Sec. 42a-2-706. Seller's resale including contract for resale.
Sec. 42a-2-706. Seller's resale including contract for resale. (1) Under the conditions stated in section 42a-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 section 42a-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, as defined by section 42a-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 defined by subsection (3) of section 42a-2-711.
(1959, P.A. 133, S. 2-706.)
See note to Sec. 42a-2-703.
Annotations to former statute (1958 Rev., S. 42-60):
Right of resale; action for difference between amount received and purchase price. 86 C. 30; 88 C. 135. Difference
between contract price and price realized on resale a proper element of damage. 112 C. 650. Cited. 137 C. 250.