Contracts - Excuse Based on Later Events
Get a hint
Excuse - Other's Breach - Article 2 vs. Common Law
Click the card to flip 👆
The other party's breach may provide an excuse for non-performance. Whether it does depends on the nature of the contract.
1. SALE OF GOODS (Article 2): If seller's performance is not perfect in every
respect ["Perfect Tender Rule"], buyer has pretty much free reign (3 options) i.e.
1) accept all goods
2) reject all goods
3) accept some, reject some
And whichever they choose, they have action for damages.
2. Common Law: only a material breach provides an excuse, but the injured party can recover damages for any breach of
contract, whether the breach is material or not.
2a) DIVISIBLE CONTRACT: Where payment is to be made on a per unit
basis, the breaching party can recover the contract price for any unit on
which he has substantially performed.
1. SALE OF GOODS (Article 2): If seller's performance is not perfect in every
respect ["Perfect Tender Rule"], buyer has pretty much free reign (3 options) i.e.
1) accept all goods
2) reject all goods
3) accept some, reject some
And whichever they choose, they have action for damages.
2. Common Law: only a material breach provides an excuse, but the injured party can recover damages for any breach of
contract, whether the breach is material or not.
2a) DIVISIBLE CONTRACT: Where payment is to be made on a per unit
basis, the breaching party can recover the contract price for any unit on
which he has substantially performed.
Click the card to flip 👆
