A Seller's Right To A Payment For Goods And A Buyers Right To Revoke Acceptance

What is a seller's right to a payment? What are a buyer's rights to revoke acceptance?

When two parties have a contract for the sale of goods and the buyer accepts the goods then the buyer must pay the seller for these goods. When must a buyer pay a seller? A seller's right to a payment is immediate.

What laws regulate the sale of goods? What does it mean when a buyer has accepted the goods? What happens if they don't pay?

The sales of goods are regulated and governed by the Uniform Commercial Code (UCC) laws. UCC stipulates that a buyer must pay for the goods if they have accepted them. However, a buyer can reasonably revoke his acceptance.

  • A buyer can revoke their acceptance of the goods if they inspect the product and find a defect. They cannot however, revoke their acceptance if they have already begun to display and sell the product. In order to revoke the acceptance, a buyer must do it in a timely matter and have grounds for revoking the goods.
  • When the buyer displays and offers the products for sale, they have accepted them and must pay the seller for them. Additionally, if a buyer makes any changes to the goods, they have accepted them.
  • If a buyer does revoke goods in a timely manner and with acceptable grounds, then they make the goods available to be picked up by the seller.

What if, however, a buyer sells a few goods, and then discovers a major defect in the product?

Since the buyer has already sold units, they cannot revoke their acceptance for a refund from the seller, but they do have legal recourse. What a buyer can do is sue the seller of the goods for breaching the warranty. Before suing for breach of warranty, though, a buyer must give a seller a timely notice informing the seller that the discovered a breach such as a defect. This is to give the seller the opportunity to mitigate damages. If the buyer provides notice and the seller does not attempt to mitigate damages, negotiate or litigate, then the buyer may pursue further legal action.


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