If goods are sold in transit risk of loss passes to the buyer at the time the

If goods are sold in transit risk of loss passes to

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If goods are sold in-transit, risk of loss passes to the buyer at the time the contract is concluded Contaminated oil example, if seller knows, risk doesn’t pass Destination contracts Seller required to arrange transport to named destination, risk of loss passes to buyer when the goods are handed over to buyer, or at that place Example DDP Seattle, Washington
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Passing of Risk (cont’d) Means of Delivery (cont’d) Goods delivered without being transported When goods are not transported, risk of loss passes when the goods are handed over to the seller or otherwise put at the buyer’s disposal (haybale) Example EXW Seller’s City Breach of Contract CISG rules on risk of loss are not concerned with breach of contract (except tainted in-transit contracts) – risk of loss passes to buyer at agreed upon time and place
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Remedies Unique to buyer Unique to seller Available to either party
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Remedies (cont’d) Buyer’s Remedies - cumulative Specific performance Avoidance Reduce price Refuse early delivery Refuse excess quantities
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Remedies (cont’d) Buyer’s Remedies – (cont’d) Specific performance – see discussion before Deliver substitute goods Make repairs
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Remedies (cont’d) Buyer’s Remedies – (cont’d) Avoidance Provide Nachfrist Notice Generally required for buyer to provide a reasonable time period before avoiding the contract
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Remedies (cont’d) Buyer’s Remedies – (cont’d) Reduce price If buyer not entitle to damages when a seller delivers nonconforming goods, the buyer will be entitled to a reduction in price. Buyer must have accepted non-conforming goods, and Sell must not be responsible for non-conforming goods » Example force majeure Refuse early delivery or excess quantities Buyer is under no obligation to take early delivery or excess quantities
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Remedies (cont’d) Buyer’s Remedies – (cont’d) Effect of Partial Non-conformity 1000 bags of flour Delivery, 100 bags vermin infested, unusable Buyer may seek specific performance, price reduction or avoid that part of contract – in accordance with the CISG rules for each Avoiding entire contract (refuse entire delivery) – ONLY if the partial nonconformance is a fundamental breach
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Remedies (cont’d) Seller’s Remedies – cumulative and immediate Specific performance Take delivery and pay contract price Perform any other obligations required by the contract Avoid contract for fundamental breach or failure to cure a defect Same as buyers, failure to cure afer Nachfrist Notice Obtain missing specifications If buyer doesn’t supply specifications by the given time/date, seller can ascertain specifications and notify buyer of them, if buyer does not respond, they become binding on the buyer
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Remedies (cont’d) Buyer’s and Seller’s Remedies Suspension of performance Avoidance in anticipation of fundamental breach Avoidance of an installment contract Damages
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Remedies (cont’d) Buyer’s and Seller’s Remedies (cont’d) Suspension of performance (cont’d)
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