s duty is it to preserve the goods?

Answer 34

the seller

Question 35

If the buyer intends to reject goods but the seller is not available to accept rejection, who’s duty is it to preserve goods?

Answer 35

the buyer

Question 36

Who pays for the preservation of goods

Answer 36

reasonable expenses can be recovered from other party

Question 37

Can person in possession of perishable goods sell them on?

Answer 37

they can be sold at best price available before they become worthless

Question 38

What is an impediment of contract?

Answer 38

when something gets in the way of the contract, usually something out of ones control

Question 39

If a party is failing to perform due to an impediment what must they do?

Answer 39

notify the other party as soon as possible once they know of the impediment