Question

In: Operations Management

a. Where a tender has been accepted, the buyer must notify the seller within a reasonable time of any breach that the buyer should have discovered or be barred from any remedy for that breach

a. Where a tender has been accepted, the buyer must notify the seller within a reasonable time of any breach that the buyer should have discovered or be barred from any remedy for that breach. Is this statement correct? Explain your answer, including the applicable UCC sections.

b. If the time for performance has not yet expired, the seller may seasonably notify the buyer of his intent to cure, and then make a conforming delivery provided that the seller had reasonable grounds for believing that the non-conforming tender would be acceptable. Is this statement correct? Explain your answer, including the applicable UCC sections.

Solutions

Expert Solution

Ans a: Yes, this statement is true. Under 2-607 (3) This code requires notification of a breach to the seller. The notice must inform the seller that the buyer does not wish to keep the goods. The buyer's notice to the seller does not need to be formal, but after making the notification, the buyer "reaccepts" the goods, the previous revocation notice is no longer valid.

Ans b: No, the statement is not correct. UCC 2-508 cure by the seller of improper tender or delivery. the seller has the right to cure only if there are reasonable grounds to believe that a nonconforming tender would be acceptable. In our readings, it states that the buyer loses rights to reject if the seller exercised proper right to cure.


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