Con Ed refused to accept the substituted shipment. Joc Oil sues Con Ed for breach of contract. Judgment?
Joc Oil bought a cargo of fuel oil for resale. The certificate from the foreign refinery stated that the sulfur content of the oil was 0.5 percent. Joc Oil entered into a written contract with Con Ed for the sale of this oil. The contract specified a sulfur content of 0.5 percent. Joc Oil knew, however, that Con Ed was authorized to buy and burn oil of up to 1 percent sulfur content and that Con Ed often bought and mixed oils of varying contents to stay within this limit. The oil under contract was delivered to Con Ed, but independent testing revealed a sulfur content of 0.92 percent. Con Ed promptly rejected the non-conforming shipment. Joc Oil immediately offered to substitute a conforming shipment of oil, although the time for performance had expired after the first shipment of oil. Con Ed refused to accept the substituted shipment. Joc Oil sues Con Ed for breach of contract. Judgment?
The delivery that is considered as the non-conformity of goods is under the preferable criteria of Buyer C, 0.92%, and,that is why, Seller J believed it would be acceptable but the buyer denied accepting it. Seller J delivered the conforming goods as a substitute for the nonconforming goods but Buyer C breached the contract by not accepting the delivery of the conforming goods.
The Uniform Commercial Code cure rule provides the seller a chance to cure when the seller has reasons to believe that the nonconfirming goods are going to be acceptable.The seller notifies the buyer that the problem is going to be cured. Seller J is going to prevail since both the above-mentioned conditions are met.
The settlement is going to be in favor of Seller J. As per the cure rule, a seller has a right to cure if the seller has acceptable reasons to believe that the nonconforming tender is going to be acceptable;and the seller tells the buyer about the intentions to cure. Both requirements are fulfilled by Seller J and,that is why, Seller J is going to prevail.