Also known as: rightfully reject · rightfully rejected · rightfully rejecting · valid rejection · proper rejection
Written by attorneys · grounded in primary & secondary sources — see below
A buyer's proper refusal to accept nonconforming goods under a sales contract. The refusal must occur within a reasonable time after delivery and be accompanied by seasonable notice to the seller. Once effected, the buyer incurs no further contractual obligations regarding the goods and gains access to specified remedies including cancellation and recovery of the price paid.
Raymond Ramos ordered custom shelving units from Redwood Bank for his retail store. Upon delivery he inspected the units and found them missing the specified brackets. Ramos promptly emailed notice of rejection to the seller. Because the rejection was rightful, Ramos had no further obligations to store or return the units.
Renata Russo paid in full for a shipment of fabric from Radiance Media. The fabric arrived with incorrect dye lots. Russo seasonably notified the seller of her rejection and canceled the contract. She recovered the full price paid plus the right to pursue cover damages.
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Rowan Russell received a pallet of electronic components from Redline Automotive. After inspection revealed mismatched specifications, Russell rejected the goods and incurred expenses for testing and temporary storage. Those inspection and custody costs qualified as recoverable incidental damages.
Rosa Ruiz contracted to buy replacement engines from Radiant Technologies. After the seller repudiated, Ruiz rejected the tendered units and purchased substitute engines at a higher market price. She recovered the difference between the contract price and the cover price as damages.
The buyer has no further obligations with regard to the goods. The rejection discharges the buyer from any duty to accept or pay the contract price, although the buyer must still hold the goods with reasonable care for a reasonable time if physical possession was taken.
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The buyer may cancel the contract and recover any price already paid. The buyer may also cover by purchasing substitute goods or recover market-price damages, plus incidental damages such as inspection and storage expenses.
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No. The buyer need only hold the goods with reasonable care at the seller's disposition for a sufficient time. Immediate return is not required, and the buyer may assert a security interest to the extent of payments and expenses incurred.
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Rightful rejection occurs before acceptance and prevents the buyer from becoming obligated under the contract. Revocation of acceptance occurs after acceptance but restores the buyer to the same position as if rejection had occurred, provided the revocation is timely and before substantial change in the goods.
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…the seller’s breach include expenses reasonably incurred in inspection, receipt, transportation and care and custody of goods rightfully rejected, any commercially reasonable charges, expenses or commissions in connection with effecting cover and any other reasonable expense incident to the delay or other breach. Towing back to…