Contract Law II: Seller's Obligations in Sale of Goods Contract
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Questions and Answers

When does the buyer lose the right to rely on a lack of conformity of the goods?

  • Within a period of two years from the date of delivery (correct)
  • Immediately upon delivery
  • 6 months from the date of delivery
  • Within a year from the date of delivery
  • What is the subjective time period for notifying the seller of a lack of conformity?

  • 6 months
  • 2 years
  • Immediately or sometimes one day (correct)
  • 14 days
  • What is required for a notice of lack of conformity to be considered sufficiently specific?

  • Specifying the nature of the lack of conformity (correct)
  • General statements that the goods are not as expected
  • Paying the full purchase price
  • Notifying within 6 months of delivery
  • In the example given, why did the buyer refuse payment and declare contract avoidance?

    <p>Defects in material and finish of the shoes</p> Signup and view all the answers

    What is the objective time period under Art 39 (2) CISG for notifying the seller of a lack of conformity?

    <p>2 years</p> Signup and view all the answers

    What time limit applies for notifying the seller of a lack of conformity if inconsistent with a contractual guarantee period?

    <p>Based on the contractual guarantee period</p> Signup and view all the answers

    What is the consequence if the buyer fails to notify the seller about a defect under Article 44 CISG?

    <p>The buyer can only recover a price reduction and damages, but not loss of profit.</p> Signup and view all the answers

    When can the seller rely on the provisions of Articles 38 and 39 under CISG, even if the lack of conformity relates to facts of which they knew or could not have been unaware?

    <p>If the seller discloses the defects to the buyer after the delivery, but before the expiration of the warranty period.</p> Signup and view all the answers

    What is the purpose of the inspection and notification duties under CISG?

    <p>To allow the buyer to claim damages or price reduction.</p> Signup and view all the answers

    What is the significance of the seller's knowledge or awareness of the defect under Article 40 CISG?

    <p>The seller can rely on Articles 38 and 39 only if they knew or could not have been unaware of the defect and did not disclose it to the buyer.</p> Signup and view all the answers

    Which of the following is a requirement for the buyer to claim damages under Article 44 CISG if they failed to notify the seller about a defect?

    <p>The buyer must have an excuse for not notifying the seller.</p> Signup and view all the answers

    According to Article 35(1) CISG, what is the seller's obligation regarding the delivered goods?

    <p>The seller must deliver the goods of the quantity, quality, and description required by the contract.</p> Signup and view all the answers

    Under what circumstances is the seller liable for any lack of conformity according to Article 36(1) CISG?

    <p>The seller is liable for any lack of conformity that exists at the time when the risk passes to the buyer, even if it becomes apparent only after that time.</p> Signup and view all the answers

    What does the passing of risk refer to in Article 36(1) CISG?

    <p>The passing of risk refers to the point in time when the risk associated with the goods is transferred from the seller to the buyer.</p> Signup and view all the answers

    What are the determinate characteristics of the goods as per Article 35 CISG?

    <p>The determinate characteristics of the goods are quantity, quality, and description as required by the contract.</p> Signup and view all the answers

    What is the seller's liability under Article 36(2) CISG for any lack of conformity that occurs after the passing of risk?

    <p>The seller is liable for any lack of conformity that occurs after the passing of risk and is due to a breach of any of his obligations, including a breach of any guarantee.</p> Signup and view all the answers

    What are the main obligations of the seller in a sale of goods contract, as per the text?

    <p>The main obligations of the seller are to deliver the purchased goods, transfer the property in the goods, and hand over the documents relating to the goods.</p> Signup and view all the answers

    In which situation can examination of goods be deferred until after they have arrived at their new destination?

    <p>When the goods are redirected in transit or redispatched by the buyer without a reasonable opportunity for examination by him and the seller knew or ought to have known of the possibility of such redirection or redispatch</p> Signup and view all the answers

    What is the time limit for inspection according to Article 38(1) CISG?

    <p>Within as short a period as is practicable in the circumstances</p> Signup and view all the answers

    What is a factor that determines the reasonable opportunity to examine the goods on a case-by-case basis?

    <p>The nature of the goods</p> Signup and view all the answers

    Why was an earlier examination of the deep frozen cheese not possible in the example?

    <p>Because the cheese was frozen</p> Signup and view all the answers

    What determines the complexity of the inspection of goods?

    <p>The complexity of the goods themselves</p> Signup and view all the answers

    When must the buyer notify the seller of potential nonconformity?

