Week Four Outline
Steve Borjas, Erik Creede, Christopher Daniel, Andre Hughley
January 25, 2016
Instructor Joel Stiner
Week 4 Outline
8-7). How can sales agreements be breached and how can they be remedied?
I. A breach is nonperformance in a contract.
a. A buyer breaches a sales contract when she does any of the following:
i. Rejects the goods despite the fact the goods conformed to the contract specifications
ii. Wrongfully revokes an acceptance
iii. Fails to pay the seller in accordance with the ...view middle of the document...
In the case of wrongful rejection, the seller may reclaim the goods and exercise the remedies provided for in the UCC when the goods
are in the hands of the seller, including the recovery of costs
related to the reclamation.
c. Remedies available to the buyer:
i. The UCC provides buyers with the immediate remedy of rightful
rejection of all or part of the lot when the seller delivers
ii. The UCC provides the buyer with an option to take immediate steps by canceling the contract and purchasing substitute goods from another vendor, known as cover, in order to continue business operations.
VI. Incidental Damages Under the UCC
Any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, or in transportation, care, and custody of goods after a buyer’s breach.
8-8). What are the details of contracts for international sales of goods?
I. No writing required
a. UNCISG has no formal writing requirement and specifically provides that contracts are not subject to requirements as to format.
II. Offer and acceptance
a. The offer need not have complete terms in order to be valid. Requires:
i. A brief description of the goods
a. Sellers have an absolute right and obligation to cure
b. Buyers must allow the seller the opportunity to cure even if the time for performance is past due.
i. The buyer must give notice of the nonconformance in a timely manner
ii. If the seller does not cure, the UNCISG provides a right for the buyer to pursue remedies.
Concept Summary: Contracts for International Sales of Goods
• The UNCISG, the international counterpart to the UCC, is a treaty that governs sales contracts between businesses located in U.N. signatory countries.
• Four major differences between the UNCISG and the UCC are (1) it does not apply to nonmerchants, (2) it has no statute of frauds, (3) offers can be withdrawn at any point prior to the offeror receiving the acceptance, and...