Quiz 21: Performance and Breach of Sales and Lease Contracts


For a contract to be performed, there had to a present transfer of property. Here, the contract order did not move the possession of the vehicle in question from one owner to another. It was merely a contract for sale, which means the transfer of property would happen at a later date.

Remedies of the Seller or Lessor: In the case of Ames v. Curley, a trial court would probably find that Ames attempted to present Curley with a cure under the U.C.C 2-508(1), 2A-513(1). The first exception under the Perfect Tender Rule states that if a seller tenders nonconforming goods prior to when the contract time for performance has expired, with timely notification of the intent to cure, the seller has the right to repair, adjust, or replace defective or nonconforming goods. In this case, Ames has substituted the contracted product for a nonconforming good that is superior to the product purchased by Curley. Ames has also provided timely notice and shipped the nonconforming goods prior to the contract time for performance. However, Ames mistake was foreseeable and that fact may work against its argument for cure. In the end, it would be up to a trial court to determine whether the cure met the requirements and if it is enforceable upon Curley depending upon the terms of the contract.

The court describes both SD and R as buyers and sellers because of the character of the exchange taking place. SD sells his pickup truck to R for a cash value. Then R agrees to exchange two vehicles, assign rebates and pay cash for R's pickup truck. Thus, there are technically two sales here, for the pick-up truck and the second the vehicle trade in and rebates. Thus, both SD and R are both buyers and sellers of each other's assets.

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