Question: Answer question on basis of contract below Please reference the Sales Contract by clause number as you answer the questions. Remember, this is a contract
Answer question on basis of contract below Please reference the Sales Contract by clause number as you answer the questions. Remember, this is a contract under the UCC.
You contend that you received non-conforming goods as a result of an ambiguity in the contract. You ordered goods thinking you would get a particular product. You wanted Razor scooters. That was the original oral communication when you first contacted the selling merchant. You both talked about and agreed on Razor scooters. Thereafter, in phone conversations, you and the seller just used the phrase scooters. The seller prepared a written contract. The contract was signed by both parties. The selling merchant then shipped scooters that are in perfect condition but they are not Razor scooters. The selling merchant believes the goods are conforming.
3) Upon immediate receipt and inspection of the goods, what are all your merchant options under the contract and at law?
4) Under this scenario, you discover an employee signed for the receipt of the scooters over (90) days ago and they have just been sitting in a warehouse. What are your options now as the Buyer pursuant to the contract?
CONTRACT: UCC SALES CONTRACT This contract for the sale of goods is between Donald, an LLC organized under the laws of the State of CA, the Buyer , and Tome Jones, a sole proprietor, organized under the laws of the State of Deliah , the Seller . The parties agree as follows: 1. The Seller shall sell to the Buyer and the Buyer shall purchase from the Seller the goods set forth on Exhibit A in the quantities and at the prices stated Goods in Exhibit A. 2. Unless otherwise stated in Exhibit A, payment for the Goods is due within 30 days of the date of the Sellers invoice, which date will not be before the date of the Sellers delivery of the Goods 3. The Seller shall deliver the Goods to the Buyers facility in Pussycat Alley, City of Deliah, and title to and risk of loss of the Goods will pass to the Buyer upon such delivery by the Seller. Any stated delivery dates are approximate. The Seller will not be liable for any losses, damages, penalties, or expenses for failure to meet any delivery date. 4. The Seller disclaims all warranties of quality, whether express or implied, including the warranties of merchantability and fitness for particular purpose. The Buyer acknowledges that it has not been induced by any statements or representations of any person with respect to the quality or condition of the Goods and that no such statements or representations have been made. The Buyer acknowledges that it has relied solely on the investigations, examinations, and inspections as the Buyer has chosen to make upon delivery and that the Seller has afforded the Buyer the opportunity for full and complete investigations, examinations, and inspections. 5. The Seller will not be liable for any indirect, special, consequential, or punitive damages (including lost profits) arising out of or relating to this agreement or the transactions it contemplates whether for breach of contract, tort, negligence, or other form of action and irrespective of whether the Seller has been advised of the possibility of any such damage. In no event will the Sellers liability exceed the price the Buyer paid to the Seller for the specific Goods provided by the Seller giving rise to the claim or cause of action. 6. No action arising out of or relating to this agreement or the transactions it contemplates may be commenced against the Seller more than 12 months after the basis for such claim could reasonably have been discovered. 7. The Buyer hereby grants to the Seller a security interest in the Goods sold to the Buyer under this agreement and any proceeds therefrom (including accounts receivable), until payment in full for the Goods has been received by the Seller. The Buyer shall sign and deliver to the Seller any document to perfect this security interest that the Seller reasonably requests. 8. (a) The laws of the CA shall govern all matters arising out of or relating to this agreement and the transactions it contemplates, including, without limitation, its interpretation, construction, validity, performance (including the details of performance), and enforcement. (b) A party bringing a legal action or proceeding against the other party arising out of or relating to this agreement or the transactions it contemplates must bring the legal action or proceeding in any court of the CA. Each party to this agreement consents to the exclusive jurisdiction of the courts of the State of CA. 9. The Seller will not be liable for delays in performance or for non-performance due to unforeseen circumstances or causes beyond the Sellers reasonable control. 10. The Buyer may not assign any of its rights under this agreement or delegate any performance under this agreement, except with the prior written consent of the Seller. Any purported assignment of rights or delegation of performance in violation of this section is void. 11. In any adversarial proceedings between the parties arising out of this agreement or the transactions it contemplates, the prevailing party will be entitled to recover from the other party, in addition to any other relief awarded, all expenses that the prevailing party incurs, including legal fees and expenses. 12. This agreement constitutes the entire agreement between the parties with respect to the subject matter of this agreement and supersedes all other agreements, whether written or oral, between the parties. 13. No amendment to this agreement will be effective unless it is in writing and signed by both parties. 14. This agreement will become effective when both parties have signed it. The date this agreement is signed by the last party to sign it (as indicated by the date associated with that partys signature) will be deemed the date of this agreement. 15. This agreement may be signed in one or more counterparts, which together will form a single agreement. This agreement may be signed electronically. Each party is signing this agreement on the date stated opposite that partys signature. Donald, LLC (e-signature) Date: 1/1/2020 Tome Jones (e-signature) Date: 1/2/2020 EXHIBIT A Product Ordered - Scooters Quantity Ordered 50 Price per Unit - $200.00 US per Razor Scooter Total Contract Price for Scooters - $10,000 USD
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