Lloyd's Maritime and Commercial Law Quarterly
THE RIGHT TO CURE DEFECTS IN GOODS AND DOCUMENTS
Clark Oil Trading v. Amerada Hess Phillips Puerto Rico Core v. Tradax Petroleum Empresa Exportadora de Azucar v. Industria Azucarera Nacional
Under a documentary sale, the degree of the seller’s compliance with the statutory and contractual requirements will determine the validity of his tender. Where the sale contract requires for instance the tender of an on board bill of lading attesting the shipment of the goods within certain dates, the buyer is generally under no obligation to accept anything but that document. However, under some jurisdictions the seller may have a right to make a second tender if the tender he made is rejected.
The Uniform Commercial Code, s. 2–508
This section reads as follows:
Cure by Seller of Improper Tender or Delivery, Replacement.
(1) Where any tender or delivery by the seller is rejected because non-conforming and the time for performance has not yet expired, the seller may seasonably notify the buyer of his intention to cure and may then within the contract time make a conforming delivery.
(2) Where the buyer rejects a non-conforming tender which the seller had reasonable grounds to believe would be acceptable with or without money allowance the seller may if he seasonably notifies the buyer have a further reasonable time to substitute a conforming tender.
The seller may still make a good tender within the contract period, even if he has taken back the non-conforming goods and returned the price, provided that he promptly notifies
456