Business Law Chapter 24

This Is Remedies. This Is Breach.  

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Side ASide B
Obligations of sellers/lessors and buyers/lessees are determined by what three things
1. terms the parties agree on2. custom3. rules of UCCstatute of limitation=4 years
Goal of contract remedies
to fulfill expectations and intentions of parties to agreement, give them the benefit of the bargain negotiated
Remedies available to sellers and lessors under UCC
1. Cancel the Contract (must notify buyer/lessee)2. Withhold Delivery 3. Sell or otherwise dispose of goods (allows seller to recover difference between resale...
Liquidated Damages
damages identified before the breach occursParties are free to negotiate a liquidated damages clause, but it cannot be punitive and must be reasonableIf not negotiated, UCC allows non-breaching...
Remedies available to Buyers and Lessees under the UCC
1. Cancel Contract2. Obtain Cover (subsititute goods for those due under the sales or lease agreement)3. Sue to recover damages (entitled to incidental and consequential...
Elements necessary to obtain legal cover
Buyer must:1. Demonstrate good faith in obtaining the substitute goods2. Pay a reasonable amount for the substitute goods3. Act without unreasonable delay in purchasing the substitute...
Modification of/Limitation to Remedies Otherwise Provided by UCC
Parties to sales and lease contracts are allowed to modify/limit remediesCourts uphold modifications/limitations to remedies, unless remedies fail in their essential purpose.

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