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Qualcomm, Inc. sends an invoice to BIC PENS, Inc ordering 150 blue ink pens. BIC PENS...

Qualcomm, Inc. sends an invoice to BIC PENS, Inc ordering 150 blue ink pens. BIC PENS Inc., ships 150 mechanical pencils, without any comment or discussion. Discuss the contract/UCC points raised under these facts

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Answer #1

The buyer's order stipulated blue ink pens. The seller supplied mechanical pencils. Therefore, there is a breach of contract, as the seller has failed to perform the contract as per specifications.

In a contract for sale of goods, the UCC requires perfect tender by the seller, which means delivery of goods to the buyer that precisely meet the terms of the contract.

The options before the buyer are as follows:

  • Either accept the shipment, and treat the contract as discharged by agreement. Now the buyer is bound by the contract.or,
  • Accept the shipment, treat the contract as discharged by breach, and file a lawsuit for damages, or
  • Reject the shipment, treat the contract as discharged by breach, file a lawsuit for damages.
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