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Glossary/Perfect tender rule

What is Perfect tender rule?

In short

Under the perfect tender rule, a buyer may reject goods that fail in any respect to conform to the contract. The seller may have a right to cure the defect if time for performance remains.

Key takeaways

  • A buyer may reject all the goods, accept all, or accept some commercial units and reject the rest.
  • In installment contracts, a delivery can be rejected only if the defect substantially impairs its value.
  • Rejection must be made within a reasonable time and the seller notified.

Where it's tested

REG: Business Law: Contracts — study notes, a five-minute revision sheet and practice questions.

Practise: 3 questions

Question 1 of 3 · 0 answered

On June 1, a merchant seller mails an offer to sell goods. On June 3, the seller mails a revocation. On June 4, the buyer mails an acceptance. On June 5, the buyer receives the revocation. Is there a contract?

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