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Simple English definitions for legal terms
Perfect Tender Rule
Read a random definition: stock purchase agreement
A quick definition of Perfect Tender Rule:
Perfect Tender Rule: When someone buys something from another person, if the thing they receive is not exactly what they agreed to buy, they can say no and send it back. This is called the perfect tender rule and it applies to things that are being sold.
A more thorough explanation:
According to Article 2 of the Uniform Commercial Code, when goods are sold, the perfect tender rule applies. This means that if a seller delivers goods to a buyer, the buyer has the right to reject the goods if they are not perfect in some way.
For example, if a buyer orders 100 red t-shirts from a seller, but the seller delivers 50 red t-shirts and 50 blue t-shirts, the buyer can reject the delivery because it is not a perfect tender. Similarly, if the t-shirts are delivered with stains or holes, the buyer can also reject the delivery.
The perfect tender rule is important because it protects buyers from receiving goods that are not what they ordered or are defective in some way. It also encourages sellers to ensure that their deliveries are perfect to avoid the risk of rejection and potential legal action.