Legal Environment of Business - JUM8 - 05-25-21 - Module

The seller is obligated to deliver the goods that the buyer and seller have agreed upon in the contract. These goods or services must be delivered to the exact details and specifications that were agreed upon. The uniform commercial code uses the perfect tender rule which gives the buyer the power to reject the purchased goods that are shipped or delivered if the sellers tender of the goods is not perfect. However, if the goods conform to the agreed upon terms in the contract, the buyer does not have the right to reject the goods and payment must be made. This perfect tender rule is grounds for the formation of a breach of sales contract. Initially both parties must come to some sort of agreement, usually I the form of the purchase and sales of good or services. Once this agreement is settled by both parties, a sales contract is created where both parties are expected to provide their service to honor the contract. A breach of contract performance involves one of the parties not performing its specified duties I the contract, this could be delivering goods, making payment, or providing some sort of service. The non-breaching party is then able to remedy this breach of contract through several different venues. Liquidated damages are an option such as keeping any money or property that was used for the contract. Specific performance such as the seller ordering the buyer to buy any property or goods, they broke contract with. Injunction, which states that the court orders a party to not perform a certain task. Rescission allows a non-breaching party to cancel the contract, and lastly compensatory damages such as monetary damages for time or resources lost due to breach of contract.