New York Notice by Buyer of Rejection of Goods for Breach by Seller of Shipment Duties

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Section 2-504 the Uniform Commercial Code provides: 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

When the seller is ready and willing to deliver the goods and requests the buyer to take delivery and the buyer does not within a reasonable time after such request take delivery of the goods he is liable to the seller for any loss occasioned by his neglect or refusal to take delivery, and also for a reasonable charge ...

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.

Under UCC, Section 2-601(a), rejection is allowed if the seller fails to make a perfect tender. The rejection must be made within a reasonable time after delivery or tender. Once it is made, the buyer may not act as the owner of the goods.

If a buyer wrongfully refuses to accept goods that conform to a contract, the seller may recover damages. either after finishing the job (and identifying the goods), or after stopping the job. On a lessee's insolvency, the lessor can stop delivery of the goods.

If a buyer refuses to accept delivery of goods, the seller can store the goods for the buyer and sue to recover the sales price if the goods are not readily resalable to another customer. Stoppage in transit is the right of an unpaid seller to stop goods in transit and order the carrier to hold them for the seller.

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.

The UCC permits the seller to also take other steps with respect to the goods directly affected or if the whole contract was breached, with respect to the whole undelivered balance of the contract. These remedies include withholding delivery of the goods, stopping the delivery of the goods or canceling the contract.

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 .

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New York Notice by Buyer of Rejection of Goods for Breach by Seller of Shipment Duties