Performance & Breach a Contract Research Paper

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C.C. -- Article 2 -- Sales, 2005). In this case since the first lot was defective the buyer is going to claim that they have the right to refuse both lots. The seller will claim that they buyer should not be capable to refuse the second lot since it conformed to the specifications that had been set forth.

The obligation of a seller is to transport and convey and the obligation of the buyer is to recognize and pay in agreement with the contract. Express warranties by the seller are fashioned when any confirmation of detail or assurance by the seller to the buyer which relates to the goods and becomes part of the foundation of the agreement (U.C.C. -- Article 2 -- Sales, 2005). The seller had the responsibility to supply merchandise that conformed to the specifications set down in the contract in two lots.

In this case a Government watchdog agency had determined that the supplier of the first lot of material in another country had used potentially harmful chemicals in preparing the fabric and put a halt on all shipments entering the U.S. The Seller notified Buyer he intended to cure any variations from the sample in the second lot and immediately shipped by ship replacement material. With respect to the first lot, the Seller demanded payment because the Buyer had used the goods. Based upon the sample Buyer had he received a commitment to purchase the second lot of material if it could be produced within a certain amount of time. The Seller's shipment by ship was delayed.

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Upon inspection Buyer confirmed it conformed to the sample and description, but it arrived too late for the purchase commitment.

The seller had an obligation to replace both lots since they had been determined to be unsafe. If the defect was cured by the seller for the first lot then the buyer would then be responsible for payment. Upon the seller agreeing to replace the second lot and the buyer agreeing to that based upon a set arrival date a new contract had been formed and the seller had a responsibility to deliver the second lot on time. When that did not happen, a breach of the second contract could then be claimed.

In this case the buyer should have inspected the first lot of goods immediately upon receiving it and definitely before using any of it. But since the buyer did use the goods he would be responsible for paying for them. Once the good were determined to be unsafe the seller should have replaced both lots with the correct goods. When the seller agreed to provide the second replacement lot by a specified time then they had an obligation to make sure that the goods arrived at the buyers by the agreed upon time. The buyer had made a sale of the goods relying on the delivery of the goods by a particular date. Non-delivery of the goods by the date constituted breach on the part of the seller......

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