Business law cases

Business law cases

Contracts

According to the Article 2 of Uniform commercial code, the scope of the article can be discussed as unless the statement of the act would require, the article would be used for the transaction of goods. The article however would not be applicable to any other type of transaction which is considered as a contract which is unconditional in order to sell or present sale to work and act as a security transaction. Article also does not damage or revoke any sale regulating statute related to customers, farmers and other targeted class of buyers. This shows that various security transactions are not applicable through this article.

Based on the case the Section 2-106 can be put into concern which discusses the termination and cancellation of order which was done in the situation. The cancellation or termination is only viable prior to the delivery of the order if any of the parties have breached the contract. Based on the act that was done by John, the rejection was based on the pricing of the goods that was to be provided by John. According to John the price was high and that he bought it from another company with a cheaper price. Section 2-703 can be concerned which tells about the remedies that can be implemented in case of cancellation or rejection by the customer. The section includes a violation of the contract that is done by the buyer through wrong statement, or a wrong attempt to cancel the acceptance of the goods. It also includes a wrongful act or failure to comply according to the contract that was originally to be followed and a failure of payment. If any of these situations happen then the seller, in this case the company would be liable to apply many remedies towards the buyer. These remedies include holding back the delivery of goods stop the delivering under the Act of 2-705 and 2-704. The seller is also liable to recover any of the goods that the buyer might have and ask for a payment of the goods. Seller also has the authority to cancel the goods and to resell them under the section of 2-703. Recovery of damages in also an option. Recovery of the damages that are caused to the seller due to the non acceptance and revoking the acceptance of goods also lie under this section. This also applies the recovery of any liquidated damages in this concern. Finally the section also states that under the circumstances where any of the above are not acceptable then the seller has the authority to recover the damages in any reasonable manner.

The case that has been provided can be fully discussed through the Section 2-703 and 2-106. According to the situation what John did was not acceptable as the confirmation letter was sent prior to the delivery and any cancellation should have occurred at that moment. Upon delivery John is not liable to reject the goods based on the pricing of the ...