Quiz 21: Title, Risk, and Insurable Interest

Business

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.

Acceptance of Shipment. Yes, GFI does have any genuine reason to expect that E would receive the fourth consignment as the agreement between both the parties establishes the payment contract and E has accepted each and every payment sent by GFI whether it was achieved according to agreement or not. First consignment and second consignment were same and similarly third consignment and fourth consignment was also same. However, E did not convey about the obliteration of chips on third consignment. Therefore, when GFI made fourth consignment then also he presumes that E would accept the fourth consignment also.

Assuming that T does not retract his repudiation, L can recover for a breach of contract through the following remedies: ? cancel the contract: this ensures that L does not have to carry out any duties delegated to him in the contract. ? resell the goods and sue to lost profit: if L sells the good at a lower price, he can sue T for the difference in profit. ? sue for the purchase price: if L is unable to sell the goods and sues for the purchase price, the goods must be saved for T to claim. Otherwise, if L resells them to a third party, he cannot recover the full purchase price from T, but only the difference in profit. ? sue to recover damages for the T's rejection of the goods: This may allow recovery for things such as overhead and delivery costs attached to the delivery.

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