Utah Notice by Buyer of Rejection of Goods Based on Obvious Nonconformity

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US-02883BG
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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 ...

Once the other party accepts, however, you'll have a binding agreement. Revocation must happen before acceptance. An exception to this rule occurs if the parties agree that the offer will remain open for a stated period of time.

Once the buyer accepts, she is obligated to pay at the contract rate and loses the right to reject the goods. Uniform Commercial Code, Section 2-607.

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.

Basics of Rejection If the goods offered in a contract do not conform to their contractual description, the buyer has the right to reject those goods. If the buyer wants to reject the goods, however, they should make their rejection within a reasonable amount of time after delivery.

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.

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Utah Notice by Buyer of Rejection of Goods Based on Obvious Nonconformity