Kentucky Notice by Buyer of Rejection of Goods - Risk of Loss Remains on Seller

State:
Multi-State
Control #:
US-02882BG
Format:
Word; 
Rich Text
Instant download

Description

In this form the buyer giving notice of its rejecting delivery of the goods. This is covered by Section 2-602 of the Uniform Commercial Code, which state:


Rejection of goods must be within a reasonable time after their delivery or tender. It is ineffective unless the buyer seasonably notifies the seller. Subject to the provisions of the two following sections on rejected goods (Sections 2-603 and 2-604). After rejection any exercise of ownership by the buyer with respect to any commercial unit is wrongful as against the seller; and


" If the buyer has before rejection taken physical possession of goods in which he does not have a security interest under the provisions of this Article (subsection (3) of Section 2-711), he is under a duty after rejection to hold them with reasonable care at the seller's disposition for a time sufficient to permit the seller to remove them; but


" The buyer has no further obligations with regard to goods rightfully rejected.

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FAQ

Revocations are either express or implied. An express revocation is one that must be in writing in order for it to be legally binding. For example, revoking a Power of Attorney agreement must usually be in writing, depending on the state's laws. An implied revocation doesn't have to be in writing as it is implied.

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 ...

Rejection occurs before a buyer accepts the goods, whereas revocation refers to situations where a buyer has already accepted the goods but the buyer takes back their acceptance. The UCC gives buyers the right to revoke acceptance of goods only in very limited circumstances.

Revocation. n. 1) mutual cancellation of a contract by the parties to it. 2) withdrawing an offer before it is accepted ("I revoke my offer"). 3) cancelling a document before it has come into legal effect or been acted upon, as revoking a will.

Risk of loss is the allocation of responsibility for covering the Risk of damage to or loss of goods after a sale has been completed, but before delivery. If the seller bears risk of loss during transport, the seller has a responsibility to provide substitute goods should the goods get lost or destroyed in transit.

Revocation is when the person that's made an offer decides he wants to take it back. He can revoke the offer as long as there has not yet been an acceptance. Rejection is when an offeree says, "No" to the offer. The offer then dies.

(1) Where a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk of their loss remains on the selleruntil cure or acceptance.

Thus an important difference between rejection and revocation is the time in the sequence of events at which they occur. Re- jection forecloses any possibility of acceptance of the goods, while revoca- tion can occur only after the goods have been accepted.

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Kentucky Notice by Buyer of Rejection of Goods - Risk of Loss Remains on Seller