You are the Project Manager on a project where a seller is not performing in acc

Question

You are the Project Manager on a project where a seller is not performing in accordance with the contract. Specifically the products delivered by the seller so far do not meet the acceptance testing requirements described in the contract. To make matters worse, despite negotiations, the seller is refusing to admit that it has a problem or to correct the issues. Your procurement is at a standstill. Explain your some of your available options under the UCC before you have to resort to litigation or ADR.

Explanation / Answer

Though the most suitable condition for both parties would be to go through the contact paper once again and explain their understanding of the contract terms. It may be possible that some points have been miscontrued by the other party. In such cases clarifying your expectation or clarifying "what is meant by that particualr term" may resolve the issue.

Also buyer can ask the supplier to visit the project site and have first hand experience of the problem being faced by the buyer. This may change the point of view of the seller as he steps in to the buyer's shoes.

Article 2 of UCC deals with the sales of goods abd have clear guidelines on breach of contracts. In case of non-confirming goods if it has been sent with a note of accommodation then such cases are considered counteroffer and if accepted then this becomes the new contract.

If seller refuses to conform and buyer doesn't accept then buyer can sell the goods at public or private auction and credit the proceeds to amount owed and can move on with other suppliers.

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