    <p>Within a reasonable period of time</p> Signup and view all the answers

    What is the consequence if the buyer fails to give notice of the lack of conformity by the time the risk has passed?

    <p>The buyer has the burden of proof that the goods lacked conformity before the passing of risk</p> Signup and view all the answers

    What is the primary reason why the duty to inspect and notify is important from the seller's perspective?

    <p>To provide legal security for the seller</p> Signup and view all the answers

    What is the purpose of Article 38(1) in a sale of goods contract?

    <p>To ensure the buyer examines the goods in a timely manner</p> Signup and view all the answers

    When can the examination of goods be deferred according to Article 38(2)?

    <p>When the contract involves carriage of the goods</p> Signup and view all the answers

    What is the buyer's obligation regarding the inspection of goods in a sale of goods contract?

    <p>To cause them to be examined, within as short a period as is practicable</p> Signup and view all the answers

    What is the outcome in the scenario where company B discovers that almost all the glasses are broken after storing them for a month?

    <p>Company B can request a refund from company A</p> Signup and view all the answers

    In a sale of goods contract, the buyer is always required to notify the seller of potential nonconformity within an objective time period specified by CISG.

    <p>False</p> Signup and view all the answers

    In the example of the Dutch company contracting for deep frozen cheese, the buyer argued that the cheese was contaminated with worms.

    <p>False</p> Signup and view all the answers

    Under the CISG, the examination of goods is considered simple when the goods are food products.

    <p>False</p> Signup and view all the answers

    The buyer in the scenario involving the deep frozen cheese claimed that they couldn't examine the cheese earlier because it was delivered melted.

    <p>False</p> Signup and view all the answers

    If the seller knew or ought to have known of the possibility of redirection or redispatch of goods, the buyer must always defer examination until after the goods have arrived at the new destination.

    <p>False</p> Signup and view all the answers

    The nature of the alleged defects in the goods always determines whether the buyer has had a reasonable opportunity to inspect the goods under Article 38(1) CISG.

    <p>False</p> Signup and view all the answers

    Under Article 38(3) CISG, if the goods are redirected in transit and then re-dispatched to their final destination, the examination period always starts from the time the goods have arrived at their final destination.

    <p>False</p> Signup and view all the answers

    The Court held that the duty to examine the steel sheets lay with the German steel merchant, even though the sheets were rolled up and required examination only by the end purchaser.

    <p>False</p> Signup and view all the answers

    If the goods are redirected in transit, the examination can be deferred until after the goods arrive at their original destination, according to Article 38(3) CISG.

    <p>False</p> Signup and view all the answers

    According to the rationale behind Article 38(3) CISG, the need to open the goods' packaging before they arrive at their new destination is mandatory.

    <p>False</p> Signup and view all the answers

    The duty to examine the goods falls solely on the end purchaser when the goods are redirected in transit and are economically viable for examination only by the end purchaser.

    <p>True</p> Signup and view all the answers

    For goods transported and redirected in transit, the examination of the goods can be carried out by any of the parties involved in the transaction.

    <p>False</p> Signup and view all the answers

    The buyer has the burden of proof that the goods lacked conformity before the passing of risk only if they have given notice of the lack of conformity.

    <p>False</p> Signup and view all the answers

    According to Article 38(1), the buyer must examine the goods within a reasonable period that is determined by the seller.

    <p>False</p> Signup and view all the answers

    The duty to inspect and notify is only important from the buyer's perspective.

    <p>False</p> Signup and view all the answers

    Company B can request the money back from company A because they inspected the goods within a reasonable period.

    <p>True</p> Signup and view all the answers

    The seller's knowledge or awareness of the defect is relevant in determining the buyer's burden of proof.

    <p>False</p> Signup and view all the answers

    Examination of goods can be deferred until after the goods have arrived at their destination only if the contract does not involve carriage of the goods.

    <p>False</p> Signup and view all the answers

    The seller is only liable for any lack of conformity which exists at the time when the risk passes to the buyer if the buyer was aware of the defect.

    <p>False</p> Signup and view all the answers

    The passing of risk happens when the goods are delivered to the buyer.

    <p>False</p> Signup and view all the answers

    The seller's main obligations include delivering the goods, transferring the property, and providing a guarantee for the quality of the goods.

    <p>False</p> Signup and view all the answers

    The buyer can inspect the goods at any time after delivery and notify the seller of any defects.

