Legal Definitions - nonconforming goods

Nonconforming goods refers to items delivered by a seller that do not meet the specifications, quantity, quality, or description agreed upon in a sales contract or purchase order.

When goods are nonconforming, the buyer typically has certain legal rights, such as rejecting the goods, seeking a replacement, or demanding a refund, depending on the terms of the contract and applicable laws.

• Example 1: Incorrect Product Type

  A small electronics store orders 50 units of a specific model of noise-canceling headphones from a distributor. When the shipment arrives, the store discovers that 40 units are the correct model, but 10 units are an older, less expensive model of headphones from the same brand.

  Explanation: The 10 units of the older model are nonconforming goods because they do not match the specific product type and model that was ordered and agreed upon in the purchase contract.

• Example 2: Quantity Discrepancy

  A clothing boutique places an order for 100 cashmere sweaters in various sizes and colors. Upon delivery, the boutique counts the items and finds only 90 sweaters in the box.

  Explanation: The entire shipment, or at least the missing 10 sweaters, constitutes nonconforming goods because the quantity delivered does not match the 100 sweaters specified in the order.

• Example 3: Quality or Condition Issue

  A furniture retailer orders 20 custom-built oak dining chairs, specifying that they must have a natural, unstained finish. When the chairs arrive, half of them have noticeable scratches and dents, and five of them have a light varnish applied, contrary to the "unstained" requirement.

  Explanation: The chairs with scratches, dents, or the applied varnish are nonconforming goods because they do not meet the agreed-upon quality standards (undamaged) or the specific finish description (unstained) outlined in the purchase agreement.