The Rights Of Rejection Of The Contract

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The place of examination is subject to the agreement of both parties. It may be on pre-shipment inspection , nonetheless, it is inconvenient for the buyer to do so if he is in another country and has no representative at the place of shipment . In Bragg v Villanova , the seller received the documents and paid the price before taking the delivery and finding that the goods was not of contract quality. The court found that he was considered as not accepting the goods until he had reasonable opportunities to exercise examination, therefore, he had not lost his right of rejection. The two rights of rejection in FOB contract are applied at the similar principle of CIF contract as discussed. In particular, if the documents are inconsistent with the contract, the buyer is entitled to reject them and give the seller opportunity to correct the defects; he may reject the non-conforming goods even though he accepts the documents . Under section 51(3) of the Sale of Good Acts 1979, the damages are measured by: ‘… the difference between the contract price and the market or current price of the goods at the time or times when they ought to have been delivered, or (if no time was fixed) at the time of the refusal to deliver’. In case of the ‘classic’ FOB contract, the place assigned in the contract for shipment is deemed the place where the market is relevant . The time when the goods ‘ought to have been delivered’ is considered as the time at which they ought to have been placed free on
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