Sales Contracts

Front 1

What is the seller's tender of deliver conditional on?

Back 1

It's conditional on the buyer's duty to accept the goods and pay for the goods

Front 2

What is the seller entitled to once he/she makes a tender of delivery?

Back 2

The buyer's acceptance and the buyer's payment for the goods

Front 3

What happens when the seller makes an improper tender of delivery?

Back 3

The seller notifies the buyer of his intention to cure and has until the contract is up to make a conforming delivery; if the buyer has reason to believe delivery would be conforming, he may have more time to cure and deliver conforming goods

Front 4

What 3 things can the buyer do if the goods or delivery of the goods are non-conforming?

Back 4

1. reject all of the goods
2. accept all of the goods
or 3. accept some goods and reject other goods

Front 5

What is the proper way for a buyer to reject goods?

Back 5

1. Must reject within a reasonable time after delivery or tender of delivery
2. Must seasonably (timely fashion or at the proper time) notify the seller of the rejection; ineffective unless you seasonably notify the seller

Front 6

What are the 3 proper ways for a buyer to accept goods?

Back 6

1. Must do a reasonable inspection of the goods (seller must give them the opportunity to inspect) and must notify the seller that the goods are conforming or that he will take them regardless if their non-conforming
or 2. Must fail to make a proper rejection
or 3. do any act that is inconsistent with the seller's ownership

Front 7

What is the effect of accepting the goods? What must the buyer do after accepting any goods?

Back 7

Pay the contract price for them

Front 8

When must the buyer notify the seller of any breaches after accepting the goods?

Back 8

Within a reasonable time after he discovered the breach or should have discovered the breach; if he doesn't do this in a reasonable time, the buyer loses the right for a remedy

Front 9

When is a buyer eligible to revoke his acceptance?

Back 9

If the nonconformity substantially (substantially) hurts the value of the goods and if he
1. accepted it thinking the seller would cure the nonconforming goods, but didnt
or
2. he didnt discover the nonconformity before acceptance because it couldnt be seen yet or because the seller's gave strong assurances that stopped him from inspecting

Front 10

When is a buyer's revocation of his acceptance effective?

Back 10

Not until after he gives notice to the seller of the revocation

Front 11

When must a buyer revoke it in order for it to be okay?

Back 11

Within a reasonable time period after he discovered or should have discovered the reason for revocation and before any change in the goods thats not caused by their own defects

Front 12

What can the seller due when he finds out the buyer is insolvent/ bankrupt?

Back 12

1. refuse delivery except for cash
2. stop delivery of goods in transit or in bailee's possession

Front 13

Can the buyer deduct some amount of the seller's damages from the price still due under the contract?

Back 13

Yes, just must notify the seller of his plan to deduct his damages this way

Front 14

If the buyer fails to cover, is he not entitled to any other remedy?

Back 14

No; buyer is not forced to cover and failure to not cover does not preclude getting another remedy

Front 15

When is the buyer entitled to consequential damages?

Back 15

Must have been foreseeable to the seller and he could not have reasonably prevented by covering; injury resulting from breach of warranty

Front 16

When can a party exercise his right to an adequate assurance of performance?

Back 16

Whenever the party has reason to believe the other party is insecure in his obligations to perform

Front 17

What can a party who requests an adequate assurance of performance do if the party doesn't give it?

Back 17

not perform under the contract for anything he hasn't received the agreed upon exchange

Front 18

If you request for an adequate assurance of performance, how many day does the party have to give it to you until it's considered a breach?

Back 18

30 days

Front 19

What happens if one installment of an installment contract is bad, and it's so bad that it messes up the whole value of the contract?

Back 19

It's considered a breach of the whole installment contract

Front 20

What happens when you get one installment of an installment contract that's bad?

Back 20

must give the seller the opportunity to cure

Front 21

What happens when the installment contract is bad because you dont get the proper documents, but not getting the proper documents does not ruin the entire contract?

Back 21

You can request the seller to provide adequate assurance of performance and must accept the installment if the seller gives you this adequate assurance of performance

Front 22

When are the 2 exceptions that the buyer is not entitled to inspect the goods prior to payment?

Back 22

1. for delivery "C.O.D"
2. for payment against documents of title