Puerto Rico 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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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

? 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. ? Exceptions to the Perfect Tender Rule.

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.

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.

(1) After a breach within the preceding section the buyer may "cover" by making in good faith and without unreasonable delay any reasonable purchase of or contract to purchase goods in substitution for those due from the seller.

Some of the most common sales agreement breaches include: The buyer misses the payment date. The seller fails to deliver the title deed. There are disputes over the amount or payment of closing costs. The property does not pass its inspection.

If a seller fails to deliver conforming goods, the measure of recovery in the buyer's suit for damages is the difference between the contract price and the market price at the place of delivery at the time the buyer learns of the breach.

If a party fails to either substantially or fully perform, the other party's remaining obligations, if any, under the contract are discharged. Time for Performance: If no time is stated in the contract, performance is due within a reasonable time.

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.

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Puerto Rico Notice by Buyer of Rejection of Goods for Breach by Seller of Shipment Duties