Question 1

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 refers to the act of making the goods available to the buyer or lessee. It does not imply that the goods are conforming, and it is the buyer's or lessee's responsibility to inspect them and accept or reject them accordingly.

Question 2

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

False

Question 3

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

Accepted Answer

A shipment contract is where the performance is completed when the goods are delivered to the carrier, while a destination contract is where the performance is completed when the goods are delivered to their final destination.

Question 4

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

Accepted Answer

A shipment contract usually requires the seller to ship goods using a carrier. This is because the carrier is responsible for transporting the goods from the seller to the buyer and ensuring that they arrive in good condition. In some cases, the buyer may be responsible for arranging the shipment, but this would be specified in the terms of the contract.

Question 5

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

Accepted Answer

The term "cure" refers to the seller's right to correct or replace nonconforming goods within the contract period, not the buyer's right.

Question 6

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

Accepted Answer

Until the specified deadline for performance, a seller has the right to cure any defects in their performance under the contract. This means that they may fix any problems to meet the terms of the agreement and avoid a breach of contract. Generally, this right to cure is only available for minor defects and may be subject to limitations or restrictions outlined in the contract itself.

Question 7

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 8

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

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

Question 9

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 is a true statement according to UCC Article 2, which governs sales contracts. The seller or lessor must ensure that the goods being sold or leased meet the specifications and requirements set forth in the contract.

Question 10

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

Accepted Answer

According to various legal systems and practices, tender must occur at a reasonable hour and in a reasonable manner. This is to ensure fairness and equal opportunity for all bidders.

Question 11

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

Accepted Answer

With an installment contract, the buyer or lessee cannot reject a single installment on any pretext. They are legally bound to make payments according to the terms of the contract.

Question 12

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

Accepted Answer

A contract can be tendered by multiple deliveries of goods if the contract specifically allows for it.

Question 13

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

Accepted Answer

There are some exceptions to the perfect tender rule under the UCC, such as when the parties agree to a different standard of performance or when there is a cure period allowed for nonconforming goods.

Question 14

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 to be paid for in multiple payments, rather than one payment.

Question 15

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 16

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 17

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

Accepted Answer

According to the Uniform Commercial Code (UCC) §2-513, the buyer or lessee has an absolute right to inspect the goods before making payment unless there is an agreement between the parties stating otherwise.

Question 18

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 match the contract specifications and are in good condition, the buyer/lessee cannot refuse them.

Question 19

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 20

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

Accepted Answer

The principle of good faith requires both parties to act honestly, fairly, and reasonably in their dealings with each other. This applies to sales contracts as both the buyer and the seller have an obligation to act in good faith.

Quiz 22: Performance and Breach of Sales and Lease Contracts