70A-2-706 - Seller's resale including contract for resale -- Notice requirements.
70A-2-706. Seller's resale including contract for resale -- Notice requirements.
(1) Under the conditions stated in Section 70A-2-703 on seller's remedies, the seller mayresell the goods concerned or the undelivered balance thereof. Where the resale is made in goodfaith and in a commercially reasonable manner the seller may recover the difference between theresale price and the contract price together with any incidental damages allowed under theprovisions of this chapter (Section 70A-2-710), but less expenses saved in consequence of thebuyer's breach.
(2) Except as otherwise provided in Subsection (3) or unless otherwise agreed resale maybe at public or private sale including sale by way of one or more contracts to sell or ofidentification to an existing contract of the seller. Sale may be as a unit or in parcels and at anytime 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 asreferring to the broken contract, but it is not necessary that the goods be in existence or that any orall 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 reasonablenotification 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 apublic 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 reasonablyavailable and except in the case of goods which are perishable or threaten to decline in valuespeedily 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 ofsale must state the place where the goods are located and provide for their reasonable inspectionby 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 ofthe original buyer even though the seller fails to comply with one or more of the requirements ofthis section.
(6) The seller is not accountable to the buyer for any profit made on any resale. A personin the position of a seller (Section 70A-2-707) or a buyer who has rightfully rejected or justifiablyrevoked acceptance must account for any excess over the amount of his security interest, ashereinafter defined (Subsection (3) of Section 70A-2-711).
Enacted by Chapter 154, 1965 General Session