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Definition
The Buyer Accepted the goods if after a reasonable amount of time to inspect them he
1. tells the seller he accepts
2. exercises dominion over goods
3. fails to reject |
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Term
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Definition
The Buyer can revoke his acceptance if the non-conformity substantially impairs its value to him if he accepted it
1. on the reasonable assumption that its non-conformity would be cured OR
2. Without discovery of nonconformity because it was difficult or seller kept assuring him
3. Revokes within a reasonable time
4. Revokes before change in goods |
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Term
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Definition
| If buyer has accepted but wishes to obtain damages for seller's breach, he must notify the seller of the breach within a reasonable time after he discovers it |
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Term
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Definition
If buyer has notified seller under 2-607(3), he can recover damages for
1. Any non-conformity of tender resulting from the seller's breach as determined in any manner which is reasonable
2. the measure of damages for breach of warranty is a. (Value of the goods if they had conformed) – (Value of accepted goods at the time of acceptance) + (Incidental and Consequential Damages)
3. Special Circumstances |
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Term
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Definition
1.Incidental: Expenses incurred in inspection, receipt, transportation and care/custody of goods rightfully rejected, any reasonable cover expenses, and any other reasonable expenses incident to the breach or delay
2.Consequential: Loss resulting from requirements and needs of buyer that the seller knew or should of known would be incurred that could not be prevented by cover or otherwise and injury to property or person resulting from breach of warranty |
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Term
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Definition
| Buyer may recover the money he has paid on the purchase price along with damages under 712 or 713 |
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Term
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Definition
| Injured buyers who cover can recover(Cover/substitute price-Contract price) + (Incidental + Consequential Damages) – (Expenses Saved as a result of Seller’s Breach) |
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Term
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Definition
| Injured Buyers who do not cover can recover(Market price - Contract Price) + (Incidental + Consequential Damages) – (Expenses Saved) |
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Term
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Definition
| Buyer has an obligation to mitigate consequential damages by cover if possible |
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Term
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Definition
| If the goods are unique and the buyer is unable to cover he may be entitled to specific performance |
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Term
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Definition
Seller can recover the Price buyer agreed to pay + Incidental Damages if the buyer has
1. accepted the goods
2. buyer has the risk of loss
3. goods are not reasonably resalable |
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Term
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Definition
Resale Formula:1. If seller is able to resell the goods he may recover from the buyer that breached: Contract Price – Resell Value + Incidental Damages – Expenses Saved
2. Seller must give the buyer notice for BOTH Private and Public (Auction) resells |
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Term
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Definition
Market Formula:
1. Use only when there is no hard evidence and an estimated resell value of the goods at the time of the breach is necessary to be fair
a. Applies when Buyer, after the breach, decides to keep the product
b. Must be complete goods
2. Hypothetical formula that is barely used because
a. Cannot be used for incomplete goods because you can’t determine the market price
b. Buyer can prevent seller from using this if it wrongfully enriches the seller or if one of the other formulas works
3. MP – Contract Price + Incidental damages – Expenses Saved as a result of buyer’s breach |
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