Silly little UCC provisions

Question 1

609, Assurance

Answer 1

if a party has reasonable grounds for insecurity regarding the other’s performance, she may make a written demand for adequate assurance of performance

Question 2

612, Installments

Answer 2

(1) authorizes the delivery of goods in separate lots to be separately accepted
(2) states that an installment can be rejected due to nonconformity only if the nonconformity impairs the value of the installment and cannot be cured
(3) if the nonconformity in the installment substantially impairs the value of the whole contract, the breach operates as a repudiation/ breach of the whole contract

Question 3

Common Law Consequential Damages

Answer 3

damages that come from special circumstances peculiar to the party (falls under expectation damages)
-typically lost profits
- can only be recovered if at the time of contracting, a reasonable person would have foreseen damages as the probable result of the breach

Question 4

Limitations on damages

Answer 4

-must be proven with reasonably certainty
-Non-breaching party has a duty to mitigate damages
- must be reasonably foreseeable

Question 5

Incidental Damages, Common law

Answer 5

damages that are reasonably incurred in dealing with the breach

Question 6

Liquidated Damages Provisions (common law)

Answer 6

a term under which the parties agree that if a party breaches, he will pay damages in a specified sum; two requirements:
1. reasonable forecast of harm at the time of contracting
2. damages would be too difficult to prove

Question 7

718, liquidated damages

Answer 7

Liquidated damages are permissible under the UCC if they are reasonable in the light of (1) the anticipated or actual harm caused by the breach and (2) the difficulties of proof of loss
(unreasonably large liquidated damages is void as a penalty)

Question 8

710 Seller Incidental Damages

Answer 8

Stopping the delivery of goods, caring and storing the goods, transporting the goods, returning or reselling the goods

Question 9

715 Buyer incidental damages

Answer 9

expenses incurred in: inspection of goods, receipt/transportation/and care of goods rejected, effecting cover

Question 10

715 buyer consequential damages

Answer 10

injury to person or property to due a breach of warranty and any special losses which
(1) the seller knew at the time of contracting and (2) that could not be prevented by cover or otherwise

Question 11

610, Anticapatory Repudiation

Answer 11

when a party repudiates, the non-repudiating party may resort to any remedy under their respective menu

Question 12

611 Retraction of Anticapatory repudiation

Answer 12

Until the repudiating party’s next performance is due he can retract his repudiation unless the aggrieved party has since the repudiation cancelled or materially changed his position or otherwise indicated that he considers the repudiation final.