Question 1

Tender must occur at a reasonable hour and in a reasonable manner.

Accepted Answer

This is a requirement of a valid tender. Tenders cannot occur at unreasonable hours or in unreasonable manners.

Question 2

An installment contract is a single contract that requires or authorizes delivery in two or more separate lots to be paid for in one payment.

Accepted Answer

An installment contract is a single contract that requires or authorizes delivery in two or more separate lots, but payments are made in installments rather than one lump sum.

Question 3

There are no circumstances under which a contract can be tendered by multiple deliveries of goods.

Accepted Answer

True

Question 4

Under the perfect tender rule, if tender is not perfect, the seller is obligated to try again.

Accepted Answer

The answer of Under the perfect tender rule, if tender...

Question 5

In the absence of any specific agreements, the buyer or lessee must make payment after receipt of the goods.

Accepted Answer

The answer of In the absence of any specific agreements,...

Question 6

Under the UCC, if a contract does not designate the place of delivery for the goods, the place of delivery is a location halfway between the seller's place of business and the buyer's place of business.

Accepted Answer

The answer of Under the UCC, if a contract does...

Question 7

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

Accepted Answer

This statement is true. The seller or lessor is obligated to provide goods that meet the specifications in the sales or lease contract. This is known as the warranty of conformity.

Question 8

Unless the parties agree otherwise, the buyer or lessee has an absolute right to inspect the goods before making payment.

Accepted Answer

This is stated in the Uniform Commercial Code (UCC) section 2-513. It is customary for buyers to inspect goods before making payment, and the UCC upholds this right unless both parties agree otherwise.

Question 9

With an installment contract, a buyer or lessee can reject a single installment on any pretext.

Accepted Answer

A buyer or lessee cannot reject a single installment on any pretext with an installment contract. They are bound to make all agreed-upon payments according to the terms of the contract.

Question 10

Until the time for performance under a contract expires, the seller has a right to cure.

Accepted Answer

The right to cure allows the seller to correct any nonconformity or breach of contract before the time for performance expires, thereby avoiding a breach of contract.

Question 11

Under the UCC, a seller's tender of goods that do not conform in every way to a contract is still a valid tender.

Accepted Answer

The answer of Under the UCC, a seller's tender of...

Question 12

A shipment contract requires a seller to ship goods by a carrier.

Accepted Answer

A shipment contract typically requires a seller to ship goods by a carrier.

Question 13

If goods in every respect conform to a contract, the buyer or lessee does not have a right to reject the goods.

Accepted Answer

If the goods meet all the specifications and requirements as stated in the contract, the buyer or lessee must accept them. They cannot reject the goods just because they changed their mind or found a better deal elsewhere. However, if there are defects or deficiencies in the goods that do not conform to the contract, the buyer or lessee may have a right to reject them.

Question 14

The term cure refers to the right of the buyer to reject, adjust, or replace nonconforming goods.

Accepted Answer

The answer of The term cure refers to the right...

Question 15

In contracts involving a carrier, a seller can complete performance through a shipment contract or a destination contract.

Accepted Answer

A seller can either enter into a shipment contract, where their performance is completed once the goods are delivered to the carrier, or a destination contract, where their performance is completed only when the goods are delivered to the buyer at a specific destination.

Question 16

Tender of delivery requires that the seller or lessor hold the goods at the buyer's or lessee's disposal, but not that the goods be conforming.

Accepted Answer

Tender of delivery only requires the seller or lessor to hold the goods at the buyer's or lessee's disposal, regardless of whether the goods are conforming or not. It is not until the buyer or lessee accepts the goods that conforming becomes important.

Question 17

The seller's right to cure does not affect the right of the buyer or lessee to reject goods.

Accepted Answer

The seller's right to cure under the Uniform Commercial Code allows the seller to make right any defect in the goods delivered, which can affect the buyer's or lessee's right to reject the goods if the cure meets the contract specifications within the agreed time frame.

Question 18

An installment contract is breached if a seller tenders any nonconforming goods.

Accepted Answer

Under the Uniform Commercial Code (UCC), an installment contract allows for or requires the delivery of goods in separate lots to be separately accepted. A breach of the whole contract occurs only if a nonconformity substantially impairs the value of the entire contract. Therefore, not every tender of nonconforming goods constitutes a breach of the entire contract.

Question 19

The principle of good faith applies to both parties to a sales contract.

Accepted Answer

The principle of good faith requires that both parties act honestly and fairly in their dealings with each other. This applies to sales contracts as well as any other type of contract.

Question 20

Under the UCC, there are no exceptions to the perfect tender rule.

Accepted Answer

The UCC does provide some exceptions to the perfect tender rule, such as the right to cure and the doctrine of commercial impracticability.

Quiz 14: Performance and Breach of Sales and Lease Contracts