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21. Which of the following statements is correct?
A fixtures company, in a signed writing, contracted with an apartment complex for the sale to the apartment complex of 50 identical sets of specified bathroom fixtures, 25 sets to be delivered on March 1, and the remaining 25 sets on April 1. The agreement did not specify the place of delivery, or the time or place of payment.
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Under Uniform Commercial Code (UCC) § 2-310, unless the contract specifies otherwise, a buyer's obligation to pay is conditioned upon the tender of the goods by the seller. Tender is effected when the seller makes conforming goods available for the buyer's disposition and gives the buyer notice sufficient to enable the buyer to take delivery. Unless the contract specifies otherwise, under UCC § 2-308, the place of delivery is the seller's place of business, and payment is due at the time and place where the buyer is to receive the goods.
B is correct. Because the fixtures company-apartment complex contract is silent with respect to the place of delivery, tender by the fixtures company does not require them to deliver the goods to the apartment complex's place of business, but only to make the goods available at the fixtures company's place of business for the apartment complex to take delivery. Further, because the contract does not specify a time of payment, payment will be due at the time the buyer receives the goods. Thus, unless the apartment company pays the fixtures company for the fixtures, the fixtures company will have no duty to tender them to the apartment complex.
A is incorrect. As explained above, when the contract lacks a term specifying otherwise, the place of delivery will be assumed to be the seller's place of business. Thus, in this question, tender does not require the fixtures company to deliver the goods to the apartment complex's place of business. The contract did not specify another location for the fixtures to be delivered, so UCC § 2-308 applies.
C is incorrect. As explained above, when a contract does not specify a time of payment, UCC § 2-310 applies which states that «payment is due at the time and place at which the buyer is to receive the goods.» Because the contract is silent on the time of payment, the apartment complex cannot make payment «within a reasonable time,» they are required to make payment when the fixtures company delivered the fixtures.
D is incorrect. The apartment complex cannot wait until receiving the entire shipment of fixtures before tendering payment. Because the contract lacked a term specifying the time of payment, the apartment complex must tender payment for the 25 sets of fixtures when they receive them.