What to do if f a person bought inventory from another person but the inventory ended up short, not as described and not worth as much as was made out to be?

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What to do if f a person bought inventory from another person but the inventory ended up short, not as described and not worth as much as was made out to be?

Can that person sue the other person? What if the person buying still owed money and refused to pay. Could the seller take the buyer to court and sue them?

Asked on October 1, 2013 under Business Law, Nevada

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

The buyer of the inventory could sue the seller for breach of contract.  A material (major) breach of contract has occurred since the inventory was short, was not what was described, and was not worth what the seller had claimed.  When there is a material breach of contract, the buyer can sue for breach of contract without tendering performance (paying for the goods), but see the exception below if shipment can be delivered in lots

If the inventory could be delivered in installments, then if a breach of contract occurred for one shipment, but not all shipments, then the entire contract has not been breached and buyer would have to accept delivery of subsequent installments.

Seller could sue the buyer for breach of contract for failure to pay for shipments of inventory which complied with the terms of the contract.


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