Also known as: rightful rejection · rightfully reject · rightfully rejects · proper rejection
Written by attorneys · grounded in primary & secondary sources — see below
An action by which a buyer properly refuses nonconforming goods tendered by a seller. The rejection discharges the buyer from any continuing duty to accept or pay for the goods and preserves access to remedies for the seller's breach.
Riverstone Manufacturing received a shipment of steel beams that failed to meet thickness specifications. It inspected the beams the same day, sent timely notice of rejection to the seller, and stored the beams in its receiving bay without using them. When the seller later demanded payment for storage costs, Riverstone Manufacturing owed nothing because the rejection left it free of further obligations regarding the beams.
Riley Rivera paid in advance for custom machinery that arrived with the wrong motor. She inspected the equipment, rejected it the next day with detailed notice, and demanded return of her payment. Because the rejection was rightful, Riley Rivera could cancel the contract and recover the price already paid.
Select any source to read its text and confirm it supports the definition.
Redwood Bank received nonconforming computer servers and rejected them after inspection. It retained possession of the servers while awaiting the seller's instructions. Redwood Bank could hold the servers under a security interest for its payments and expenses and resell them if the seller failed to retrieve them.
Ravi Reddy rejected a load of lumber that arrived warped and undersized. He incurred expenses for inspection, temporary storage, and return shipping. Those costs qualified as recoverable incidental damages arising from the seller's breach.
Roger Ramirez received a shipment of grain that failed quality specifications. He inspected and rightfully rejected the goods with timely notice, then held them for the seller's disposition while incurring inspection and storage costs. The rejection discharged further obligations and allowed recovery of incidental damages.
The buyer has no further obligations with regard to the goods. The rejection discharges any duty to accept or pay for them while leaving the buyer free to pursue remedies for the seller's breach.
Supporting sources
Yes. Upon rightful rejection the buyer may cancel the contract and recover so much of the price as has been paid, in addition to other available remedies.
Supporting sources
Yes. The buyer obtains a security interest in the goods for any payments made and reasonable expenses incurred in inspection, receipt, transportation, care, and custody, and may resell them in the same manner as an aggrieved seller.
Supporting sources
The buyer may recover incidental damages, including expenses reasonably incurred in inspection, receipt, transportation, and care and custody of the rejected goods, plus any commercially reasonable charges connected with cover or other expenses incident to the breach.
Supporting sources
…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…