Article 2 — Sales · Section 2-714
Guide to UCC § 2-714, which addresses the buyer's damages in the event of a breach of contract in sales transactions.
Source: U.C.C. § 2-714
UCC § 2-714 provides that the measure of damages for breach of contract by the seller is the difference between the market price at the time the buyer learned of the breach and the contract price together with any consequential damages as provided in § 2-715.
UCC § 2-714 outlines how a buyer can recover damages if a seller breaches a sales contract. The buyer is entitled to the difference between the market price of the goods at the time they discovered the breach and the agreed contract price, plus any additional damages as allowed under related provisions.
The price that goods are selling for in the market at the time the buyer becomes aware of the breach.
Damages that can be recovered for losses incurred as a result of the breach, provided they were foreseeable at the time of contract formation.
Example 1
A buyer contracts to purchase 100 widgets for $10 each, but upon delivery, discovers that the seller has breached the contract, and the market price is now $12 per widget. The buyer could claim $200 in damages ($2 difference x 100 widgets).
Example 2
If a buyer ordered a custom product but received the wrong item, resulting in lost profits from a cancelled order, they could potentially claim additional consequential damages under UCC § 2-715.