Exam 18: Remedies for Breach of Sales and Lease Contracts

Andrew contracts Goldflour Breads to purchase 10 pounds of flour at $4 per pound.The contract states that delivery is to occur on July 1.On this date,the market price of flour is $6 per pound.Goldflour Breads is unable to make the delivery on July 1.Apart from incidental and consequential damages,less expenses saved,the damages Andrew can recover from Goldflour Breads is ________.

Which of the following is a right to remedy that a seller can claim while the goods are in possession of the buyer?

Define the lessee's right to cover and analyze its importance in contract law.

If the lessee repudiates the contract while the goods are in the process of being transported to the lessor,the lessor has the ________.

Discuss the different circumstances under which right to stop delivery of goods in transit can be exercised.

Any lessee who rightfully rejects goods is entitled to reimbursement from the lessor for reasonable expenses incurred.

The obligation of a seller to transfer and deliver goods to the buyer or lessee in accordance with a sales or lease contract is defined as ________.

Calibrato Instruments contracts Stronghold Metals to purchase stainless steel in bulk to manufacture tachometers.Stronghold Metals fails to transport the goods to Calibrato Instruments on the delivery date.Which of the following rights can Calibrato Instruments exercise in order to gain legal recourse?

________ is an action a party to a sales or lease contract is required by law to carry out.

Klint Microsystems,a microprocessor manufacturer,was contracted by Zeitar Studios to manufacture specially designed microchips.Zeitar was to pay Klint $300,000 as per the contract.While the finished microchips were being shipped via a carrier,Klint was informed of Zeitar's insolvency.Klint cancelled the shipment before it was delivered.Klint then resold the chips to another studio.What right to remedy did Klint exercise when they stopped shipment to Zeitar?

Examine,with an example,the modification in the perfect tender rule when applied to installment contracts.

A sales contract that requires the seller to deliver the goods to the buyer's place of business or another specified location is defined as a destination contract.

The destination contract differs from the shipment contract in that the destination contract ________.

Klint Microsystems,a microprocessor manufacturer,was contracted by Zeitar Studios to manufacture specially designed microchips.Zeitar was to pay Klint $300,000 as per the contract.While the finished microchips were being shipped via a carrier,Klint was informed of Zeitar's insolvency.Klint cancelled the shipment before it was delivered.Klint then resold the chips to another studio.What right to remedy did Klint exercise when selling the microchips to another studio?

The seller's or lessor's general obligation is to accept and pay for the goods.

A(n)________ can be obtained in writing from the other party if there is an indication that a contract will be breached by that party.

Analyze the concept of acceptance in terms of contract law.

The ________ is the right of a lessor to resell or release goods in a good faith and commercially reasonable manner.

A sales contract that requires the seller to send the goods to the buyer but not to a specifically named destination is termed as a shipment contract.

Which of the following is true of a shipment contract?