Article 2 — Sales · Section 2-709
Explore UCC § 2-709, which addresses the seller's right to recover the price in instances of buyer default after the risk of loss has passed.
Source: U.C.C. § 2-709
If the buyer fails to pay the price as it becomes due, the seller may recover, together with any incidental damages, the price of goods accepted or of conforming goods lost or damaged within a reasonable time after risk of loss has passed to the buyer.
UCC § 2-709 allows a seller to recover the price of goods if the buyer fails to pay after the risk of loss has been transferred to the buyer. This section also permits sellers to include incidental damages associated with the non-payment.
The amount of money or equivalent given in exchange for goods.
Expenses incurred by the seller due to the buyer's breach, such as storage or transportation costs.
The responsibility for a loss that occurs after the goods are delivered.
Example 1
A seller delivers machinery to a buyer who fails to pay. Under UCC § 2-709, the seller can sue to recover the price of the machinery.
Example 2
A seller sells a batch of wine to a retailer and the retailer defaults on payment after accepting the wine. The seller is entitled to recover the sale price of the wine, along with any related damages.