Article 2 — Sales · Section 2-703
Understand the remedies for a buyer's breach of contract under UCC § 2-703.
Source: U.C.C. § 2-703
If the buyer wrongfully rejects goods or fails to make payment due under the contract, or repudiates the contract, the seller may: (a) take possession of the goods; (b) resell the goods and recover damages as provided in this article; or (c) recover the damages for non-acceptance as provided in this article.
UCC § 2-703 outlines the rights of a seller when a buyer breaches a sales contract. The seller can reclaim the goods, resell them to mitigate losses, or seek damages for non-acceptance.
An illegal act where one party fails to fulfill their contractual obligations.
Selling goods again after the initial sale has been breached.
Damages awarded for a buyer's failure to accept the goods as specified in a contract.
Example 1
A buyer orders 100 widgets but refuses to pay upon delivery. The seller can repossess the widgets or sell them to another buyer.
Example 2
A buyer rejects a shipment of goods that were delivered as per contract terms. The seller can resell the goods and claim the difference in price if sold for less.