Exam 20: Performance and Breach

Business Rental Corporation (BRC)and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts.Under the perfect tender rule,BRC must ship or tender goods to the lessee that​ 

Levi's Toy Store orders one hundred board games from Big Board Games Warehouse.When the games are delivered,they are all missing pieces.Levi's Toy Store rejects the shipment.Big Board Games wants to cure.Big Board Games must​ 

Beef Burgers,Inc.contracts to buy five hundred steers from Fattening Feedlots.Before Fattening Feedlots can deliver the steers,there is an outbreak of disease in the feedlot,and all the cattle are quarantined.In this case the perfect tender rule​ 

Fuel Connector Products,Inc.,agrees to sell Go-Flo,Inc.,a certain quantity of hose couplings and fittings,but the contract does not specify a place of delivery.Go-Flo is expected to pick up the goods.The place of delivery is​ 

Tender must occur at a reasonable hour and in a reasonable manner. 

Screen Perfect,Inc.,and TV Stores enter into a contract for a sale of high-definition television sets.Screen Perfect ships goods that do not exactly conform to the contract in some details.TV Stores​ 

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

If,before the time for performance,a buyer communicates an intent not to perform,the seller can consider the buyer in breach and pursue a remedy.

Big Eggs,Inc.agrees to supply Omelet Express with five hundred eggs.Big Eggs cannot reasonably ask Omelet Express to pick up the eggs at​ 

If a seller fails to deliver the goods,the buyer's damages do not include all losses resulting from this course of events. 

Acceptance of goods precludes the buyer or lessee from exercising the right of rejection. 

If either the goods or their tender fails to conform to the contract in any respect,the buyer or lessee must reject all of the goods. 

If a contract specifies a certain carrier,a substitution of a different carrier for any reason breaches the contract. 

Garden Field Farms and Haute Gourmet Restaurant,Inc.,enter into a contract for a sale of lettuce.After Garden Field ships the lettuce but before Haute Gourmet receives it,the buyer declares bankruptcy.Garden Field can stop delivery of the goods in transit​ 

A shipment contract requires a seller to ship goods by a carrier. 

In contracts involving a carrier,a seller can complete performance through a shipment contract or a destination contract. 

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact,but may not seek damages. 

On January 10,Winchester Pet Supplies orders fifty small dog collars from Quality Collars,Inc.to be delivered by January 15.On January 13,Quality Collars tenders fifty large dog collars.Winchester Pet Supplies rejects the shipment.Quality Collars has​ 

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

Signal Sets Company contracts to deliver one hundred 52-inch plasma high-definition television sets to a new retail customer,Tuner TV Store,on May 1,with payment to be made on delivery.Signal tenders delivery in its own truck.Tuner's manager notices that some of the cartons have scrape marks.Tuner's owner phones Signal's office and asks whether the sets might have been damaged as they were being loaded.Signal assures Tuner that the sets are in perfect condition.Tuner tenders Signal a check,which Signal refuses,claiming that the first delivery to new customers is always for cash.Tuner promises to pay the cash within two days.Signal leaves the sets with Tuner,which stores them in its warehouse pending its "Grand Opening Sale" on May 15.Two days later,Tuner's stocker opens some of the cartons and discovers that a number of the sets are damaged beyond ordinary repair.Signal claims Tuner has accepted the sets and is in breach by not paying on delivery.Will Signal succeed on these claims? Explain.