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Contracts • Performance Under UCC
K#118
Legal Definition
Generally, once a buyer accepts goods, their power to reject them is terminated. However, a buyer may revoke their acceptance if the goods have a defect that substantially impairs their value and: (1) they are accepted on the reasonable belief the defect would be cured and it has not been; or (2) they are accepted because of the difficulty of discovering defects or because of the seller's assurance that the goods conformed.
Note that revocation of acceptance must occur: (1) within a reasonable time after the buyer discovers or should have discovered the defects; and (2) before any substantial change in the goods occurs that is not caused by the defect.
Note that revocation of acceptance must occur: (1) within a reasonable time after the buyer discovers or should have discovered the defects; and (2) before any substantial change in the goods occurs that is not caused by the defect.
Plain English Explanation
You may have noticed in other cards that a common result of a buyer accepting goods is that he may not later reject them. This is because acceptance is sacred under the law. The law wants people to not rush into acceptance and know that when they do finally accept, it's usually final.
With that being said, a court may allow a buyer to revoke their acceptance if the defect in the goods drastically impairs the value of the goods and either (1) the goods were accepted only because the buyer reasonably believed that the seller would fix them, but then the seller never does; or (2) the goods were accepted because the defect was either difficult to discover, or the seller assured the buyer that there was nothing wrong with the goods.
With that being said, a court may allow a buyer to revoke their acceptance if the defect in the goods drastically impairs the value of the goods and either (1) the goods were accepted only because the buyer reasonably believed that the seller would fix them, but then the seller never does; or (2) the goods were accepted because the defect was either difficult to discover, or the seller assured the buyer that there was nothing wrong with the goods.
Hypothetical
Hypo 1: Sam buys 100 blue widgets from Bob. Bob delivers 75 blue widgets and 25 red widgets. Sam tells Bob he really needs 100 blue widgets. Bob says, "Don't worry about it, just keep these and I'll send you 25 blue ones ASAP." Sam says "Okay." and accepts the delivery. Days pass without hearing from Bob. When Sam contacts Bob, Bob says, "You already accepted the delivery. You're out of luck." Result: Sam can revoke his acceptance because he only accepted due to a good faith belief that Bob would cure the problem with the goods by sending an additional 25 correctly colored widgets.
Visual Aids
Related Concepts
What are a buyer's rights to reject goods in an installment contract?
What does the "ability to cure" mean?
What factors limit a buyer's ability to reject goods?
What happens if a seller wishes to cure beyond the time obligated for performance?
What happens if a seller wishes to cure within the time obligated for performance?
What is the buyer's right of inspection?
What is the effect of a buyer accepting goods on his ability to reject them?
What is the perfect tender rule, and what is the consequence of less than perfect tender?
When is the price due in carrier cases, shipment contracts, and destination contracts?
When is the price due in non-carrier cases?
When may the seller demand payment in an installment contract?
