Georgia Notice by Buyer of Rejection of Goods Based on Obvious Nonconformity

State:
Multi-State
Control #:
US-02883BG
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Rich Text
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Description

Section 2-504 of the Uniform Commercial Code provides in part as follows:


Where the seller is required or authorized to send the goods to the buyer and the contract does not require him to deliver them at a particular destination, then unless otherwise agreed he must


" Put the goods in the possession of such a carrier and make such a contract for their transportation as may be reasonable having regard to the nature of the goods and other circumstances of the case; and

" Obtain and promptly deliver or tender in due form any document necessary to enable the buyer to obtain possession of the goods or otherwise required by the agreement or by usage of trade; and

" promptly notify the buyer of the shipment.

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FAQ

(2) Acceptance of goods by the buyer precludes rejection of the goods accepted and, if made with knowledge of a nonconformity, cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured.

If a buyer or lessee repudiates a contract or wrongfully refuses to accept the goods, the amount of damages is usually the difference between the contract price and the market price (at the time and place of tender), plus incidental damages .

Process for Rejection of Goods The buyer is responsible for providing a notice of rejection letter to the supplier describing the defect(s) that renders the delivery as non-conforming to the Contract/PO, what the delivery and inspection criterion was, and how the delivered product does not conform.

An acceptance may be revoked at any time before the communication of the acceptance is complete as against the acceptor, but not afterwards.

Section 69(1) of the Uniform Sales Act provides: "Where there is a breach of warranty by the seller, the buyer may, at his election: (a) accept or keep the goods [and recoup or recover damages, or] ; (b) refuse to accept the goods . . .; (c) rescind the contract to sell or the sale." In this article, "rejection" refers ...

(2) Revocation of acceptance must occur within a reasonable time after the buyer discovers or should have discovered the ground for it and before any substantial change in condition of the goods which is not caused by their own defects. It is not effective until the buyer notifies the seller of it.

A fundamental principle of contract law is that a party that accepts the delivery of nonconforming goods must pay the full contract price.

(1) The buyer may revoke his acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to him if he has accepted it (a) On the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or (b) Without discovery of such nonconformity if his ...

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Georgia Notice by Buyer of Rejection of Goods Based on Obvious Nonconformity