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This entry was published on 2014-09-22
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Seller's Resale Including Contract for Resale
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 7
Section 2--706. Seller's Resale Including Contract for Resale.

(1) Under the conditions stated in Section 2--703 on seller's
remedies, the seller may resell the goods concerned or the undelivered
balance thereof. Where the resale is made in good faith and in a
commercially reasonable manner the seller may recover the difference
between the resale price and the contract price together with any
incidental damages allowed under the provisions of this Article (Section
2--710), but less expenses saved in consequence of the buyer's breach.

(2) Except as otherwise provided in subsection (3) or unless otherwise
agreed resale may be at public or private sale including sale by way of
one or more contracts to sell or of identification to an existing
contract of the seller. Sale may be as a unit or in parcels and at any
time and place and on any terms but every aspect of the sale including
the method, manner, time, place and terms must be commercially
reasonable. The resale must be reasonably identified as referring to the
broken contract, but it is not necessary that the goods be in existence
or that any or all of them have been identified to the contract before
the breach.

(3) Where the resale is at private sale the seller must give the buyer
reasonable notification of his intention to resell.

(4) Where the resale is at public sale

(a) only identified goods can be sold except where there is a

recognized market for a public sale of futures in goods of

the kind; and

(b) it must be made at a usual place or market for public sale if

one is reasonably available and except in the case of goods

which are perishable or threaten to decline in value speedily

the seller must give the buyer reasonable notice of the time

and place of the resale; and

(c) if the goods are not to be within the view of those attending

the sale the notification of sale must state the place where

the goods are located and provide for their reasonable

inspection by prospective bidders; and

(d) the seller may buy.

(5) A purchaser who buys in good faith at a resale takes the goods
free of any rights of the original buyer even though the seller fails to
comply with one or more of the requirements of this section.

(6) The seller is not accountable to the buyer for any profit made on
any resale. A person in the position of a seller (Section 2--707) or a
buyer who has rightfully rejected or justifiably revoked acceptance must
account for any excess over the amount of his security interest, as
hereinafter defined (subsection (3) of Section 2--711).