Exam 22: 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

If goods fail to conform to a contract in any way, the buyer or lessee must reject them.

Quincy buys a car under a warranty from Ride Motors. Quincy soon discovers that the car has a defect that significantly affects its value and use. In all states and the District of Columbia, Quincy may have remedies under

Vehicle Leasing Agency (VLA) and Wander Trucking Company enter into a contract for a lease of eight cargo vans. VLA delivers eight vans, but they are not cargo-sized. Wander

Food Packaging, Inc., agrees to sell 50,000 6-ounce yogurt containers to Golden Dairy Company. Food can obtain only 20,000 of the 6-ounce contain?ers, but also ships 30,000 more expensive 8-ounce containers for the same price. Under these circumstances, Golden

A lessor's failure to make proper delivery of unique goods under a con?tract will not usu?ally give the lessee the right to specific performance.

Under the UCC, an innocent party to a breached sales or lease contract is not limited to one exclusive remedy.

An installment contract is breached if a seller tenders any nonconforming goods.

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

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

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

According the court in Case 22.1, Maple Farms, Inc. v. City School District of Elmira, the defense of commercial impracticability will not excuse the performance of a contractual obligation when there is an increase in the seller's costs while the contract is in force

If a buyer repudiates a contract, the seller cannot re?cover damages.

Owen and Pablo enter into a contract for a sale of fifty Western saddles. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between

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

Price-Cut Discount Stores are open to consumers. The UCC requirement of good faith imposes

If a lessor's tender of delivery fails to conform to a contract in any way, the lessee can reject the goods.

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.

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