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Exam 22: Performance and Breach of Sales and Lease Contracts

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Question 21

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Tarts & Pies Bakery contracts with Sweet Fruits for strawberries to be delivered by Refrigerated Trucking Company. On the day of delivery, the refrigeration on the trucks is not working. Sweet Fruits

A) ​may ship the strawberries to the buyer using a different carrier.
B) ​must cancel the contract.
C) ​must wait to ship the strawberries until the carrier fixes its trucks.
D) ​must ship the goods through a different carrier and pay damages.

E) All of the above
F) None of the above

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Question 22

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Under the UCC, if a contract does not designate the place of delivery for the goods, the place of delivery is a location halfway between the seller's place of business and the buyer's place of business.

A) True
B) False

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Question 23

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If, before the time for performance, a buyer communicates an intent not to perform, the seller can consider the buyer in breach and pursue a remedy.​

If goods in every respect conform to a contract, the buyer or lessee does not have a right to reject the goods.

The seller's or lessor's major obligation under a sales contract is to tender conforming goods to the buyer or lessee.

Fact Pattern 22-1​ Daily Bread Bakeries, Inc., contracts to buy all of its ingredient requirements for bread making, at a certain minimum per year, from Enriched Flour & Grain Corporation for six years. After three years, Daily Bread tells Enriched that it plans to sell its assets to Flat Bread Shops, Inc. Flat Bread refuses to assure Enriched that it will continue Daily Bread's contract. -Refer to Fact Pattern 22-1. Enriched can​

Fuel Connector Products, Inc., agrees to sell Go-Flo, Inc., a certain quantity of hose couplings and fittings, but the contract does not specify a place of delivery. Go-Flo is expected to pick up the goods. The place of delivery is

Unless the parties agree otherwise, the buyer or lessee has an absolute right to inspect the goods before making payment.

The term cure refers to the right of the buyer to reject, adjust, or replace nonconforming goods.

If a buyer repudiates a contract, the seller can bring an action to recover damages.​

Bayou Boats, Inc., contracts for the sale of seven swamp boats to Eventide Fishing Tours. Bayou repudiates the contract. Eventide's recovery is measured at the time

Precious Stones, Inc., and Sparkling Jewelry stores enter into a contract for a sale of gemstones. Precious Stones does not deliver. The buyer can normally recover as damages the difference between

H2O Company contracts to sell pumps, tanks, and water storage systems to In-Flo Irrigation, Inc. Before the goods are delivered, In-Flo indicates that it will not be able to pay. H2O can

Field Farms and Gourmet Restaurant enter into a contract for a sale of produce. After Field Farms ships the lettuce but before the restaurant receives it, the buyer declares bankruptcy. The seller can stop delivery of the goods in transit

With an installment contract, a buyer or lessee can reject a single installment on any pretext.

The doctrine of commercial impracticability only extends to problems that are unforeseen.​

Okay Markets, Inc., rejects a shipment of turkey that does not conform to its contract with Poultry Processing Corporation, but is unable to obtain instructions from the seller. Okay Markets can

Pine Mills Inc. and Quality Lumber Company enter into a contract for a sale of plywood to be delivered under a destination contract. This contract requires Pine Mills, the seller, to

Elegant Carpets, Inc., and Fantastic Floors Stores enter into a contract for a sale of carpeting to be delivered under a shipment contract. This contract requires Elegant Carpets, the seller, to

If goods identified to a contract are destroyed through no fault of either party, both parties are excused from performance.