Business Law

Business

Quiz 23 :
Performance and Remedies

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Quiz 23 :
Performance and Remedies

As per UCC, confirming goods satisfies the terms of contract but not the non-confirming goods. The seller primary obligation is to deliver confirming goods and good must be tendered as per perfect tender rule. In case, the goods is not confirming the buyer has first convey this to the buyer and if possible then he should give a chance to cure the defect of goods with I a reasonable period of time. The UCC main object is to satisfy both the parties i.e. seller and buyer. In this case A has delivered goods to the buyer or as per the order of the buyer but the buyer fail to convey that the goods is not confirming and neither he provided any chance to cure the goods nor he returned the goods to the seller. Therefore, as per the above facts A is entitled to get money for its parts supplied to seller.

Case: L and B hired BW waterproofing to waterproof the walls for $2,500. The contract stated that any seepage area will be recovered by the BW waterproofing at no additional cost to the customer. The expenditure on labour and materials will be at the cost of customer. And the liability for any damage will be limited to the total price of the contract. Relevant provision: Liquidated damages are the damages under which the compensation is paid to the injured party by the defaulting party. The amount payable under liquidated damage is the amount that is reasonable is the light of harm. Result : In this case, the provision of liquidated damage will be applicable. Therefore, the defaulting party BW waterproof Incorporation, will compensate to L and B for the breach of contract. The amount of damages payable will be limited up to the contract price. Hence, the amount of damages paid to L and B will be limited to $2,500. BW Waterproof is not liable to pay the full amount of actual expense incurred. It will only pay $2,500.

C made an oral contract with T to get manufactured compressor for $120,000. When T was done with its job at $90, 0000, C was no longer in need. C asked for the recovery as it was unable to resale with the storage cost of $2,000. In this case, the C is eligible for the price of the contract and the cost incurred for its storage. The seller cannot sell the goods to any other seller that why the buyer has to compensate the seller for the loss and expenses. So, C is liable to pay contract cost and storage cost, i.e. $122,000. Therefore, the correct option is (d)

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