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1) What is the seller\'s primary obligation under a sales contract? 2) What does

ID: 419589 • Letter: 1

Question

1) What is the seller's primary obligation under a sales contract?

2) What does the seller need to do in order to meet this obligation

a) If seller must ship the goods to buyer

b) If buyer is to get the goods from seller

3) Under what two circumstance will the seller be able to cure a defect in its delivery?

4) Read Maple Farms v City School District of Elmira Case in Point 22.9 on page 408-9..

a) Why did Maple Farms believe it was excused from its contractual performance?

b) Was Maple farms excused from its contractual performance? Why or why not?

5) What are buyer's performance obligations under a sales contract?

6) What right does a buyer have before it is obligated to perform?

7) How does a COD term affect the buyer's right in (6)?

? CASE IN POINT 22.9 Ina classic 1970s case, Maple Farms, Inc., entered a contract to supply a school district in New York with milk for one school year. The con- tract price was the market price of milk in June, but by December, the price of raw milk had increased by 23 per- cent. Maple Farms stood to lose $7,350 on this co (and more on similar contracts with other sc tricts). To avoid performing the contract, Maple Farims filed a suit and claimed that the unanticipated increas in a seller's costs made performance "impracti IS- es

Explanation / Answer

1. The seller's primary obligation in any contract is to deliver the good in the manner (according to the contract), in the accepted place, with the same quality and at the pre agreed time. at any cost, the delivery must be happens without any fail. If the seller becomes fail, then he called as defaulter and it means he breached the contract.

2. a. the seller must prepare all the ground work correctly to deliver goods to the buyer, i.e. transportation & its mode, date, time and place of delivery etc must be agrred by both the parties.

b. in the case of the buyer has to make arrangements for the delivery of goods, here also it is the same process. The buyer should plan to receive goods and for this he should arrange the delivery requirements mentioned in the above.

3. in any abnormal conditions like war between nations, or emergency in a nation, or any special issue raised by the local governments etc, in these times all the contracts can become avoid.

4. you did not provided the case