Citrus pellets. Some of shipment was not good. D rejected all goods. P refused to take them back. Later X came along and bought them from storage place and then sold them to D for lower price. D used pellets just the same as we have if he bought them from P.
Can the buyers reject the good?
If a condition is breached the buyer is entitled to reject the goods (treat contract at an end), but if it is an intermediate stipulation (intermediate terms) that was breached the buyer cannot reject the unless breach goes to the root of the contract.
**TEST to determine if allowed to treat contract as brought to an end: does the effect of the breach (consequences) deprive you substantially of the benefit expected to receive out of the contract?
You must look at the consequence of the breach to determine if it is an action for rejection of the good or a right to sue for damages arises.
Breaches going to the root”.
**If the breach went to the root of the matter, the stipulation was to be considered a condition precedent: but if the breach did not go to the root, the stipulation was considered to be an independent covenant which could be compensated for in damages.
1st see whether it is a condition in its true sense
**If not a condition, then look to the extent of the breach
***If goes to root on K then other party is considered discharged
You cannot tell at the outset looking at the term whether the consequence of the breach should be rejection of the goods or damage
**You must wait and look at the consequence of the breach
*1st look at whether it is a condition or warranty
*2nd – if you don’t know then it is an intermediate stipulation then you look at the consequences to determine whether to construe as a condition and end K or treat as warranty and get damages
*3rd – what or how serious should the damages be
How much were they deprived?