Exam 19: Performance and Breach

Steel Buildings, Inc., agrees to sell four air compressors to Truck Service Center. Five days later, the buyer refuses delivery and cancels the contract. The seller is entitled to

When a buyer recovers damages for a seller's breach, the correct calculation is the difference between the contract amount and the market value of the goods at the location of the delivery at the time the buyer learned of the breach.

The perfect tender rule requires that goods conform exactly to a contract's terms or the buyer is in breach.

If one party to a contract has "reasonable grounds" to believe that the other party will not perform as contracted, he or she can demand in writing assurance of performance from the other party.

Pavers Inc. contracts to sell some heavy equipment to Earthmovers, Inc. Before either party performs, Pavers, Inc. sees an article in a local paper about a possible Earthmovers bankruptcy. On learning this, Pavers is concerned about its contract with Earthmovers. Pavers should

Field Farms and Gourmet Restaurant enter into a contract for a sale of lettuce. After Field Farms ships the lettuce but before the restaurant receives it, Gourmet goes out of business and sends notice to Field that it won't be paying for the lettuce. Field

River Gear Company and Scenic Trips, Inc., enter into a contract on August 1 for the sale of fifty inflatable river rafts. Scenic cancels the contract ten days later. River Gear is unable to sell the rafts to another buyer. River Gear can

The basic obligation of commercial reasonableness underlies every contract under the Uniform Commercial Code.

Revocation of acceptance is not allowed if a buyer accepted nonconforming goods based on a reasonable assumption that the seller would cure the defect.

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

In carrier cases, the seller can fulfill the obligation to deliver the goods only through a shipment contract.

Open-Air Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Open-Air Markets can