On June 1, Nelbell Motors, a used-car dealer, wrote a letter to Oskern, which st
ID: 345409 • Letter: O
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On June 1, Nelbell Motors, a used-car dealer, wrote a letter to Oskern, which stated, "We have a 1989 Malibu Chevrolet in mint condition that we will sell you for $14,500 at any time before July 1.[Signed]NewtownMotors By June 15, having heard nothing from Oskern, Nelbell Motors sold the Malibu to another party. On June 25, Oskern told Nelbell Motors that he accepted the offer and tendered $14,500. When Nelbell Motors told Oskern it had sold the car to another party, Oskern claimed Nelbell Motors had breached their contract. a.State and explain the section(s) of the UCC that applies in this situation. b.State whether there is a contract between the parties based on the UCC. c. Apply the law to the facts and state whether Nelbell has breached a contract. Malloy orders from Paulsen one thousand widgets of Stenson brand widgets from Lot A at list price to be shipped F.O.B. Paulsen's city via Speedy Freight Lines. Paulsen receives the order and immediately sends Malloy an acceptance of the order with a promise to ship promptly Paulsen later separates the one thousand widgets of Stenson brand widgets and prints Malloy's name and address on each case. The widgets are placed on Paulsen's dock, and Speedy Freight is notified to pick up the shipment. The night before the pickup by Speedy Freight, through fault of Paulsen's, a fire destroys the one thousand widgets. Paulsen claims that title passed to Malloy at the time the contract was made and that the risk of loss passed to Malloy when the goods were marked with Malloy's name and address. a. b. c. State and explain the law regarding when title passes and risk of loss. Once you explain, apply the law to the facts and state your conclusion. When did title pass and who has the burden of the loss?Explanation / Answer
Q1(a). The Sale of Goods Contract are counted under the Article 2 of Uniform Commercial Code which is the general practices between the buyer and seller of the product. Under this Article, the car dealer Nellbell Motors and Oskern are the two merchants ,on whom the commercial law is applies.
(b). No, There is no Binding Contract based on the UCC. As Acoording to Uniform Commercial code, the Both the parties should have Make an offer and accepted the Offer by through writing, conveying via Elctronic Mail, or just by Orally informed about the acceptance of offer.
In this case, the Nell Bell Offer the product before certain date but there was no acceptance or respoonse till 15days , then first party sold the car to yhird party. As there was no acceptance of Offer between the parties.
(c). Acoording to the UCC, the binding contract is When there is a Offer and acceptance of Offer with the Assigned Consideration.
NellBell has not Breached the contactas he was not bound with any contactual capacity, since the Okern did not accepted the offer by any written agreement or conveying him.
Q2.(a).The title Passes and Risk of Loss Is come under the Article 7 of the Uniform Commercial Code.
(b). Under this Commerciacial law, the Seller bears the risk or are in possesion of the goods until the goods are in possesion of Free on Board Carrier. so, the Buyer malloy is not in possession of the goods untill it was delivered as the Doods are damaged at the F.O.B sellers plant paulson. so the Whole damaged goods bear by the Seller or Sellers Carrier Plant.
(c). The title is seeling of goods untill itis delivered or in the possession of the Free ON Board , is under the possesssion of Seller i.e. Paulson. so, the burden of Loss is bear by the PAulson itself. Because the good was damaged at the paulson dock before the Speedy Feight Pick Up the Goods and delivered it.
Secondly, The Buyer is responsible only, once the Goods are delivered at buyers place without any friction whether the payment were made or not. In this situation, Malloy do not have Burden of Loss, sice the title of goods was not passed.
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