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Jane T (LLC)
Jane T (LLC), Attorney
Category: Business Law
Satisfied Customers: 8435
Experience:  Worked in corporation's law department; business formations, formalities, and other business matters
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Delhi Corporation entered into a contract with major ...

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Delhi Corporation entered into a contract with major suppliers,Inc.,to purchase several used computers from major.Delhi is engaged in the business of selling new and used computers to the general public. The contract required major to ship the goods to Delphi by common carrier FOB Majors loading dock. Delphi refused to accept the computers even though they were in all respects conforming to the contract. As the seller, what right does Major Suppliers have?                                          ;                                Saxby Corporation sold goods to scotsman. Scotsman arbitrarily refused to pay the purchase price. under what circumstances will saxby not be able to recover the price if it seeks this remedy instead of other possible remedies.
Submitted: 9 years ago.
Category: Business Law
Expert:  Jane T (LLC) replied 9 years ago.

DearCustomer

1. Delhi Corporation entered into a contract with major suppliers,Inc.,to purchase several used computers from major.Delhi is engaged in the business of selling new and used computers to the general public. The contract required major to ship the goods to Delphi by common carrier FOB Majors loading dock. Delphi refused to accept the computers even though they were in all respects conforming to the contract. As the seller, what right does Major Supplieres have ?

Because both Delhi and Major are merchants their agreement is subject to the Uniform Commerical Code (UCC). Because the shipment was made FOB at Major's loading dock, ownership of the goods passed to Delhi when the goods were shipped. Therefore, Delhi already owns the goods and should pay Major. Because Delhi already owns the goods, its failure to accept delivery is a wrongful repudiation of the goods. UCC Article 2, sections 2-703 and 2-708 provides a seller, whose buyer has repudiated the goods may pursue any of the following remedies:

  1. cancel the sale;
  2. resell the goods to others and recover any damages resulting from the repudiation;
  3. sue for damages caused by the non-acceptance or repudiation (normally the difference between the price the goods were sold to the buyer and any market price difference at the time the seller sells the goods to another party);
  4. demand specific performance from the buyer;
  5. recover any liquidated damages specified in their contract;
  6. otherwise recover damages in any manner that is reasonable under the circumstances;

2. Saxby Corporation sold goods to scotsman. Scotsman arbitrarily refused to pay the purchase price. under what circumstances will saxby not be able to recover the price if it seeks this remedy instead of other possible remedies.

If Saxby and Scotsman are both merchants under the Uniform Commercial Code (UCC) then the circumstances under which Saxby would not be able to recover the price if it seeks to recover the price of the sale, would be determined by the UCC. Under the UCC, if the delivery of goods by Saxby failed to comply with the requirements of the contract between the parties and were rightfully rejected by Scotsman then Saxby would not be able to recover the price it sold the goods at to Scotsman.

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