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Massachusetts
Notice by Buyer of Rejection of Goods - Risk of Loss Remains on...

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

Category:

Civil Actions - Notices

State:

Multi-State

Control #:

US-02882BG

Format:

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

If a seller delivers defective goods, the buyer does not lose the right to object to the breach of contract if the buyer: accepts the goods.

Goods Held by the Seller: If the seller is a merchant, risk of loss passes to the buyer at the time he or she takes physical possession of the goods. If the seller is a non-merchant, risk of loss passes to the buyer when the seller tenders the goods to the buyer.

(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.

So if there is a breach by the seller (delivery of nonconforming goods), the risk of loss never shifts except if the buyer has taken possession of the nonconforming goods; in that case, the buyer does have the risk of loss insofar as her insurance covers the loss.

If the contract of sale involves carriage of the goods and the seller is not bound to hand them over at a particular place, the risk passes to the buyer when the goods are handed over to the first carrier for transmission to the buyer in ance with the contract of sale.

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

Uniform Commercial Code Overview The UCC (Uniform Commercial Code) says if a seller supplies non-conforming goods, the buyer can accept or refuse to accept all the goods, or accept some while rejecting some.

???????? A buyer who accepts nonconforming goods must notify the breaching party of the breach within a reasonable time to permit the breaching party to cure; the buyer?s failure to do so will bar any claim for breach.

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