Exam 14: Performance Breach of Sales Lease Contracts

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

In general,a buyer's duty to pay for tendered goods becomes absolute before the buyer has had an opportunity to inspect the goods.

Clear Day Company,which is based in Delaware,agrees to sell fifty windows,currently stored in Florida,to Great Vu,Inc. ,which is based in Hawaii.Absent an agreement to the contrary,the place of delivery is in

Hi-Tech Company contracts to sell fiber optic cable to Internet Services,Inc.Hi-Tech may bring an action to recover the purchase price and incidental damages if Internet

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?

An unpaid seller can bring an action to recover the purchase price,on the buyer's breach of a contract,only if the goods are first disposed of.

Pep Paints agrees to sell to Quality Painters Grade A-1 latex outdoor paint to be delivered May 8.On May 7,Pep tenders Grade B-2 paint.Quality rejects the Grade B-2 paint.Two days later,Pep tenders Grade C-3 paint with an offer of a price allowance.Pep has

Loni and Myra enter into a contract for a sale of clarinets and other wind instruments.Loni delivers,but Myra does not pay.Loni can normally recover as damages the difference between

If the parties to a sales contract state that a certain remedy is exclusive,then it is the sole remedy.

If a buyer breaches a contract while the seller is still in possession of the goods,the seller can resell the goods and hold the buyer liable for any loss.

International Gem Corporation agrees to sell Jewel Outlets,Inc.(JOI),fifty new diamonds,but the contract does not specify a place of delivery.JOI is expected to pick up the goods.The place of delivery is

A buyer who accepts nonconforming goods cannot revoke the acceptance.

Citrus Groves contracts with four food companies to sell its entire crop of oranges.When half of the crop is lost to an unexpected insect infestation,Citrus must

If a nonconforming installment substantially impairs the value of a whole contract,the buyer can treat the entire contract as having been breached.

Relax Chair Company contracts to deliver 100 chairs to Stuffy Furnishings Store on May 1 for which Stuffy agrees to pay.Relax tells Stuffy on April 15 that delivery will be delayed until June 1.Stuffy may

Bayou Boats,Inc. ,and Eventide Fishing Tours enter into a contract for a sale of seven swamp boats.Eventide pays for the goods,but Bayou does not deliver.Eventide can use replevin as a remedy if

If a buyer breaches a contract and the seller resells the goods to another party,the seller cannot recover any loss from the breaching buyer.

Fact Pattern 14-1 Internet Cafes, Inc., contracts to buy all of its requirements for coffee, at a minimum of 1 million pounds per year, from Java Corporation for six years. After three years, Internet tells Java that it plans to sell its company to Kwik Eateries, Inc. Kwik refuses to assure Java that it will continue Internet’s contract. -Refer to Fact Pattern 14-1.Java can

Regal Manufacturing Company contracts to sell sweaters to Superb Styles Store.Before the sweaters are delivered,Superb indicates that it will not be able to pay.Regal can resell the goods

A seller can terminate a contract on the basis of commercial impracticability if increases in the seller's costs threaten to undercut its profits.