Rights and obligations of buyer and seller Flashcards
What rights does a buyer have if the seller breaches the contract
- require proper performance
- avoid the contract
- reduce the contract price
- seek damages
(damages can still be claimed in addition to other rights)
What are the four elements of conformity?
1) quality
2) quantity
3) description
4) packaging
What solutions are available if the seller breaches conformity of goods?
1) buyer can require for goods to be repaired if minor
2) buyer can require for replacement if major`
Seller can seek remedy for failure to perform if?
1) theres no unreasonable delay to buyer
2) buyer isnt unreasonably inconvenienced
What should seller do if they seek remedy for failure to perform?
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
What happens if the seller sends excess goods?
the buyer can either reject the extra or if they decide to keep the extra will have to pay for the extra
When can a buyer avoid a contract?
- if seller is in fundamental breach
- if seller fails to deliver
- if seller cant deliver on contract date or on extension
How is price determined if price is not specified in contract?
it is assumed that price is prevailed at date of contract
How is price of goods determined by weight set
net weight is used (dry unless specified otherwise)
If place of payment is not specified in contract how is it determined?
- at sellers place of business
* when goods are delivered to buyer at place where delivery takes place
If timing of payment is not specified in contract how is it determined?
on delivery of goods after buyer inspects them
What is the Romalpa clause?
title to goods shall not pass until payment has been made
What form of compensation is claimed for damages?
monetary amount for loss suffered
What amount of damages is awarded?
amount which is reasonably foreseeable by breaching party
How would the injured party mitigate loss suffered?
1) selling party should sell goods at reasonable price and claim difference
2) buying party should buy reasonable substitute and claim different
What are the two types of breach of contract?
1) anticipatory breach
2) breach during performance
What is anticipatory breach?
breach before due date of commencement of performance
If it is apparent that the other party can not fulfill a material part of their performance what can be done?
one party can suspend their own performance but must give notice of intention
What can a breach during performance be described as?
a fundamental breach
In an installment contract when can the injured party avoid the contract
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
What is restitution?
to claim of recovery of any goods delivered
What is restitutio in integrum?
is restitution in full.
only available if no third party rights will be adversely affected and full restitution available
What are the three possible ways risk passes from buyer to seller?
1) contracts involving carriage
2) contracts for goods sold in transit
3) contracts not involving carriage
What are unascertained goods?
goods that are not identified at point contract is made