Asked by Angel Medrano on Apr 28, 2024
Verified
Burgers Inc. contracts to buy five hundred head of cattle from Cattle Ranch. Before the seller delivers, an outbreak of disease causes a quarantine of the ranch. In this circumstance, the perfect tender rule
A) applies to both parties.
B) no longer applies.
C) applies only to the buyer.
D) applies only to the seller.
Perfect Tender Rule
a legal principle that requires sellers to deliver goods to buyers exactly as specified in their contract, without any deviations.
Quarantine
The restriction of movement of people or goods, often used to prevent the spread of contagious diseases.
Outbreak
The sudden occurrence of a disease or an increase in the number of cases among a population.
- Understand the principle of the perfect tender rule within lease and sales agreements.
Verified Answer
KR
Kevin ReynaMay 01, 2024
Final Answer :
B
Explanation :
The perfect tender rule no longer applies because an unforeseen event (the outbreak of disease causing a quarantine) has made it impossible for the seller to perform as originally agreed. This rule typically requires the seller to deliver goods that conform exactly to the terms of the contract, but exceptions are made for circumstances beyond the seller's control.
Learning Objectives
- Understand the principle of the perfect tender rule within lease and sales agreements.
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