    <p>False</p> Signup and view all the answers

    The seller is liable for any lack of conformity that occurs after the time the risk passes to the buyer, unless it is due to a breach of the buyer's obligations.

    <p>False</p> Signup and view all the answers

    The buyer can claim damages under Article 44 CISG without notifying the seller about a defect if the seller was aware of the defect.

    <p>False</p> Signup and view all the answers

    The buyer has to give notice to the seller specifying the nature of the lack of conformity within a specific time period after he has discovered it or ought to have discovered it.

    <p>False</p> Signup and view all the answers

    The seller is liable for any lack of conformity of the goods if the buyer does not give notice to the seller within a reasonable time.

    <p>False</p> Signup and view all the answers

    The reasonable time for notice is determined solely by the terms of the contract.

    <p>False</p> Signup and view all the answers

    The buyer has to inspect the goods immediately after they are received.

    <p>False</p> Signup and view all the answers

    The notice of lack of conformity is considered sufficiently specific if it is given orally.

    <p>False</p> Signup and view all the answers

    The buyer's right to rely on a lack of conformity of the goods is not affected if he gives notice to the seller after a reasonable time.

    <p>False</p> Signup and view all the answers

    Study Notes

    Buyer Rights and Duties

    • The buyer loses the right to rely on a lack of conformity if they fail to notify the seller within the specified timeframes.
    • Subjective time period for notifying the seller of a lack of conformity generally aligns with when the buyer discovers or ought to have discovered the issue.
    • A notice of lack of conformity is considered sufficiently specific when it clearly identifies the nature of the defect, rather than being vague.

    Contract Avoidance and Payment

    • A buyer may refuse payment and declare contract avoidance if substantial defects impact the usability or quality of the goods received.

    Objective Time Period for Notification

    • The objective time period under Article 39(2) CISG for notifying the seller of a lack of conformity is within two years from the date of delivery.

    Inconsistent Contractual Guarantees

    • If a lack of conformity notification is inconsistent with a contractual guarantee period, the time limit for notice is determined by the guarantee period instead.

    Consequences of Notifying Defects

    • Failure to notify the seller about a defect under Article 44 CISG can result in the buyer losing the right to claim damages unless the seller was aware of the defect.

    Seller's Knowledge and Provisions

    • Sellers can still rely on Articles 38 and 39 CISG provisions concerning defects, even if they knew or should have known about the conformity issues unless specified otherwise.

    Inspection and Notification Duties

    • Inspection and notification duties under CISG aim to ensure prompt communication of defects, allowing for potential remedies.
    • The seller's knowledge of the defect under Article 40 CISG can impact the buyer's ability to claim damages.

    Seller's Obligations and Liability

    • According to Article 35(1) CISG, sellers must deliver goods that conform to the contract in terms of quantity, quality, and specifications.
    • Under Article 36(1) CISG, the seller is liable for any lack of conformity if it exists at the time risk passes to the buyer.

    Passing of Risk

    • Passing of risk refers to the moment the buyer acquires the risk of loss or damage to the goods, typically occurring upon delivery.

    Determinants of Goods Characteristics

    • Determinate characteristics of goods in Article 35 CISG include compliance with contractual specifications, quality, and fitness for purpose.

    Seller’s Liability After Passing of Risk

    • Under Article 36(2) CISG, sellers are liable for defects post-passing of risk only if those defects arise from a breach of their obligations.

    Inspection Obligations

    • Buyers must inspect goods and notify the seller of nonconformity within a reasonable time, typically starting from delivery.
    • Article 38(1) CISG mandates that goods must be examined within a reasonable period, impacted by the nature of the goods and inspection complexities.

    Deferral of Inspection

    • Goods can be inspected after reaching their new destination if circumstances, such as re-dispatch in transit, apply under Article 38(2) and (3) CISG.

    Buyer’s Burden of Proof

    • The buyer must prove nonconformity existed before risk passed only if they notified the seller of such nonconformity.

    Significance of Timely Notification

    • Timely notification by the buyer is crucial, as failure to notify can lead to loss of rights and remedies associated with defects.

    Conclusion on Buyer’s Rights and Seller’s Obligations

    • The seller's main obligations include delivering compliant goods, transferring property, and assuring quality, while the buyer has the duty to inspect and notify of any defects promptly.

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    Description

    Learn about the main obligations of a seller in a sale of goods contract, including delivering the purchased goods, transferring property, and handing over related documents. Understand the requirement for the delivered goods to conform to the contract as per Article 35(1) CISG.

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