State all of the remedies under the Uniform Commercial Code available to Blake.
| ♥ 0 |
Sims contracted in writing to sell Blake one hundred electric motors at a price of $100 each, freight prepaid to Blake’s warehouse. By the contract of sale, Sims expressly warranted that each motor would develop twenty-five-brake horsepower. The contract provided that the motors would be delivered in lots of twenty-five per week beginning January 2 and that Blake should pay for each lot of twenty-five motors as delivered but that Blake was to have right of inspection upon delivery. Immediately upon delivery of the first lot of twenty-five motors on January 2, Blake forwarded Sims a check for $2,500, but upon testing each of the twenty-five motors, Blake determined that none would develop more than fifteen-brake horsepower. State all of the remedies under the Uniform Commercial Code available to Blake. |
Explanation
The Sale of Goods Contract accepts the performance of task as whole or in part as agreed by the parties. An unjustifiable non-performance or any unreasonable delay in performance by either party allows the other party to employ certain remedies for the loss incurred by them. The remedies available for the buyer include the following:
Buyer can cancel the contract with respect to a particular good or as a whole if breach by seller is related to the whole contract.
The buyer has the right to recover the payment that has been made to the seller in respect of the purchase of goods.
The buyer may protect themselves in case of breach by seller by obtaining Cover, which means that the buyer can purchase goods from an alternative source that is provided by the seller in good faith and without any unreasonable delay.
The buyer may legally refuse to accept any further shipment from the seller.
The buyer can claim for recovery if the seller cancels the contract and refuses to deliver goods.
The buyer can return the goods to the seller if the goods do not fulfill the standard, and the buyer can claim the total amount spent on the purchase of goods.
The buyer had a security interest in goods that one holds for a valid reason after justifiable cancellation of contract. The buyer can resale these goods as their original seller and can pay the excess amount, other than security interest, to the seller.
The buyer may recover indirect or incidental cost from the seller, which has been spent in the form of inspection cost, transportation cost, and care and custody cost of goods that have been reasonably rejected.
To provide a fair remedy, buyer can ask for a particular performance from the seller.
Sample Response
The solutions provided to Buyer B under U.C.C are as follows:
To cancel the contract with Seller S
To return the goods and recover payment made to the Seller S for the purchase of goods
To accept and keep the goods for which payment is made and claim for damages
To claim "Cover" for damages because of purchase of goods from alternative source that should be delivered by the seller
To not accept any further shipment from Seller S and recover for damages because of non-delivery and cancellation of delivery of goods
To recover incidental damages such as inspection cost, transportation cost, care, and custody cost
To recover for the damages incurred because of acceptance of goods that are not up to mark
To claim security interest in goods as the buyer has made payment for its purchase and inspection
To obligate Seller S to perform the contract as per its term
