Mastercraft Boat manufactured boats and often used instrument panels and electri
ID: 2425594 • Letter: M
Question
Mastercraft Boat manufactured boats and often used instrument panels and electrical systems assembled or manufactured by Ace Industries. Typically, Ace would order electrical instruments and other parts and assemble them to specifications that Mastercraft provided. Mastercraft decided to work with a different assembler, M & G Electronics, so it terminated its relationship with Ace. Mastercraft then requested that Ace deliver all of the remaining instruments and other parts that it had purchased for use in Mastercraft boats. Ace delivered the inventory to Mastercraft, which inspected it and kept some of the items, but returned others to Ace, stating that the shipment had been unauthorized. Later, Mastercraft requested that Ace deliver the remaining parts (which Mastercraft had sent back to Ace) to M & G, which Ace did. Mastercraft then refused to pay for these parts, claiming that they were non-conforming. Is Ace entitled to its money for the parts?
Explanation / Answer
Ace is entitled to its money for the parts - as the parts have been re-sent(after having been returned once, by Mastercraft Boat-for reasons of unauthorised shipment) -
The parts were delivered to M&G ,on request and at the behest of Mastercraft- who is deemed to have satisfied himself about the conformity of the parts .Here ordering again the once -returned goods precludes or covers the aspect of conformity of the goods, so requested. So, the seller,ie. Ace is right in believing that the goods requested meets the buyer's norms and has acted in good faith.
Even if Mastercraft has rejected for reasons of non-conformity of the parts,Ace has the right to deliver conforming goods , within a stipulated time-period ,agreed by both the parties.