Question

Seller agreed to sell to Buyer a quantity of raw materials. The written contract provided that notice of defects, to be effective, had to be received by Seller before any use or within ten days of receipt. When the raw materials were processed by Buyer, they turned a rust color, producing a finished product that was difficult to sell to ultimate customers. Buyer immediately notified Seller of the problem and refused to pay, claiming that the defect made the finished product unmarketable. Buyer refused to pay and Seller brought suit against Buyer for the contract price. What result? (in your answer use the terms: acceptance and revocation of acceptance, unconscionable, notice of breach, reasonableness)

Answer 1

In the given case, the buyer will be having the verdict in his favor. This is due to the fact that the agreement between the supplier and buyer includes that the notice about the defect in the product supplied has to be provided within 10 days or before the use. As the buyer notifies the supplier about the possible defect of the product immediately, it is covered as per the contract terms.

Secondly, the raw material supplied by the supplier can't be used for any sort of production by the buyer as it will result in the defective products that cannot be sold thus the usefulness of the product is nullified.

Looking at these facts, it is obvious that the buyer will have upper hand in the court's verdict.