Business Law-Chapter 21

Sales Contracts

almost all the same rules apply to lease

Right of Assurance

Make sure someone will abide contract by asking in writing

Right of Inspection

Before payment is due, right to inspect except COD contracts (cash on delivery)

Anticipatory Repudiation

-can treat breach of contract immediately. If you do, you a duty to mitigate
-can wait until actual time performance is due to see if they will perform
-If wait, no duty to mitigate, must act in good faith

Lemon laws

certain method as exercising your right as a consumer--pushes onto manufacturing and dealers to make sure they are producing good cars. If buy new car and doesn't work, have rights

Letters of credit

Binding legal document, absolute guarantee (bank guarantee). Customer needs a letter of credit which means if I don't pay the supplier X amount & get the product, then the bank will pay. Customer's pay 1-2% to have bank do this

Credit Letter

is NOT a guarantee payment by bank. It is a reference

Tender of Delivery

Occurs when the sellor or lessor makes conforming goods available to the buyer and gives the buyer whatever notification is reasonably necessary to enable to buyer to take delivery. Reasonable hour and reasonable manner

Place of delivery

if the contract does not designate the place of delivery, then the goods must be made available to the buyer at the sellers place of business or if the seller has none, the sellers residense

Delivery via Carrier

shipment contract. Decide which carrier to use

Perfect Tender Rule

the seller was obligated to deliver goods that confomed with the terms of the contract in every detail. If goods or tendor fails in any way, the buyer has the right to accept the goods, reject the entire shipment, or accept part and reject part.

Seller's right to Cure

the right of the seller or lessor to repair, adjust, or replace defective or non-conforming goods. Up until the time of the performance or reasonable time after

Commercial Impracticability

Some event has occurred that neither party anticipated and fulfilling would be extraordinary difficult and unfair to one party.