High School

Why does the perfect tender rule usually apply only to contracts for the sale of goods under Article 2 of the Uniform Commercial Code and not to all contracts?

Answer :

The perfect tender rule applies to sales contracts under the Uniform Commercial Code for goods, ensuring exact conformity of goods specified in the contract, with legal consequences for any deviations.

The perfect tender rule typically applies only to contracts for the sale of goods under Article 2 of the Uniform Commercial Code due to the nature of transactions and the implications of breach in such contracts.

For example, under the perfect tender rule, buyers have the right to demand exact conformity of goods as specified in the contract, and any deviation can be considered a breach, leading to potential legal consequences.

Contrastingly, in contracts outside the realm of sales of goods, such as service contracts or real estate transactions, performance standards and expectations may vary, making the strict application of the perfect tender rule less feasible.