Following a conversation with Angel’s executive Cut Above’s understanding from the executive was that the crane would not be completed until January 31, 2011, at which time it was to be shipped via truck FOB the construction site. The crane arrived on February 4, 2011, and Cut Above accepted delivery of the crane but withheld from its final payment to Angel its cost of renting another crane, as well as anticipated delay costs on the project. Cut Above withheld $5,000. 00 for the cost of the crane rental as well as $5,000. 00 for the delay costs. ISSUE: Whether delay of the crane delivery entitled Cut Above to withhold any money from payment.
Whether delay of the crane delivery entitled Cut Above to damages. LAW: UCC § 2–607. Effect of Acceptance; Notice of Breach; Burden of Establishing Breach After Acceptance; Notice of Claim or Litigation to Person Answerable Over. UCC § 2–717. Deduction of Damages From the Price. UCC § 2-712. “Cover”; Buyer’s Procurement of Substitute Goods. UCC § 2-607. Effect of Acceptance; Notice of Breach; Burden of Establishing Breach After Acceptance; Notice of Claim or Litigation to Person Answerable Over. RATIONALE: The court holds in favor of the defendant, Cut Above concerning damages resulting from the plaintiffs, Angels, failure to perform.
The buyer may withhold those damages from any payment of purchase price remaining due (U. C. C. 2-717), but will be denied damages absent timely notice of breach to the seller (U. C. C. 2-607(3)(a)).
The Essay on Duty Of Care Contract Law Breach
A contract is an agreement between two parties. Contract law is the main area which building contracts are administered. The legal aspect of a building contract is contained in written conditions either of a general or special nature. The two parties agree to work within the conditions set down and are obliged to adhere to them or suffer penalties which are either stated within the contract or ...
Cut Above made timely inquires into Angels delivery date of the crane as demonstrated by the new completion and delivery date. The reasonableness of the efforts of the injured party to cover in the event of breach of contract must be judged in the light of the situation confronting him at the time of the loss and not by the judgment of hindsight.
A buyer is entitled to cover through any reasonable purchase (rental of a replacement crane).
The applicable standard of reasonableness is measured by reasonableness in fact, due diligence and in good faith. Under the facts of this case Cut Above acted reasonably and in good faith and is entitled to recover $10,000, the difference between contract price and actual cover price. Angel is subsequently not entitled to the remainder of the contract price.
