After reading this chapter, you will be able to answer the following questions: What is the perfect tender rule? What is the difference between conforming and nonconforming goods? What is the right to cure? What is a revocation of the contract as compared to rejection of nonconforming goods? What is commercial impracticability? | Chapter 23 Performance and Obligations Under Sales and Leases Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 23: Performance and Obligations Under Sales and Leases 23- The Basic UCC Performance Obligation Sellers and lessors are obligated to transfer and deliver conforming goods Buyers and lessees are obligated to accept and pay for conforming goods in accordance with terms of contract “Good faith” required in performance and enforcement of every contract In terms of basic UCC performance obligations, sellers and lessors are obligated to transfer and deliver conforming goods, and buyers and lessees are obligated to accept and pay for conforming goods in accordance with the terms of the contract. “Good faith” is required in the performance and enforcement of every contract. 23- “Good Faith” Definition: Honesty in fact In transaction between merchants, UCC also imposes obligation of reasonable commercial standards of fair dealing (“commercial reasonableness”) “Good faith” is defined as honesty in fact. In a transaction between merchants, the UCC also imposes the obligation of complying with reasonable commercial standards of fair dealing. 23- “Perfect Tender” Rule States that if goods or tender of delivery fail in any respect to conform to contract, buyer/lessee has right to: 1) accept the goods; 2) reject entire shipment; or 3) accept part and reject part According to the “perfect tender” rule, if goods or the tender of delivery fail in any respect to conform to the contract, the buyer or lessee has the right to accept the goods, reject the entire shipment; or accept a portion and reject a portion of the non-conforming delivery. 23- Exceptions to “Perfect Tender” Rule Industry standards Past dealings between parties Agreement between parties Seller’s/lessor’s right to cure Excuse from performance when identified goods . | Chapter 23 Performance and Obligations Under Sales and Leases Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education. Chapter 23: Performance and Obligations Under Sales and Leases 23- The Basic UCC Performance Obligation Sellers and lessors are obligated to transfer and deliver conforming goods Buyers and lessees are obligated to accept and pay for conforming goods in accordance with terms of contract “Good faith” required in performance and enforcement of every contract In terms of basic UCC performance obligations, sellers and lessors are obligated to transfer and deliver conforming goods, and buyers and lessees are obligated to accept and pay for conforming goods in accordance with the terms of the contract. “Good faith” is required in the performance and enforcement of every contract. 23- “Good Faith” Definition: Honesty in fact In transaction between merchants, UCC .
