Exam 12: Performance and Breach in Sales and Lease Contracts

If a lessee breaches a contract, the lessor can cancel the contract.

Kramer goes to Lawn & Garden to tune up his mower. Martin, the service tech-ni-cian, learns that Kramer's lawn is overgrown and rocky and advises the use of a certain type of oil, plug, filter, and blade. Later, while Kramer is mowing his lawn, the mower breaks down due to the use of the items recommended by Martin. Kramer may recover from Lawn & Garden for breach of​

With an installment contract, a buyer or lessee can reject a single installment on any pretext.

Beef Burgers, Inc. contracts to buy five hundred head of cattle from Calf & Cow Farms. Before Calf & Cow delivers, an outbreak of disease causes a quarantine of the farm. In this circumstance, the perfect tender rule​

Band Instruments, Inc., sells seventy-six trombones to Community & School Band Source, Inc. To avoid liability for most implied warranties, Band Instruments should state in writing that the trombones are sold​

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Global Talk Corporation sells phones and other mobile devices. Under most circumstances, Global Talk will be presumed to have warranted that its title to the goods is​

Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between​

A buyer's failure to cover will bar him or her from using any other remedies available under the UCC.

When a seller refuses to deliver goods that are unique, a buyer can obtain specific performance.

The principle of good faith applies to both parties to a sales contract.

Promises of fact made during the bargaining process are express warranties.

Hydro Source Company contracts to sell pumps, tanks, and water storage systems to In Flo Irrigation, Inc. Before the goods are delivered, In Flo indicates that it will not be able to pay. Hydro Source can pursue the following relief

Puffery creates an express warranty.

If goods in every respect conform to a contract, the buyer or lessee does not have a right to reject the goods.

Statements of opinion and value usually create express warranties.

Vehicle Wholesale Company and Walt's Retail Motors enter into a contract for a sale of used cars. Vehicle Wholesale assures Walt's that it has valid title to the vehicles. Under the UCC, warranties of title arise​

Statements of fact made during the bargaining process are express warranties.

Precision Parts, Inc., and Quik Fix Auto stores enter into a contract for a sale of specific auto parts. Precision Parts ships parts that do not meet the specifications. With respect to the entire shipment, Quik Fix Auto​

Unless the parties agree otherwise, or for C.O.D. (collect on delivery) transactions, the buyer or lessee has an absolute right to inspect the goods before making payment.