Quarry Equipment Corporation and Rock & Gravel Inc. Lease Agreement
Understanding the Perfect Tender Rule in Leasing Agreements
Quarry Equipment Corporation and Rock & Gravel Inc. have entered into a lease agreement for three bulldozers. This agreement entails that Quarry Equipment Corporation must deliver the bulldozers to Rock & Gravel Inc. as per the terms and conditions outlined in the contract.
What is the Perfect Tender Rule?
The perfect tender rule dictates that the goods being delivered must conform in every way to the contract description agreed upon by both parties. In this case, Quarry Equipment Corporation must ensure that the three bulldozers meet Rock & Gravel Inc.'s expectations and adhere to the specifications outlined in the lease agreement. Failure to meet these requirements can result in legal consequences for Quarry Equipment Corporation.
What must Quarry Equipment Corporation do under the perfect tender rule when leasing bulldozers to Rock & Gravel Inc.? C) in every way.Explanation
The perfect tender rule establishes that the goods must conform with the buyer's or lessee's expectations and product description. If the goods, or in this case the bulldozers, do not satisfy Rock and Gravel's expectations and product description, then Rock and Gravel can legally reject the bulldozers delivered.