North Carolina Notice by Buyer of Rejection of Goods for Breach by Seller of Shipment Duties

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Multi-State
Control #:
US-02880BG
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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

Buyer's Remedies Cancel the contract. Recover the price paid for undelivered goods. Cover, or buy replacement goods. Recover damages for the difference in price. Recover damages based on current market price. Obtain specific performance for unique goods.

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.

As to the goods, he may withhold or stop delivery, identify conforming goods to the contract, or reclaim goods upon the buyer's insolvency. As to money, he may resell and recover damages or lost profits and recover the price. Unless they are inconsistent, these remedies are cumulative.

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 ...

If the parties do not agree to different remedies for the seller in case the buyer defaults, the UCC sets out remedies. As to the seller's obligation, he may cancel the contract. As to the goods, he may withhold or stop delivery, identify conforming goods to the contract, or reclaim goods upon the buyer's insolvency.

(6) Recover Damages: If the seller repudiates a contract or wrongfully refuses to deliver conforming goods, the buyer can sue to recover the difference between the contract price and the fair market price of the goods (at the time that the buyer learned of the breach), plus incidental and consequential damages, less ...

In order to establish breach of contract, a plaintiff must establish: 1) a valid and enforceable contract; 2) performance by the plaintiff; 3) breach by the defendant; and 4) injury arising as a result of defendant's breach.

There are several remedies for breach of contract, such as award of damages, specific performance, rescission, andrestitution. In courts of limited jurisdiction, the main remedy is an award of damages.

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North Carolina Notice by Buyer of Rejection of Goods for Breach by Seller of Shipment Duties