Also known as: revokes acceptance · revoked acceptance · revoking acceptance · revocation of acceptance
Written by attorneys · grounded in primary & secondary sources — see below
A buyer's remedy that permits revocation of an earlier acceptance of nonconforming goods when the nonconformity substantially impairs the value of the goods to the buyer. Revocation is available if the buyer accepted on the reasonable assumption that the seller would seasonably cure the nonconformity or if the buyer accepted without discovering the nonconformity because of its difficulty of discovery or the seller's assurances. The buyer must notify the seller within a reasonable time after discovering the ground for revocation and before any substantial change in the goods not caused by their own defects.
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Riley Rivera ordered specialized mining equipment from Rocky Mountain Mining. Upon delivery Riley discovered missing components but accepted after the seller promised prompt replacement parts. When the parts never arrived Riley notified Rocky Mountain Mining of revocation and returned the equipment. Because the revocation was justifiable Riley recovered the price paid plus incidental damages under the applicable rule.
Renee Rogers purchased commercial ovens from Radiance Media that heated unevenly. Renee accepted only after the seller promised a software update within two weeks. When the update never arrived Renee justifiably revoked acceptance and covered by purchasing substitute ovens. The revocation entitled Renee to recover the price paid plus cover damages.
Rina Rahman bought a fleet of GPS units from Ridgeway Partners that lacked promised real-time features. Rina accepted on the seller's assurance of upgrades that never came. After justifiable revocation Rina retained the units and resold them to recoup payments made plus inspection and storage expenses under the security-interest rule.
Ralph Richardson accepted delivery of designer jackets in State A that had inferior linings. After customer returns revealed the defect Ralph justifiably revoked acceptance. Damages were measured using market price at the place of arrival rather than the place of tender because revocation occurred after the goods had arrived.
Roberto Reyes contracted to buy corn seed from Redwood Bank that the seller repudiated before delivery. Roberto accepted substitute seed that proved nonconforming and later revoked acceptance. The revocation allowed Roberto to pursue damages measured from the time he learned of the breach rather than the original contract date.
A buyer who accepts goods with knowledge of a nonconformity may still revoke if the acceptance rested on the reasonable assumption that the seller would seasonably cure and that cure does not occur. The buyer must also show substantial impairment and give timely notice before any substantial change in the goods not caused by their own defects.
Supporting sources
…concedes that if “rescission” was an inappropriate remedy under the UCC, then the trial court should have permitted him to revoke acceptance under SDCL 57A-2-605. Revocation is a permissible substitute for rescission under the UCC in some jurisdictions. Henderson v. Chrysler Corp. , 191 Mich.App. 337, 477 N.W.2d 505, appeal…
…it: “(1) on the reasonable assumption that its non-conformity would be cured and it has not been seasonably cured; “(B)
…portion of 2-711: "(1) Where the seller fails to make delivery or repudiates or the buyer rightfully rejects or justifiably revokes acceptance
…Defendants rejected or revoked
The buyer must show that the nonconformity substantially impairs the value of the goods, that acceptance occurred without discovery of the nonconformity, and that the acceptance was reasonably induced by the seller's assurances or the difficulty of discovering the defect before acceptance. Timely notice to the seller is also required.
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Yes. Upon effective revocation the buyer obtains the same rights and duties with respect to the goods as if they had been rejected initially, including the right to recover payments made and to pursue damages or cover.
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Continued use after the promised cure period expires and after the seller stops responding indicates that any assumption of seasonable cure has become unreasonable, making revocation unavailable. Use during the period when cure was reasonably expected does not waive the right.
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