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New Mexico
Notice by Buyer of Rejection of Goods Based on Obvious Nonconformity

New Mexico Notice by Buyer of Rejection of Goods Based on Obvious Nonconformity

Category:

Civil Actions - Notices

State:

Multi-State

Control #:

US-02883BG

Format:

Instant download

Description

Section 2-504 of the Uniform Commercial Code provides in part as follows:

Where the seller is required or authorized to send the goods to the buyer and the contract does not require him to deliver them at a particular destination, then unless otherwise agreed he must

" Put the goods in the possession of such a carrier and make such a contract for their transportation as may be reasonable having regard to the nature of the goods and other circumstances of the case; and

" Obtain and promptly deliver or tender in due form any document necessary to enable the buyer to obtain possession of the goods or otherwise required by the agreement or by usage of trade; and

" promptly notify the buyer of the shipment.

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FAQ

2. Revocation of acceptance is possible only where the non-conformity substantially impairs the value of the goods to the buyer.

A fundamental principle of contract law is that a party that accepts the delivery of nonconforming goods must pay the full contract price.

A buyer who rightfully rejects nonconforming goods may obtain cover or cancel the contact, but may not seek damages. A warranty of good title means that a seller warrants that he or she has valid title to the goods and that transfer of the title is rightful.

If a buyer decides to reject delivered goods that fall short of the specifications in a purchase contract, they have to do it reasonably soon after the goods delivery. Also, a buyer isn't bound to pay for the non-conforming goods they reject.

Process for Rejection of Goods The buyer is responsible for providing a notice of rejection letter to the supplier describing the defect(s) that renders the delivery as non-conforming to the Contract/PO, what the delivery and inspection criterion was, and how the delivered product does not conform.

? Perfect Tender Rule: If the goods delivered or the tender. of delivery fail in any respect to conform with the terms of the contract, the buyer has the right to (i) accept the goods, (ii) reject the entire shipment, or (iii) accept part and reject part. ? Exceptions to the Perfect Tender Rule.