Performance and Obligations under Sales and Leases

Performance and Obligations under Sales and Leases -...

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Performance and Obligations under Sales and Leases Basic performance obligations If you are selling something you ought to convey the goods If you are buying something you need to pay for it Perfect tender rule- tender means the seller puts the goods where the buyer can inspect and pay for them. The goods must conform in every aspect that it says. Fungible goods- one is just like the other (exact replicas) When a refinery in Texas puts gasoline in pipes, one gallon of gas is equivalent to another gallon Fungible goods are mostly agricultural products Ex) Land of Lakes butter taste exactly the food lion brand butter. Taste exactly the same, therefore they are fungible Ex) 10,000 blue pens made by BIC and you order a specific model with blue ink. So when you receive them as a buyer you can inspect them and they better be that model and that color and that quantity Ex) all pizza rolls aren’t fungible because they are in different shapes and sizes in a
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This note was uploaded on 03/23/2012 for the course ACCT 324 taught by Professor Eppink during the Spring '10 term at South Carolina.

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