Exam 16: Breach and Remedies in a Sales Transaction

If a buyer subsequently accepts a nonconforming installment of the goods and does not notify the seller that she is canceling the contract, the UCC provides that the seller may assume the contract to be __________.

The parties __________ add a liquidated damages provision to define and limit the amount of monetary damages in the event of a breach.

The buyer's primary obligation to pay is triggered when the seller creates a contract for conforming goods.

In an installment contract, the buyer may __________ an installment only if the nonconformity substantially impairs the value of that installment and the nonconformity cannot be cured.

There are four critical dates that impact the rights and duties of the buyer or seller and the availability of remedies to either of them. These dates establish four general time periods that impact the duties, rights, and remedies available to the buyer or the seller. Explain in detail below what they are and what they mean.

When there is a __________, the seller does not retain any ties to the goods.

Liquidated damages clauses __________ be enforced if the amount is unreasonably high and functions as a penalty.

Southeastern Supplies (SS) is a manufacturer and supplier of office equipment. SS contracts to sell University of Florida (UF), a local university, 5,000 UF Gator mousepads at $10 per mousepad for delivery on August 1 and payment of $100,000 due upon delivery. On July 19, UF receives 5,000 Florida State University mousepads. SS has the right to:

If a buyer accepts conforming goods delivered by the seller and simply does not pay for them as required in the contract, what is most likely to happen? The seller can:

A buyer may incur incidental and __________ damages at any point due to the seller's breach.

Liquidated damages are damages that the parties expressly define in the contract and agree will compensate the nonbreaching party.

T.T. Inc. creates and sells hats. The Local Ironworkers 452 have contracted with T.T. Inc to purchase 150,000 hats for $15,000 with a delivery date of July 1. Local Ironworkers 452 paid a $5,000 deposit upon signing the contract, with the remaining $10,000 balance due when the hats are delivered. In the contract, Local Ironworkers 452 specified that "time is of the essence due to a local union campaign." Local Ironworkers 452 has reason to believe from another local chapter that there was an issue in the hats arriving a day after an important rally. After requesting reassurances, T.T. Inc. fails to respond within 35 days. T.T. Inc. has also not been taking recent orders in the area. What are the options available at this time to Local Ironworkers 452?

A buyer can accept one installment without giving up the right to reject any additional installments that are nonconforming which is an exception to:

A contractual remedy in which the court orders a party to actually perform its promise as closely as possible, because monetary damages are somehow inadequate to fix the harm is known as:

What are the opportunities to obtain relief in breach of contract situations?

T.T. Inc. creates and sells hats. The Local Ironworkers 452 have contracted with T.T. Inc to purchase 150,000 hats for $15,000 with a delivery date of July 1. Local Ironworkers 452 paid a $5,000 deposit upon signing the contract, with the remaining $10,000 balance due when the hats are delivered. In the contract, Local Ironworkers 452 specified that "time is of the essence due to a local union campaign." Local Ironworkers 452 has reason to believe from another local chapter that there was an issue in the hats arriving a day after an important rally. What is/are Local Ironworkers 452's option(s)?

Any deviation from what was agreed upon will trigger what is known as a breach of __________.

The opportunities to obtain relief are called remedies, judicial actions, which can be monetary or equitable, taken by courts that are intended to compensate an injured party in a civil lawsuit.

When a buyer rejects nonconforming goods and purchases the appropriate goods from a different seller, the buyer is said to be covering.