2020 New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Article 2 - Sales
Part 6 - BREACH, REPUDIATION AND EXCUSE
Section 55-2-601 - Buyer's rights on improper delivery.

Universal Citation: NM Stat § 55-2-601 (2020)

Subject to the provisions of this article on breach in installment contracts (Section 2-612 [55-2-612 NMSA 1978]) and unless otherwise agreed under the sections on contractual limitations of remedy (Sections 2-718 [55-2-718 NMSA 1978] and 2-719 [55-2-719 NMSA 1978]), if the goods or the tender of delivery fail in any respect to conform to the contract, the buyer may:

(a) reject the whole; or

(b) accept the whole; or

(c) accept any commercial unit or units and reject the rest.

History: 1953 Comp., § 50A-2-601, enacted by Laws 1961, ch. 96, § 2-601.

ANNOTATIONS

OFFICIAL COMMENTS

UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.

Prior uniform statutory provision. — No one general equivalent provision but numerous provisions, dealing with situations of non-conformity where buyer may accept or reject, including Sections 11, 44 and 69(1), Uniform Sales Act.

Changes. — Partial acceptance in good faith is recognized and the buyer's remedies on the contract for breach of warranty and the like, where the buyer has returned the goods after transfer of title, are no longer barred.

Purposes of changes. — To make it clear that:

1. A buyer accepting a non-conforming tender is not penalized by the loss of any remedy otherwise open to him. This policy extends to cover and regulate the acceptance of a part of any lot improperly tendered in any case where the price can reasonably be apportioned. Partial acceptance is permitted whether the part of the goods accepted conforms or not. The only limitation on partial acceptance is that good faith and commercial reasonableness must be used to avoid undue impairment of the value of the remaining portion of the goods. This is the reason for the insistence on the "commercial unit" in Paragraph (c). In this respect, the test is not only what unit has been the basis of contract, but whether the partial acceptance produces so materially adverse an effect on the remainder as to constitute bad faith.

2. Acceptance made with the knowledge of the other party is final. An original refusal to accept may be withdrawn by a later acceptance if the seller has indicated that he is holding the tender open. However, if the buyer attempts to accept, either in whole or in part, after his original rejection has caused the seller to arrange for other disposition of the goods, the buyer must answer for any ensuing damage since the next section provides that any exercise of ownership after rejection is wrongful as against the seller. Further, he is liable even though the seller may choose to treat his action as acceptance rather than conversion, since the damage flows from the misleading notice. Such arrangements for resale or other disposition of the goods by the seller must be viewed as within the normal contemplation of a buyer who has given notice of rejection. However, the buyer's attempts in good faith to dispose of defective goods where the seller has failed to give instructions within a reasonable time are not to be regarded as an acceptance.

Cross references. — Sections 2-602(2) (a), 2-612, 2-718 and 2-719.

"Buyer". Section 2-103.

"Commercial unit". Section 2-105.

"Conform". Section 2-106.

"Contract". Section 1-201.

"Goods". Section 2-105.

"Installment contract". Section 2-612.

"Rights". Section 1-201.

-.

Sample not "non-conforming" goods. — Granting of the company's counterclaim for malicious abuse of process was proper where the company did not deliver non-conforming goods because the door sample was not a true "sample" or an example of the goods themselves, but, rather, was a preliminary model or prototype that preceded the delivery of actual goods. Dawley v. La Puerta Architectural Antiques, Inc., 2003-NMCA-029, 133 N.M. 309, 62 P.3d 1271.

Law reviews. — For comment, "Commercial Law - Uniform Commercial Code - Section 2-609: Right to Adequate Assurance of Performance," see 7 Nat. Resources J. 397 (1967).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 67 Am. Jur. 2d Sales §§ 407, 431, 504, 518, 530, 679; 67A Am. Jur. 2d Sales §§ 853 et seq., 1037, 1212, 1213.

Remedy of seller in case of mistake as to amount of commodity called for by contract, 31 A.L.R. 384.

Delivery to carrier of quantity of goods greater than that called for by contract as passing title to goods, 38 A.L.R. 1544.

Acceptance of some "commercial units" of goods purchased under UCC § 2-601(C), 41 A.L.R.4th 396.

77A C.J.S. Sales § 194 et seq.

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