Also known as: further reasonable times
Written by attorneys · grounded in primary & secondary sources — see below
An additional period after the contract time for performance has expired during which a seller who seasonably notifies the buyer may substitute a conforming tender following rejection of a nonconforming delivery that the seller had reasonable grounds to believe would be acceptable.
Frostline Textiles shipped 600-thread-count sheets instead of the 800-thread-count sheets ordered by Harborview Boutique Hotel and offered a discount based on prior dealings. Harborview rejected the shipment in writing. Frostline Textiles immediately notified Harborview that it would deliver conforming sheets before the hotel's peak season. The court allowed Frostline Textiles the further reasonable time to make the substitute tender.
SteelCo shipped steel beams with slightly different bolt hole spacing to BuilderCorp and included a price reduction based on past projects where BuilderCorp had accepted the variation. BuilderCorp rejected the beams. SteelCo promptly notified BuilderCorp that it would deliver fully conforming beams. BuilderCorp remained obligated to accept the substitute tender made within the further reasonable time.
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A seller obtains a further reasonable time after the buyer rejects a nonconforming tender if the seller had reasonable grounds to believe the tender would be acceptable with or without a money allowance and seasonably notifies the buyer of intent to cure.
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Subsection (1) permits cure only within the remaining original contract time upon seasonable notice. Subsection (2) grants an additional period after the contract time has expired when the seller's belief in acceptability was reasonable.
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Courts assess the nature of the goods, the complexity of the cure, the buyer's disclosed needs, any urgency in the transaction, and whether the extension would materially prejudice the buyer.
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Yes. Evidence that the buyer previously accepted similar nonconforming goods with a price adjustment supports the seller's objective belief that the tender would be acceptable with or without allowance.
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