¶ … decision was in favor of the plaintiff, McCalif Grower Supplies, Inc. (McCalif). The court ordered the defendant, Wilbur Reed (Reed) to pay McCalif's invoice for the poinsettas. However, Reed appealed, and won the repeal. The court ordered a reverse and remand for damages made in the initial counterclaim. The appellate decision was made based on consequential damages due to seller's breach related to perfect tender requiring that, "the seller deliver goods in conformity with the terms of the contract," (text p. 513). The perfect tender rule protects the buyer, which is why the appellate court made its decision to reverse and remand. According to the perfect tender rule, "if goods or tender fail in any respect to conform to the contract, the buyer/lessee has the right to accept the goods, reject the entire shipment, or accept part and reject part," (text p. 513).
In this case, the buyer, Reed, sued for non-delivery or repudiation (Mccalif Grower Supplies Inc. v. Reed, 1995). The court focused on the buyer's right to non-delivery and states, "The record demonstrates that Reed accepted a portion of the commercial units of poinsettias and rejected the rest. The record further demonstrates, without contradiction, that Reed notified McCalif within 24 hours," (Mccalif Grower Supplies Inc. v. Reed).
Moreover, the courts point to issues regarding warranty of the item. "Warranty when thing cannot be examined by buyer. One who sells or agrees to sell merchandise inaccessible to the examination of the buyer thereby warrants that it is sound and merchantable," (Mccalif Grower Supplies Inc. v. Reed). The botched delivery was deemed to be incidental damages. Therefore, it did not matter that Reed acquired compensation from...
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