Contracts 4.txt

The flashcards below were created by user twiggy924 on FreezingBlue Flashcards.

  1. Under the COMMON LAW, is a promisee entitled to PEFECT performance?
    NO—only SUBSTANTIAL PERFORMANCE (i.e., no material breach)

    Finishing a job late is NOT a material breach unless K or circumstances indicate that time is of the essence.
  2. Under UCC Art 2, is a buyer entitled to PERFECT performance?
    YES—If tender is not perfect, buyer may REJECT the goods.

    This means that the buyer can return the goods at the seller's expense, get a refund of money paid, and collect damages from seller for breach of contract.
  3. UCC ART 2: If a seller's tender of goods is not perfect, can the seller CURE?
    • Time NOT expired: Seller may cure by delivering conforming goods.
    • Time EXPIRED: Seller cannot cure, unless seller has a good faith belief from prior dealings that buyer would accept the nonconforming goods (flexible in the past).
  4. What is an INSTALLMENT CONTRACT? And does the perfect tender rule apply?
    • Installment Contract: requires or authorizes delivery of goods in separate installments.
    • Reject for Substantial Impairment: buy can reject only for substantial impairment—perfect tender rule does NOT apply.
  5. Buyer's ACCEPTANCE of Goods
    Implied acceptance when buyer keeps goods

    • 1) without objection, after having had a
    • 2) reasonable opportunity to inspect.
  6. Can a buyer REJECT goods after they've been accepted?
    • Cannot reject: after buyer accepts (might be able to revoke acceptance)
    • Damages: But, a buyer who accepts can still get damages (e.g., cover, market damages, loss in value)
  7. Can a buyer REVOKE acceptance of goods?
    • Generally NO: a buyer cannot revoke acceptance of goods
    • Exceptions: can revoke if buyer can prove both (i) SUBSTANTIAL impairment, and (ii) DIFFICULT TO DISCOVER (i.e., latent defect). Must revoke within a reasonable time of discovering defect.
  8. What CONSEQUENCES if buyer effectively rejects or revokes acceptance of goods?
    • RETURN: goods at seller's expense
    • REFUND: any money paid for goods
    • DAMAGES: for breach of contract (e.g., cover, market damages, loss in value)
  9. If a buyer accepts goods, what are his payment obligations?
    • CHECK: may pay by check, but seller doesn't have to take it
    • REASONABLE TIME FOR REFUSAL: if seller doesn't accept buyer's check, buyer has a reasonable time from refusal to get cash, EVEN IF payment is made and refused at the end of the last day for payment
Author
ID
26613
Card Set
Contracts 4.txt
Description
Performance
Updated
Show Answers