Risk of loss in sale of goods

Question 1

if damages before buyer gets them at no fault of either party

Answer 1

seller bears risk - seller must provide new goods to buyer for no additional price or he’s in breach

buyer bears risk - buyer must still pay K price

Question 2

If one party breaches

Answer 2

the breaching party bears teh risk

Question 3

delivery by common carrier

Answer 3

risk of loss shifts to buyer when seller completes it delivery obligatiosn

1. shipment contract - seller must get the goods to a common carrier, amke delivery arrangements and notify buyer and then the risk shifts to buyer (FOB seller city name)
2. destination contract - seller must get goods all the way to a specific destination before buyer bears risk (FOB another city)

shipment contract is presumed.

Question 4

non-carrier cases

Answer 4

merchant seller - seller bears risk of loss until buyer tkaes possession

non-merchant seller- buy bears risk of loss once seller “tenders the goods (makes avialable)

Question 5

performacne CLAW

Answer 5

only substnatial performacne is required (cannot be in material breach) (essentialy purpose of K)

Question 6

performance Art 2

Answer 6

perfect tender rule - seller must deliver perfect goodsin the right place at the right time. if not 100% perfect, buyer has right to reject

option to cure - will depend on if the tiem for performance has not expired. If time has expired there is not an option to cure unless has reaonsable ground fo thinking that improper tender would be accepted

Question 7

installment contracts

Answer 7

substantial impairment rule - buyer may only rject for substantial impairment (not perfect tender)

installment K requires or authorizes seller to deliver in separate installments

if buyer keeps goods for a reasonable period of time and has opportunity to inspect, that acts at acceptance

consequences - cannot reject but can get damages

Question 8

revoking acceptance of goods

Answer 8

only possible if non-conformity substantially impairs the avalue of the goods and it was difficult to discovera