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Home » US Law » 2022 Maryland Statutes » Commercial Law » Title 2 - Sales » Subtitle 6 - Breach, Repudiation and Excuse

Section 2-601 – Buyer’s Rights on Improper Delivery

    Subject to the provisions of this title on breach in installment contracts (§ 2-612) and unless otherwise agreed under the sections on contractual limitations of remedy (§§ 2-718 and 2-719), if the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may         (a)    Reject the whole; or         (b)    Accept […]

Section 2-602 – Manner and Effect of Rightful Rejection

    (1)    Rejection of goods must be within a reasonable time after their delivery or tender. It is ineffective unless the buyer seasonably notifies the seller.     (2)    Subject to the provisions of the two following sections on rejected goods (§§ 2-603 and 2-604).         (a)    After rejection any exercise of ownership by the buyer with respect to any commercial unit […]

Section 2-603 – Merchant Buyer’s Duties as to Rightfully Rejected Goods

    (1)    Subject to any security interest in the buyer (subsection (3) of § 2-711), when the seller has no agent or place of business at the market of rejection a merchant buyer is under a duty after rejection of goods in his possession or control to follow any reasonable instructions received from the seller with respect […]

Section 2-604 – Buyer’s Options as to Salvage of Rightfully Rejected Goods

    Subject to the provisions of the immediately preceding section on perishables if the seller gives no instructions within a reasonable time after notification of rejection the buyer may store the rejected goods for the seller’s account or reship them to him or resell them for the seller’s account with reimbursement as provided in the preceding […]

Section 2-605 – Waiver of Buyer’s Objections by Failure to Particularize

    (1)    The buyer’s failure to state in connection with rejection a particular defect which is ascertainable by reasonable inspection precludes him from relying on the unstated defect to justify rejection or to establish breach         (a)    Where the seller could have cured it if stated seasonably; or         (b)    Between merchants when the seller has after rejection made a request […]

Section 2-606 – What Constitutes Acceptance of Goods

    (1)    Acceptance of goods occurs when the buyer         (a)    After a reasonable opportunity to inspect the goods signifies to the seller that the goods are conforming or that he will take or retain them in spite of their nonconformity; or         (b)    Fails to make an effective rejection (subsection (1) of § 2-602), but such acceptance does not occur […]

Section 2-607 – Effect of Acceptance; Notice of Breach; Burden of Establishing Breach After Acceptance; Notice of Claim or Litigation to Person Answerable Over

    (1)    The buyer must pay at the contract rate for any goods accepted.     (2)    Acceptance of goods by the buyer precludes rejection of the goods accepted and if made with knowledge of a nonconformity cannot be revoked because of it unless the acceptance was on the reasonable assumption that the nonconformity would be seasonably cured but acceptance […]

Section 2-608 – Revocation of Acceptance in Whole or in Part

    (1)    The buyer may revoke his acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to him if he has accepted it         (a)    On the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or         (b)    Without discovery of such nonconformity if his acceptance was reasonably induced either […]

Section 2-609 – Right to Adequate Assurance of Performance

    (1)    A contract for sale imposes an obligation on each party that the other’s expectation of receiving due performance will not be impaired. When reasonable grounds for insecurity arise with respect to the performance of either party the other may in writing demand adequate assurance of due performance and until he receives such assurance may if […]

Section 2-610 – Anticipatory Repudiation

    When either party repudiates the contract with respect to a performance not yet due the loss of which will substantially impair the value of the contract to the other, the aggrieved party may         (a)    For a commercially reasonable time await performance by the repudiating party; or         (b)    Resort to any remedy for breach (§ 2-703 or § […]

Section 2-611 – Retraction of Anticipatory Repudiation

    (1)    Until the repudiating party’s next performance is due he can retract his repudiation unless the aggrieved party has since the repudiation cancelled or materially changed his position or otherwise indicated that he considers the repudiation final.     (2)    Retraction may be by any method which clearly indicates to the aggrieved party that the repudiating party intends to […]

Section 2-612 – “Installment Contract”; Breach

    (1)    An “installment contract” is one which requires or authorizes the delivery of goods in separate lots to be separately accepted, even though the contract contains a clause “each delivery is a separate contract” or its equivalent.     (2)    The buyer may reject any installment which is nonconforming if the nonconformity substantially impairs the value of that installment […]

Section 2-613 – Casualty to Identified Goods

    Where the contract requires for its performance goods identified when the contract is made and the goods suffer casualty without fault of either party before the risk of loss passes to the buyer, or in a proper case under a “no arrival, no sale” term (§ 2-324) then     (a)    If the loss is total the contract […]

Section 2-614 – Substituted Performance

    (1)    Where without fault of either party the agreed berthing, loading, or unloading facilities fail or an agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable but a commercially reasonable substitute is available, such substitute performance must be tendered and accepted.     (2)    If the agreed means or manner of payment […]

Section 2-615 – Excuse by Failure of Presupposed Conditions

    Except so far as a seller may have assumed a greater obligation and subject to the preceding section on substituted performance:         (a)    Delay in delivery or nondelivery in whole or in part by a seller who complies with paragraphs (b) and (c) is not a breach of his duty under a contract for sale if performance […]

Section 2-616 – Procedure on Notice Claiming Excuse

    (1)    Where the buyer receives notification of a material or indefinite delay or an allocation justified under the preceding section he may by written notification to the seller as to any delivery concerned, and where the prospective deficiency substantially impairs the value of the whole contract under the provisions of this title relating to breach of […]