SU #18.6

Question 1

Sellers Breaches a contract by

Answer 1

1. Repudiation (renouncing) all of part of the contract
2. Making a nonconforming tender of delivery
3. Failing to deliver conforming goods

Question 2

Buyer’s Rights after sellers non-conforming goods

Answer 2

1. accepting or rejecting the whole

2. accept any commercial unit and reject the rest

Question 3

Buyer remedies when sellers sells non-conforming goods

Answer 3

Right to cover

1. purchase substitute goods in the marketplace
2. Buyer may choose between cover and damages
3. recover any excess of cover price over contract price
4. may have the right to gain possession of goods wrongly held
5. Sue for monetary damages
6. Buyer is entitles to incidental damages
7. Consequential damages (lost profits)
8. Court may order specific performance (when monetary damages are not adequate)

Question 4

Seller’s remedies when buyer breaches contract

Answer 4

1. withhold delivery of goods
2. Identify conforming goods to the contract
3. Recover goods in transit
4. Resell the goods if in possession
5. Recover the price plus incidental damages
6. Seek damages for wrongful repudiation or non-acceptance
7. Cancel the sales contract