Exam 20: Performance and Breach

If a seller repudiates a contract,the buyer's damages do not have to be adjusted to reflect any expenses that were saved as a result of the breach.

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

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

If a seller discovers that the buyer has received goods on credit and is insolvent,the seller can only demand the return of the goods if he or she does so on the same day that the buyer received the goods.

Once the time for performance under the contract has expired,the seller or lessor can never exercise the right to cure.

Under the UCC,if a contract does not designate the place of delivery for the goods,and the buyer is expected to pick them up,then the place of delivery must be at a location halfway between the seller's place of business and the buyer's place of business.

If a seller asks a buyer to store nonconforming goods overnight,then the buyer is entitled to reimbursement for the costs involved.

The doctrine of commercial impracticability only extends to problems that are unforeseen.

The obligation of good faith underlies every contract under the Uniform Commercial Code.

If a lessee wrongfully refuses to accept goods that conform to a contract,the lessor must tender substitute goods.

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

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

A buyer may reject a seller's goods under any circumstances.

Garden Field Farms and Haute Gourmet Restaurant,Inc.,enter into a con?tract for a sale of lettuce before Haute Gourmet becomes insolvent.Garden Field can stop delivery of the goods in transit

Tender of delivery requires that the seller or lessor hold the goods at the buyer's or lessee's disposal,but not that the goods be conforming.

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.

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.

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?

The term cure refers to the right of the buyer to reject,adjust,or replace nonconforming goods.

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