Under the UCC's performance standards, what is the rule for performance?

Under the UCC's performance standards, what is the rule for performance?

• A. Substantial performance
• B. Implied warranty of fitness for particular purpose
• C. Perfect tender rule
• D. Accord and satisfaction

Answer: (C)

Under the sale of goods rules, performance is strict: the goods must conform to the contract in every respect at the time of delivery. This is known as the perfect tender rule. If something about the goods or the delivery doesn’t match the contract, the buyer generally has the right to reject, unless the seller can cure the defect within the allowed time or the contract permits an installment approach where only the problematic installment may be rejected. Helpful context: the perfect tender rule stands in contrast to common-law notions of substantial performance found in service contracts, where minor deviations can still satisfy the obligation. The UCC also recognizes implied warranties, like merchantability or fitness for a particular purpose, but those govern quality and suitability, not the overall standard of performance for delivery. Accord and satisfaction is about settling disputes over amounts owed, not about whether the performance met the contract terms.

Under the sale of goods rules, performance is strict: the goods must conform to the contract in every respect at the time of delivery. This is known as the perfect tender rule. If something about the goods or the delivery doesn’t match the contract, the buyer generally has the right to reject, unless the seller can cure the defect within the allowed time or the contract permits an installment approach where only the problematic installment may be rejected.

Helpful context: the perfect tender rule stands in contrast to common-law notions of substantial performance found in service contracts, where minor deviations can still satisfy the obligation. The UCC also recognizes implied warranties, like merchantability or fitness for a particular purpose, but those govern quality and suitability, not the overall standard of performance for delivery. Accord and satisfaction is about settling disputes over amounts owed, not about whether the performance met the contract terms.