Tuesday, July 15, 2008

Bar Exam Tip: Non Conforming Goods

If a buyer rejects goods because of defects in the shipment (non-conforming goods) the seller has an opportunity to cure the defects and send conforming goods up until the day of contract performance. But if the seller reasonably believed the shipment conformed to terms of the contract, even though they did not, the seller will be given a commercially reasonable time to cure the defect.

A shipment of non-conforming goods in addition to an accommodation notice is a counteroffer, which the buyer can either accept or reject.

Without the simultaneous accommodation notice, the seller is liable for breach of contract by sending non-conforming goods.

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