Chapter 22 - Outline

Chapter 22 - Outline - Chapter 22 Performance Introduction...

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Chapter 22 – Performance Introduction - Performance is the process of discharging contractual obligations by carrying out those obligations according to the terms of contract. o Seller: The basic obligation of the seller in a contract for the sale of goods is to transfer and deliver goods that conform to the terms of the contract o Buyer: The basic obligation of the buyer is to accept and pay for the conforming goods in accordance with the contract o The basic obligation of the lessor is to transfer possession of the goods for the lease term, and that of the lessee is to pay for the agreed rent o Tender (offer) of performance by one party is a condition to performance by the other party - The obligations of the parties are determined by their contractual agreement o Example: The contract of sale may expressly provide that the seller must deliver the goods before receiving payment of the price or that the buyer must pay the price before receiving the goods. If the contract does not sufficiently cover the particulars of performance\, these terms will be supplied by the Code, common law, course of dealing, usage of trade, and course of performance. Performance by the Seller - Tender of conforming goods by the seller entitles him to acceptance of them by the buyer and to payment of the contractually agreed-upon price o Example: If the seller has agreed to sell goods on sixty or ninety days credit, he is required to perform his part of the contract before the buyer performs o Tender of delivery requires that the seller put and hold goods to conform to the contract at the buyer’s disposition and that he give the buyer reasonable notification to enable her to take delivery. o Tender also must be made at a reasonable time and be kept open for a reasonable period. Example: Robert agrees to sell Barbara a sound system composed of a CD player, receiver, tape deck, and two speakers. Each component is specified by manufacturer and model number, and delivery is to be at Robert’s store. Robert obtains the ordered equipment in accordance with the contractual specifications and notifies Barbara that she may pick up the system at her convenience. Robert has now tendered and thus has performed his obligations under the sales contract: he holds the goods that conform to the contract, he has reasonably placed them at the buyer’s disposal, and he has notified the buyer of their readiness. Time and Manner of Tender
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- Tender must be at a reasonable time, and the goods tendered must be kept available for the period reasonable necessary to enable the buyer to take possession of them - A contract may not be performed piecemeal or in installments unless the parties agree. o If such performance is not so specified, all the goods the contract specifies must be tendered in a single delivery, and payment is due on such tender Place of Tender - If the contract does not specify the place for delivery of the goods, the place for delivery is the seller’s lace of business, or if he has none, his residence. -
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Chapter 22 - Outline - Chapter 22 Performance Introduction...

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