Question

6. Moore contracted in writing to sell her 2017 Hyundai Santa Fe to Hammer for $18,500. Moore agreed to deliver the car on Wednesday, and Hammer promised to pay the $18,500 the following Friday. On Tuesday, Hammer informed Moore that he would not be buying the car after all. By Friday, Hammer had changed his mind again, and tendered $18,500 to Moore. Moore, although she had not sold the car to another party, refused to sell the tender and refused to deliver the car. Hammer claimed that Moore had breached their contract. Moore contended that Hammer’s repudiation released her form her duty to perform under the contract. Who is correct and why?

7. Lehor collects antique cars. He contracts to purchase spare parts for a 1938 engine from Beem. These parts are not made anymore and are scarce. To obtain the contract with Beem. Lehor agrees to pay 50% of the purchase price in advance. Lehor sends the payment on May 1, and Beem receives it on May 2. On May 3, Beem, having found another buyer willing to pay substantially more for the parts, informs Lehor that he will not deliver as contracted. That same day, Lehor learns that Beem is insolvent. Discuss fully any possible remedies available to Lehor to enable to take possession of the parts.

Answer 1

6 :

​​​Answer :

Hammer is correct. Moore’s refusal to deliver the car to Hammer on Friday, when Hammer tendered the $8,500 to Moore, constituted a breach of their contract. Moore could have canceled the contract on Hammer’s anticipatory breach [UCC 2–610] but did not do so and did not change her position in any way as a result of Hammer’s anticipatory breach. Hammer could retract his anticipatory repudiation of the contract at any time prior to the time performance was due [UCC 2–611]. Because Hammer did retract his repudiation and decided to buy the car at the time performance was due (and not later), Moore was obligated to abide by the terms of the contract.

7.

Answer :

Lehor can use any of three remedies to get the parts from Beem:

(a)        Because the parts are scarce, Lehor can seek, through an action in equity, specific performance requiring Beem to transfer the parts to Lehor as contracted [UCC 2–716(1)].

(b)        Because the parts are identified to the contract and Lehor could not purchase substitute goods by cover, Lehor has a right of replevin. This action will require Beem’s transfer of the parts to Lehor [UCC 2–716(2)].

(c)        Even though Beem has not shipped the goods, Lehor has paid a part of the purchase price. If the payment is received and Beem becomes insolvent within ten days after receipt of this payment, Lehor can tender the balance and recover the parts from Beem [UCC 2–502]. Lehor is definitely entitled to get the parts from Beem. Practically speaking, however, Beem will have already sold the parts at the higher price to the other buyer.