Price reduction remedy (Art. 50) May give buyer greater recovery than under Art. 74 Contract price x value of goods as is/value as warranted Statute of Limitations UCC: 4 years after the cause of action has accrued for breach of contract Same for international sales (2-703 to 2-709) remedies Seller’s UCC Goods not accepted non-delivery buyer breach and goods wrongfully rejected General: Refuse delivery 2-702 & 2-705 – Menu 2-703 – Complete or Scrap? 2-704 – Resale 2-704 – Contract/Market 2-708(1) – Lost profits 2-708(2) – Price 2-709 – Resale Remedy (2-706) Resale must be reasonably identified as referring to broken contract Resale can be by private sale or public sale (auction) If private sale, reasonable notice must be given to buyer of intent to resell If public sale, reasonable notice must be given to buyer of time and place of sale Unless goods are perishable or threaten to decline in value speedily All aspects of the sale must be commercially reasonable If seller follow 2-706 procedures, may recover under 2-708(1) doesn’t contract/market differential theory Same as formula buyer’s *Seller cannot get consequential damages, only incidental damages Lost Profits (3 situations generally) Volume Seller Seller lost a sale and had sufficient inventory Middle Person Middleperson have the good yet so he have anything doesn’t doesn’t to sell for market price Components manufacturer
Price reduction remedy (Art. 50) May give buyer greater recovery than under Art. 74 Contract price x value of goods as is/value as warranted Statute of Limitations UCC: 4 years after the cause of action has accrued for breach of contract Same for international sales Seller’s remedies (2-703 to 2-709) UCC Goods not accepted non-delivery buyer breach and goods wrongfully rejected General: Refuse delivery – 2-702 & 2-705 Menu – 2-703 Complete or Scrap? – 2-704 Resale – 2-704 Contract/Market – 2-708(1) Lost profits – 2-708(2) Price – 2-709 Resale Remedy (2-706) Resale must be reasonably identified as referring to broken contract Resale can be by private sale or public sale (auction) If private sale, reasonable notice must be given to buyer of intent to resell If public sale, reasonable notice must be given to buyer of time and place of sale Unless goods are perishable or threaten to decline in value speedily All aspects of the sale must be commercially reasonable If seller doesn’t follow 2-706 procedures, may recover under 2-708(1) contract/market differential theory Same as buyer’s formula *Seller cannot get consequential damages, only incidental damages Lost Profits (3 situations generally) Volume Seller Seller lost a sale and had sufficient inventory Middle Person Middleperson doesn’t have the good yet so he doesn’t have anything to sell for market price Components manufacturer