Question

When a buyer is in breach of a contract for the sale of goods, the seller may withhold delivery. Which of the following is true?

A. The breach justifying withholding delivery of all undelivered goods need not go to the whole contract.
B. When the breach regarding one installment substantially impairs the value of the whole contract, all undelivered goods may be withheld.
C. The seller who withholds delivery may not proceed with other remedies.
D. Withholding delivery is no longer available once goods are in the hands of a carrier even though the shipping term is FOB destination.

Answer 1

When a buyer is in breach of a contract for the sale of goods, the seller may withhold delivery of all undelivered goods if the breach regarding one installment substantially impairs the value of the whole contract.

Step-by-step explanation:

When a buyer is in breach of a contract for the sale of goods, the seller may withhold delivery. In this situation, option B is true. When the breach regarding one installment substantially impairs the value of the whole contract, all undelivered goods may be withheld. This means that if the breach by the buyer significantly affects the value of the entire contract, the seller has the right to withhold delivery of all undelivered goods.