If the buyer rejects the whole quantity of goods due to short delivery...
The correct answer is: subsisting
When the buyer rejects the whole quantity of goods due to short delivery or excess delivery, the contract is treated as subsisting. This means that the contract still exists and has not been terminated or cancelled. Here are the reasons why:
1. Continued obligations: The contract remains valid, and both parties still have obligations to fulfill. The buyer still needs the goods, and the seller still needs to provide them in the correct quantity as per the contract.
2. Opportunity to rectify the issue: Since the contract is subsisting, the seller has the opportunity to correct the mistake by delivering the correct quantity of goods as agreed in the contract. This allows the parties to continue with their business relationship.
3. Legal remedies: If the seller fails to rectify the issue or if the buyer still refuses to accept the goods after the problem has been resolved, the contract remains subsisting, and legal remedies may be sought by either party. This can include seeking damages for breach of contract or specific performance, where the seller is legally compelled to deliver the correct quantity of goods.
4. Protection of both parties' interests: Treating the contract as subsisting ensures that both parties' interests are protected. The buyer is entitled to receive the correct quantity of goods, and the seller gets the chance to rectify their mistake and deliver what was initially agreed upon.
In summary, when the buyer rejects the whole quantity of goods due to short delivery or excess delivery, the contract remains subsisting. This allows the seller to rectify the issue and provides both parties with the opportunity to fulfill their contractual obligations. If the issue cannot be resolved through mutual agreement, legal remedies may be sought to protect both parties' interests.
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If the buyer rejects the whole quantity of goods due to short delivery...
Explanation:
When a buyer rejects the whole quantity of goods due to short delivery or excess delivery, it means that the contract still exists between the buyer and the seller. The rejection of the goods does not necessarily mean the termination of the contract. The contract can be treated as subsisting, which means that it is still in effect and the parties are still bound by its terms and conditions.
Reasons for short delivery or excess delivery:
Short delivery or excess delivery can happen due to various reasons such as miscommunication, error in calculation, or miscalculation of inventory. In such cases, the buyer can reject the whole quantity of goods.
Effects of short delivery or excess delivery:
When the buyer rejects the whole quantity of goods due to short delivery or excess delivery, the seller may be liable for damages, depending on the terms of the contract. The buyer can claim damages for any losses incurred due to the short delivery or excess delivery.
Conclusion:
In conclusion, when the buyer rejects the whole quantity of goods due to short delivery or excess delivery, the contract is treated as subsisting. The rejection of the goods does not necessarily mean the termination of the contract. The parties are still bound by its terms and conditions, and the buyer can claim damages for any losses incurred due to the short delivery or excess delivery.
If the buyer rejects the whole quantity of goods due to short delivery...
Subsisting means to exist. If you have ordered 10 units and instead you get 6 units, you will not cancel the entire order. Either you retain the 6 units or reject and ask for delivery of 10 units. Similarly in the above case, contract is not canceled, but still exists and needs to be performed again.