Article 2 — Sales · Section 2-715
This section addresses the buyer's incidental and consequential damages arising from a seller's breach of contract.
Source: U.C.C. § 2-715
In addition to the right to recover damages under Section 2-714, the buyer may recover for any loss resulting from general or particular requirements and needs that the seller at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise.
UCC § 2-715 allows a buyer to recover damages that stem from a seller's breach of contract, including any losses that were foreseeable and that the seller should have known about at the time of the contract. It highlights the importance of both incidental and consequential damages in sales transactions.
Costs incurred by the buyer in dealing with the seller's breach, such as transportation, inspection, and storage fees.
Losses that result from the buyer's particular circumstances that the seller had reason to know about at the time of the sale.
Example 1
A buyer purchases a specialized machine but receives a defective model, causing production delays and financial losses due to missed contracts. The buyer can claim damages resulting from both the immediate repair costs (incidental damages) and those losses from the delayed production (consequential damages).
Example 2
A store orders a large shipment of seasonal goods, which are delivered late due to the seller's breach. The store can seek reimbursement for the additional shipping costs incurred to expedite the delivery and for the lost sales revenue resulting from not having the goods available on time.