Question

Formetal Engineering submitted to Presto a sample and specifications for precut polyurethane pads to be used in making air-conditioning units. Formetal paid for the goods as soon as they were delivered but subsequently discovered that the pads did not conform to the sample and specifications in that there were incomplete cuts, color variances, and faulty adherence to the pad’s paper backing. Formetal then informed Presto of the defects and notified Presto that it would reject the pads and return them to Presto, but they were not returned for 125 days. Presto argued that it was denied the right to cure because the goods were not returned until some 125 days after Formetal promised to do so. Was there a breach of the contract? Did the buyer (Formetal) do anything wrong in seeking its remedies?

Answer 1

Facts of the Case: Formetal Engineering (Buyer) bought goods from Presto (Seller) insisting on the quality check of samples. However Buyer later found that the goods delivered are not as specified by it and not in a condition to use. Hence, it informed to seller that they will return the goods as they are not similar to sample provided. But, buyer returned goods to seller after 125 days from the date of intimation.

Conclusion: Presto (Seller) delivered the goods to Formetal (Buyer) which are different from the samples provided by it. In this case it is clearly evident that seller breached the contract as goods are delivered with incomplete cuts, color variances and faulty paper backings. Seller is liable to accept the returned goods from buyer.

However, if the agreement between buyer and seller mentions time for return of goods, they should be returned within the prescribed time period. And even if the agreement doesn't include the time period for return of goods, they should be returned within a reasonable time as per industry practices, otherwise buyer may lose the right to return the goods.