Contracts: Performance: Performance of K's for Sale of Goods: Perfect Tender Rule
- Perfect Tender Rule: a seller must deliver perfect goods in the right place at the right time. If tender is not perfect, buyer has the right to reject the goods.
- Cure: A seller who fails to make perfect tender may have an option to cure. It depends on whether the time for the seller’s performance had expired.
- Seller contracts to deliver 50 green T-shirts to Buyer in exchange for $1,000 to be delivered no later than June 6. Seller delivers 50 yellow T-shirts instead on May 5. Buyer rejects the yellow T-shirts. Seller still has the option of delivering the green T-shirts by the June 6 deadline.
- Same facts, except Seller delivers yellow T-shirts on June 6. Buyer rejects them. In the past, Buyer had accepted yellow T-shirts instead of green ones in exchange for a 10% discount. Seller still has a right to cure even through the contract deadline has passed. The fact that Seller had reason to believe that B would take Yellow T-shirts is based on their prior conduct.
- Look for specific facts where B is flexible – she has a right to cure.