Question

Under the UCC, when a contract for the sale of goods is breached by the seller for failure to tender conforming goods to the buyer; after the buyer has had an opportunity to inspect the goods: (1) What are the buyer's options in terms of accepting or rejecting the nonconforming goods? (2) What opportunity must the seller be given if the time for performance has not expired? (3) What is deemed to have occurred if the buyer fails to reject the non-conforming goods? (4) If the buyer fails to reject the nonconforming goods what are the buyer's potential remedies?; and (5) If the buyer sues the seller for damages what type of damages is the buyer most likely to recover?

Answer 1

The buyer can reject the goods if it does not conform to the specification given by him at the time of contract, or low in quality due to any reason. He can ask for refund or ask the seller to sell the right items as per description.

The seller must be given reasinable opportunity to cure the breach on contract within the time of performance or whatever reasinable time it might take for the cure to happen.

If buyer fails to reject the non performing goods within reasonable time ( it can be different for different items and vary from few hours or a day to two - threee weeks), he is deemed to have accpeted it as it is.

Buyer can reject the goods within reasonable time. However if it fails to reject it within that time, it can sue the seller fro breach of warranty as the defective goods is unlikely to perform in the same way as a good item, as promised through implied product liability in the contract.

Buyer can ask for damages which are

(i) Price paid for the goods.

(ii) Inciental damages ( such as cost incurred in inspecting, transporting, handling etc.)

(iii) Conseqential damages - ( Losses resulting in from the opportunity lost by the buyer due to non conformance of goods.)