4. Performance of Article 2 Contracts Flashcards Preview

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Flashcards in 4. Performance of Article 2 Contracts Deck (16)
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1

What is a perfect tender?

Delivery which complies completely with the terms of the contract

2

What are buyer's two options for a tender which is less than perfect?

1. Keep goods and sue for damages

2. Send the goods back, recover price paid, and possibly sue for damages

3

In order for a buyer to reject goods because of a less than perfect tender, what is required of the buyer?

They must act in good faith

4

What two things are required of the buyer regarding the goods they wish to reject?

1. Buyer must take reasonable care of the goods

2. Buyer must not continue to use the goods

5

What is cure?

Seller's second chance to make right on a less than perfect tender

6

When is cure possible?

When the time for performance has not yet passed

7

What is required of a seller in order to cure after the time for performance has passed?

Seller must have reasonable grounds to believe that their less than perfect tender would be okay

8

Regarding cure, what can give a seller reasonable grounds to belive less than perfect tender would be okay?

Prior deals between the parties

9

What is one specific instance where a seller with be allowed to cure?

When they forward a sealed box from the manufacturer without checking its contents

10

What is an installment contract?

A contract under which goods are to be delivered in separate lots which are to be accepted separately

11

In an installment contract, when can a buyer reject an individual lot?

Where there has been substantial impairment which cannot be cured

12

What is the consequence of a buyer accepting the goods?

He cannot later reject them

13

Is payment without an opportunity to inspect considered to be acceptance?

No

14

When must a buyer reject goods?

Within a reasonable time

15

What is the consequence of keeping the goods?

It is implied acceptance

16

What three things are needed to revoke acceptance of goods?

1. Non-conformity substantially impairs value of goods

2. Excusable ignorance of that non-conformity or reliance of seller's assurances

3. Revocation within reasonable time of discovering non-conformity