Buyer and seller can alter their obligations and rights by an agreement. Under UCC, they can amend the damages, in a contract; alteration in remedies is an addition. It is also possible to maintain a selected remedy. However if the selected remedy is not succeeded then the buyer is titled to the existing remedies.
Limitation of the Remedies: Damages that are predictable are referred as consequential damages. These damages are limited or excluded under UCC. If the buyer is consumer, then the personal damage from the goods is not deliberate. But the damages are not limited if it involves property damage and financial losses.
The US property W bought 87 commercial trailers from company S. The person GM was the independent sales agent who showed the documents of title to W, as per these documents W was not the owner of the trailers. Later W asked the person GM for selling these trailers, GM sold all the trailers, but did not reimburse proceedings to W. W filed a suit against S for refunding the price of a contract without mentioning the titles of the documents. The company S refused to pay the price and W filed a case.
Remedies of the buyers:
If the contract is breached by the seller then the buyer has a number of remedies under UCC (Uniform commercial code). But these remedies are dependent on the situations that exist at the time of the breach. The remedies are right to rescind the contract if the goods are not delivered by the sellers, right to obtain or receive the goods at the time of insolvency, the right to recover damages and, others.
Right to recover damages for the goods that have been accepted:
Any buyer who has accepted the goods that are non-confirmed has the right to keep those goods and also recover the damages that have been caused by the breach of the contract. For this, it is the duty of the buyer that he inform the seller about the breach within reasonable time period. If the buyer fails to give notice to the seller then the remedies are lost.
In this case, W entered into the contract with the company S and did not inform about the breach done by the person GM at a reasonable time. Also, GM is an independent agent who is not related with company S. Thus, W does not right to recover damages goods that have been accepted.
Generally, the measure of the damages for non-delivery of goods is considered as the difference between the value of goods that are accepted and the value of the goods if they have been delivered on time. In this case, W has received the goods on time. Thus, there will be no measures of damages. Thus, it can be concluded that W does not have right to recover damages.
A buyer manifests acceptance of the goods delivered to him by doing any of the following:
a) Having had a reasonable opportunity to inspect the delivered goods, if the buyer indicates to the seller that the goods either are acceptable or are conforming in spite of their nonconformity.
b) Having had a reasonable opportunity to inspect the delivered goods, if the buyer fails to reject the goods within a reasonable time period.
c) In a sales contracts, if the buyer acts in any inconsistent manner with the seller's ownership such as using or reselling the goods.
Yes , acceptance does manifest in the case of Hughes delivering goods to Stark.
Stark did not reject the goods even after the transfer of ownership to J.F. Hughes. He continued to accept the delivery, and thus, the acceptance is presumed.