Seller's Right to Cure

Leveraging the Seller's Right to Cure Under NY UCC

Even when a buyer rejects goods due to non-conformity, the seller may have an opportunity to correct the issue. The New York UCC provides sellers with a "right to cure" under certain conditions.

Understanding UCC §2-508: Seller's Right to Cure

1. Time Remaining in Contract:

   
   

   • If the time for performance has not yet expired, the seller can:

     
     

     • Notify the buyer of their intention to cure.
       

     • Make a conforming delivery within the contract time.

       
       

2. Reasonable Grounds for Belief:

   
   

   • If the seller had reasonable grounds to believe the non-conforming goods would be acceptable, they may:

     
     

     • Notify the buyer.

       
       

     • Have an additional reasonable time to substitute a conforming tender.

       
       

Benefits for Sellers:

• Preserve the Sale:

  Opportunity to fulfill the contract and maintain the business relationship.

  
  

• Avoid Legal Action:

  Correcting the issue can prevent breach of contract claims.

Obligations for Sellers:

• Prompt Notification:

  Must inform the buyer of the intention to cure.

• Timely Action:

  Must provide conforming goods within the contract timeframe or a reasonable period.

Considerations for Buyers:

• Good Faith Acceptance:

  Buyers should allow the seller to cure if the conditions are met.

• Communication:

  Open dialogue can lead to a satisfactory resolution for both parties.

Key Takeaways:

• Sellers have a right to correct non-conformities under specific conditions.

• Timely communication and action are essential for the right to cure.

• Understanding this provision helps both buyers and sellers manage contract performance effectively.

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Disclaimer:

This article is for informational purposes only and does not constitute legal advice. Although I am an attorney, I am not your attorney, and reading this article does not create an attorney-client relationship. For advice pertaining to your specific situation, please consult a qualified attorney licensed in your area.