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Non-Conformity and Impairment of Value

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If the goods or tender of delivery fail to conform to the contract, the buyer can reject the goods if the non-conformity rises to the level of substantial impairment of value. Give 2 specific examples of situations which would meet this criteria.

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This posting gives you a step-by-step explanation of Impairment of Value. The response also contains the sources used.

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One situation where the buyer can reject the good if the non-conformity rises to the level of substantial impairment of value is as follows. The contract is for the supply of 100 tons of long grain rice on or before 7th December 2011. Instead the supplier delivers 100 tons of short grain rice. This is an example of non-conformity where the contract can be rescinded. Substantial impairment is defined by [UCC A2-612] ...

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