Performance under Article 2

Question 1

Perfect Tender Rule

Answer 1

Rule: The delivery and tender of the goods must be exactly as promised.

Question 2

Obligation of Good Faith

Answer 2

Rule: Article 2 requires all party to act in good faith

• i.e., “honesty in fact and the observance of reasonable commercial standards of fair dealing.”

Question 3

Seller’s Obligation of Non-Carrier

Answer 3

1. Tender of Delivery: Seller must put and hold conforming goods at the buyer’s disposition for a time sufficient for the buyer to take possession.

• The seller must give the buyer notice reasonably necessary to enable her to take possession of the goods.
• The tender must be at a reasonable hour.

2. Place of Delivery: If the agreement doesn’t state the place of delivery, the place of delivery is at the seller’s place of business, or if he has non, seller’s home.

Question 4

Seller’s Obligation of Carrier Cases

Answer 4

1. Shipment Contracts: In the absence of an agreement otherwise the seller need not see that the goods reach the buyer, but need only:

• Put the goods into the hands of a reasonable carrier and make a reasonable contract for their transportation to the buyer;
• Obtain and promptly tender any documents required by the contract or usage of trade or otherwise necessary to enable the buyer to take possession; and
• Promptly notify the buyer of shipment.

2. Destination Contracts: If the contract requires the seller to tender delivery of goods at a particular destination (e.g. F.O.B. buyer’s warehouse), the seller must, at the destination, put and hold conforming goods at the buyer’s disposition.

Question 5

Buyer - Carrier Case

Answer 5

Rule: Unless otherwise agreed when goods are shipped by carrier, the price is due only at the time and plcae at which the buyer recieves the goods.

Question 6

Buyer - Noncarrier case

Answer 6

Rule: In noncarrier cases, unless the contract provides otherwise, a sale is for cash and the price is due concurrently with render of delivery.

Question 7

Buyer - Installment Contracts

Answer 7

Rule: In an installment contract, the seller may demand payment for each installment if the price can be so apportioned, unless a contrary intent appears.

Question 8

Buyer - Payment by Check

Answer 8

Rule: Tender of payment by check is sufficient unless the seller demands cash and gives the buyer time to get it.

Question 9

Buyer - Right of Inspection

Answer 9

Rule: The buyer has a right to inspect the goods before she pays uless the contract provides for payment C.O.D. or otherwise indicates the buyer has promised to pay without inspecting the goods.