Michigan Notice by Buyer of Rejection of Goods for Breach by Seller of Shipment Duties

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Multi-State
Control #:
US-02880BG
Format:
Word; 
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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

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 ...

Seller's Right to Cure First, if the non-conforming goods were rejected but the time for performance by the seller has not yet expired, the seller may notify the buyer of the seller's intention to cure the defect, and may then make delivery of conforming goods within the contract timeline.

Obtain Cover?On a seller's breach, the buyer may protect herself by obtaining cover. ?Cover means that the buyer may purchase needed goods or make another contract to purchase goods in substitution for those due under the breached contract from the seller.

If a seller has delivered nonconforming goods that have been rejected, upon notice of an intent to cure, the seller automatically then has 15 days to deliver conforming goods. In the case of Rosenfeld v. Basquiat, Basquiat sold several paintings to Rosenfeld and provided him with a written receipt.

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact, but may not seek damages. A warranty of good title means that a seller warrants that he or she has valid title to the goods and that transfer of the title is rightful.

The buyer may be able to bring an action against the seller for breach of contract if the goods which are delivered don't conform to the re- quirements of the contract. Once defective or non-conforming goods are delivered, the contractor may either accept or reject the products.

Perfect Tender Rule: If the goods delivered or the tender of delivery fail in any respect to conform with the terms of the contract, the buyer has the right to (i) accept the goods, (ii) reject the entire shipment, or (iii) accept part and reject part.

However, a merchant buyer who has rightfully rejected the goods is obligated to follow reasonable instructions from the seller with respect to the disposition of the goods in his possession or control, when the seller has no agent or business at the place of rejection.

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Michigan Notice by Buyer of Rejection of Goods for Breach by Seller of Shipment Duties