
1. Tender of performance means that each party to a contract must show that he or she is ready to
perform as promised under the terms of the original agreement. Tender of performance is necessary
2. The seller is obligated to turn over the goods to the buyer, and the buyer is obligated to accept
and to pay for them, each in accordance with the terms of the contract. In addition, all parties must
3. Anticipatory repudiation occurs when one of the parties announces that he or she is not going to
perform as promised before the performance is due. (e.g., “Hey, you know that delivery that we
promised for next week? Well, forget it!”) This statement permits the other party to treat that
4. When a buyer breaches a contract for sale, the seller may (1) withhold delivery of any goods not
yet delivered; (2) stop any goods that are in transit if the buyer is insolvent or stop delivery of a
carload, truckload, planeload, or larger shipments of express or freight when the buyer repudiates or
fails to make a payment that is due before delivery or otherwise breaches the contract; (3) resell the
goods or the undelivered balance of them—in the case of unfinished manufactured goods, a seller may
either complete the manufacture and resell the finished goods or cease manufacture and resell the
unfinished goods for scrap or salvage value; (4) retain the merchandise and sue the buyer for either the
difference between the contract price and the market price at the time the buyer breached the agreement
or the profit that the seller would have made had the contract been performed; (5) sue the buyer for the