Exam 15: Performance and Breach of Sales and Lease Contracts

Mineral Resource Company contracts to provide several manufacturers with tin.When a cartel of tin-producing countries suddenly embargoes future shipments of tin to Mineral Resource so that it cannot fulfill its contracts,the distributor

If goods identified to a contract are destroyed through no fault of either party,both parties are excused from performance.

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 A.m.

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

Until the time for performance under a contract expires,the seller has a right to cure.

If a buyer wrongfully refuses to accept goods that conform to a contract,the seller can recover damages.

Silas Paving Co.contracts to buy some construction machinery from Massive Earthmovers,Inc.Before either party performs,Massive sells its assets to Phoenix Equipment Corp.On learning of the sale,Silas is concerned about its contract with Massive.Silas should

Colby contracts in writing to sell his 2005 Dodge-brand pick-up truck to Efrem for $10,500.Colby agrees to deliver the truck on Friday,and Efrem promises to pay the $10,500 on the following Monday.On Thursday,Efrem tells Colby that he changed his mind and will not buy the truck.Over the weekend,Efrem changes his mind again and tenders $10,500 to Colby on Monday.Colby has not sold the truck to another party but refuses the tender and refuses to deliver.Efrem claims that Colby has breached their contract.Colby contends that Efrem's repudiation released him from his duty to perform under the contract.Who is correct,and why?

Elegant Carpets,Inc.,and Fantastic Floors Stores enter into a contract for a sale of carpeting.Under a shipment contract,the seller must

Leatherbound Stores,Inc.,rejects a shipment of goods that does not conform to its contract with Cowhide Corporation,but is unable to obtain instructions from the seller.Leatherbound may

Pine Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of plywood.Under a destination contract,the seller must

There are no circumstances under which a contract can be tendered by multiple deliveries of goods.

Sally's Sweet Fruits contracts with Fruits to You,Inc.for a delivery of two hundred pounds of strawberries to be delivered by Keep Kool Trucking,a trucking company with refrigerated trucks.On the day of delivery,the refrigeration units on Keep Kool's trucks are not working.Fruits to You

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

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.

Noni and Myra enter into a contract for a sale of clarinets and other wind instruments.Noni does not deliver.Myra can normally recover as damages the difference between

The duty of good faith is imposed on the parties involved in commercial contracts by the Uniform Commercial Code.

Under the UCC,there are no exceptions to the perfect tender rule.

Under the UCC,parties to a contract cannot limit or exclude consequential damages.

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