Also known as:non-conforming tender · nonconforming tenders · non-conforming tenders · nonconforming delivery
Written by attorneys — see sources below.
A tender of goods that deviates from the contract specifications in any respect. Under the perfect tender rule the buyer may reject the whole tender, accept the whole, or accept any commercial unit and reject the rest.
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How its tested
Common Examples
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Seller Seeks Time to Cure Nonconforming Shipment
Nordic Ventures contracted to supply Norton Bank with 500 specialized security tokens programmed to a precise encryption standard. Nordic delivered tokens using an older protocol. The same day Nordic notified Norton of its intention to replace the entire lot with conforming tokens within ten days. Norton rejected the initial delivery and refused to allow the replacement.
Seller's Reasonable Belief Supports Cure Attempt
Nicholas Nunez ordered a specific model of hearing aid from a retailer. The retailer delivered a different model that performed the same functions. The retailer immediately notified Nunez of its intent to substitute the correct model and offered a price allowance. Nunez refused the cure and demanded a refund.
The plaintiff, a franchised representative of Acousticon, a manufacturer of hearing aids, entered into a contract with the defendant on January 15, 1966. The defendant signed a contract to purchase a Model A-660 Acousticon hearing aid from the plaintiff after being tested at a hearing aid clinic and informed that this model was best suited for his condition. An ear mold was fitted to the defendant and the plaintiff ordered Model A-660 from Acousticon.
On February 2, 1966, the defendant went to the plaintiff’s office in response to a call and was informed that Model A-660 had been modified and improved and was now called Model A-665, which had been delivered for his use. The hearing aid was fitted to the defendant, who complained about the noise but was assured by the plaintiff that he would get used to it. The defendant denies that he understood this was a different model number.
The defendant used the hearing aid for a total of 15 hours over the next few days. He returned to the hearing clinic, where he was informed that the hearing aid was not the model he had been advised to buy. On February 8, 1966, he returned to the plaintiff’s office complaining that the hearing aid gave him a headache and was not the model he had ordered. He returned the hearing aid and received a receipt, at which time the plaintiff offered to get Model A-660 for the defendant, though the defendant neither consented to nor refused the offer and no mention was made by either party about canceling the contract.
The plaintiff immediately informed Acousticon of the defendant’s complaint. By letter dated February 14, 1966, Acousticon wrote directly to the defendant explaining that Model A-665 was an improved version of Model A-660 and offering to replace the delivered model or obtain Model A-660. After receiving this letter the defendant decided that he did not want any hearing aid from the plaintiff and refused to accept the tender of a replacement. The plaintiff is suing for the balance due on the contract. Although the defendant made an $80 down payment, the court did not consider the defendant’s counterclaim for repayment of the down payment. The counterclaim was raised only when the case was ready to go to trial and was not shown in the pleadings.
When may a seller cure a nonconforming tender after the contract time has expired?
The seller may cure if it had reasonable grounds to believe the nonconforming tender would be acceptable with or without a money allowance, seasonably notifies the buyer, and substitutes a conforming tender within a further reasonable time.
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Does the perfect tender rule allow rejection of an entire shipment when only some units are nonconforming?
Yes. If the tender fails in any respect to conform to the contract the buyer may reject the whole, accept the whole, or accept any commercial unit and reject the rest.
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What constitutes an effective rejection of nonconforming goods?
Rejection must occur within a reasonable time after delivery and the buyer must seasonably notify the seller. Delay beyond a reasonable inspection period renders the rejection ineffective.
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May a buyer reject goods that are clinically equivalent but fail an express packaging specification?
Yes. The perfect tender rule permits rejection whenever the tender fails in any respect to conform, even if the goods retain therapeutic value.
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284 N.Y.S.2d 222
…Commercial Code which has added a new dimension to the concept of strict performance. This section permits a seller to cure a nonconforming delivery under certain circumstances. Subdivision (1) of this section enacts into statutory law what had been New York case law. This permits a seller to cure a nonconforming delivery before the…