Sales Flashcards
1
Q
What is anticipatory breach, also known as anticipatory repudiation?
A
A party indicates that s/he will not be performing on the contract, but performance is not yet due.
2
Q
What options does the aggrieved party have when informed of an anticipatory breach?
A
- Treat it as a present breach of contract and use remedies available for breach of contract (sue for damages or cancel the contract)
- Wait for performance for a reasonable time hoping party will change his/her mind
- Demand assurance of performance and treat silence as a breach of contract under UCC
3
Q
What damages may an aggrieved party recover under an anticipatory breach?
A
The buyer may recover damages measured by the difference between the contract price and the market value of the goods at the time the buyer learns of the breach, plus any incidental damages and consequential damages.
4
Q
Explain FOB shipping point.
A
The buyer obtains the risk of loss and title and bears shipping costs once goods are delivered to the carrier.
