Performance and Breach of Sales Contract

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Running head: Performance and Breach of Sales Contract Performance and Breach of Sales Contract Quynh Nguyen Upper Iowa University BA 302: Business Law Instructor: Paul Croushore Jun 3, 2009 Sales Contract: A sale occurs when there is an exchange of goods or other property from the seller to the buyer for money. In order to create in each party a duty to do or not to do something and a right to performance of the other’s duty or a remedy for the breach of the other’s duty, we need to set up a contract. Obligations of the parties: The obligations of the parties, as assigned in the terms of the contract, are governed by the general law of contracts. The obligation of the seller is to furnish the goods, as agreed upon, the…show more content…
 Acceptance: Acceptance of goods occurs when a buyer, after having a reasonable opportunity to inspect them, either indicates that he will take them or fails to reject them. When the buyer accept goods and later discovers something wrong with them, the buyer must notify the seller within the reasonable time after the discovery. The failure to give proper notice will prevent the buyer from having recourse against the seller. The buyer is obligated to goods that are accepted. If the buyer accept all the goods sold, she is, of course, responsible for the full purchase price. If the buyer accepts only part of the goods, she must pay for that part at the contract rate.  Rejection: A rejection occurs when a buyer refuses to accept delivery of goods tendered. A rejection must be done within a reasonable time after delivery or tender to the buyer. In addition, the buyer must notify the seller of the particular defect in the goods so as to give the seller an opportunity to correct the defect. If the seller gives no instructions within a reasonable time after being notified of the rejection, the buyer may store the goods for the seller, reship them to the seller, or resell them for the seller. In all case, the buyer is entitled to be reimbursed for expenses.  Revocation of acceptance: If a buyer has accepted the goods on the

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