As a general rule, the seller can initiate the following remedies: withholding the subsequent delivery, stopping delivery, identifying the goods delivered to him, reselling the goods, recovering the goods or recovering the price or terminating the contract. In addition, if the buyer is found to be insolvent, the seller may, within certain delays, refuse to deliver the rest of the goods or recover the goods already delivered. In 1961, Dorothy and John Wilson purchased a painting by DenHammer Galleries entitled Woman Standing. It cost $11,000 (about $78,000 in 2010) and came with this promise: “The authenticity of this image is guaranteed.” In 1984, an expert considered the painting a forgery. The District Court found that the Wilsons` action for breach of the warranty, filed in February 1987 – 21 years after the purchase – was prescribed by the UCC`s statute of limitations by the four-year statute of limitations. However, the Wilsons argued that the code exception to the four-year rule applied: uniform commercial code, section 2-725 (2). “A breach of the warranty occurs when an offer of delivery is made, unless a guarantee explicitly applies to the future delivery and the discovery must wait until the time of that service, which gives rise to the act when the infringement is discovered or should have been found.” 2. In accordance with point b), if the identified goods for which they were agreed are located in a location other than the seller`s place of duty or place of residence, the parties have provided that place as a place of delivery. This paragraph also applies (unless circumstances indicate that the delivery is provided for by documents) for a large portion of the property in possession of a lease. However, in such a case, the seller has an additional obligation to obtain recognition by the lease of the buyer`s property right.
Speedi Lubrication Centers Inc. and Atlas Match Corp. entered into a contract that provided Speedi to purchase 400,000 atlas advertising matchbooks that were to be paid within 30 days of delivery of each shipment. The orders for these matches required works of art, commissions from artists and printing plates. Atlas sent 22 match cases to Speedi with a bill with a debt of $2,100. Nearly ninety days later, Speedi sent Atlas a cheque for US$1,000, received the same day Atlas Speedi sent a letter declaring Speedi a substantial breach of contract. A second cheque for US$1,100 was later received; it bounced back, but was then replaced by a cash check. The contract provided that an advance payment constituted an infringement and included these provisions relating to the liquidation of damages: 1. Paragraphs (a) and (b) provide for these non-commercial sales and for occasional commercial sales for which no place or means of delivery was agreed by the parties. If delivery by the carrier is “prescribed or authorized by law,” the seller`s obligations when the goods are delivered are not subject to this section, but to section 2-504.