Preview

Performance and Breach of Sales Contract

Better Essays
Open Document
Open Document
1805 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Performance and Breach of Sales Contract
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 buyer to pay therefore. Thus, when the seller offers to turn the goods over to the buyer and when the buyer offers to pay for them, tender of performance occurs. The seller must make tender of delivery and the buyer must make tender of payment.
 Tender of delivery by Seller: To be in a position to bring suit on a sales contract, the seller of goods must make tender of delivery, that is, offer to turn the goods over to the buyer. Failure to make this offer is an excuse for buyers not to perform their part of the bargain. The seller must put and hold the goods at the buyer’s disposition and notify the buyer that the goods are being tendered during reasonable hours and for a reasonable period of time. In a shipment contract, the seller must put the goods in the possession of a carrier and contract with that carrier for their transportation. Any necessary documents must be sent to the buyer, who must be promptly notified of the shipment. If the seller does not make a reasonable contract for delivery or notify the buyer and a material delay or loss results, the buyer has the right to reject the shipment. Suppose the goods are perishable, such as fresh produce, and the seller does not ship them in a refrigerated truck or

You May Also Find These Documents Helpful

  • Good Essays

    According to the definition, the buyer takes responsibility for the goods as soon as they leave the seller’s premises.…

    • 835 Words
    • 4 Pages
    Good Essays
  • Better Essays

    contract for the sale of goods are merchants, a confirmatory writing signed by one of the parties…

    • 1107 Words
    • 5 Pages
    Better Essays
  • Good Essays

    The contract of sale take place in every day life when we buy something in the shops either food or clothes or just newspaper. There aren’t buying without law. It is important that we always know our rights if we buy something.…

    • 1306 Words
    • 6 Pages
    Good Essays
  • Good Essays

    If the non-performing party, in its sole judgment, is prevented directly or indirectly on account of any cause beyond its control, from delivering the Goods at the time specified, then the Seller will have the right to terminate this Agreement by notice in writing to the Buyer if no remedy can be provided. The notice to Buyer will be accompanied by full refund of all sums paid by the Buyer pursuant to this Agreement and vice versa if the Buyer doesn’t perform to its obligations.…

    • 1136 Words
    • 5 Pages
    Good Essays
  • Good Essays

    Formation: For a contract to take place an offer has to be given to someone and he or she would have to accept it in written. The transaction in this case involves a sale of goods contract. “A contract of sale is a legal contract an exchange of goods, services or property to be exchanged from seller to buyer for an agreed upon value in money paid or the promise to pay same. It is a specific type of legal contract.’ (1)…

    • 1072 Words
    • 5 Pages
    Good Essays
  • Good Essays

    The Buyer shall pay the goods through the following form within 15 days after signature of formal order. 100% of the total price for goods shall be paid by L/C by domestic bank. The Seller has the ownership of products before receiving all corresponding payment for goods.…

    • 559 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Purchase and Sales Cycle

    • 2183 Words
    • 9 Pages

    Purchase order will also be issued and copies will be sent to several related parties. Before the goods are received by Logistic & Warehousing department, the purchase order will be monitored and followed up. The goods will be examine and inspected by the Quality Management department as soon as they are received. Goods received notes will be received right after the examination and inspection were done and it will be given to the Accounts department in order to make a stock recording into relevant accounts for future usage.…

    • 2183 Words
    • 9 Pages
    Good Essays
  • Satisfactory Essays

    INCOTERM

    • 407 Words
    • 2 Pages

    According to these international commercial terms both buyer and seller must respect the place where they agreed to be delivered the goods. The seller have some obligations and payments to do to guarantee the correct delivering of the goods, once they are received by the buyer he/she must pay some of those expenses to the seller. These are only a few of the obligations that they have.…

    • 407 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Management Accounting

    • 1851 Words
    • 8 Pages

    Rule 1.Where there is an unconditional contract for the sale of specific goods, in a deliverable state, the property in the goods passes to the buyer when the contract is made, and it is immaterial whether the time of payment or the time of delivery, or both, is postponed.…

    • 1851 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    love

    • 1280 Words
    • 6 Pages

    The Seller's only responsibility is to make the goods available at the Seller's premises. The Buyer bears full costs and risks of moving the goods from there to destination.…

    • 1280 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    contract

    • 394 Words
    • 2 Pages

    If Buyer’s failure to make payment, to establish a letter of credit or otherwise to perform its obligations hereunder is reasonably anticipated, Seller may demand that Buyer provide, within a reasonable time, adequate assurance satisfactory to Seller of the due performance of this Contract and may withhold shipment or delivery of the undelivered Goods until such assurance if given.…

    • 394 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    sellers to deliver to the buyer if required to do so. Arbitrage between cash and futures will ensure that…

    • 2041 Words
    • 7 Pages
    Better Essays
  • Powerful Essays

    M-commerce – M-commerce is also known as Mobile e-commerce. M-commerce was first launched at the Global Mobile Commerce Forum by Kevin Duffy in 1997. This service has the capability to deliver goods directly to the customers online, via wireless handheld devices.…

    • 952 Words
    • 4 Pages
    Powerful Essays
  • Good Essays

    Law on Sales Reviewer

    • 14544 Words
    • 59 Pages

    |there is a contrary agreement |delivery. Ownership passes to the buyer only upon full payment of|…

    • 14544 Words
    • 59 Pages
    Good Essays
  • Better Essays

    international trade law

    • 4779 Words
    • 15 Pages

    Delivery of goods from seller to buyer usually involves the passing of property and risk in the goods…

    • 4779 Words
    • 15 Pages
    Better Essays