8.2-706 - Seller's resale including contract for resale.
§ 8.2-706. Seller's resale including contract for resale.
(1) Under the conditions stated in § 8.2-703 on seller's remedies, the sellermay resell the goods concerned or the undelivered balance thereof. Where theresale is made in good faith and in a commercially reasonable manner theseller may recover the difference between the resale price and the contractprice together with any incidental damages allowed under the provisions ofthis title (§ 8.2-710), but less expenses saved in consequence of the buyer'sbreach.
(2) Except as otherwise provided in subsection (3) or unless otherwise agreedresale may be at public or private sale including sale by way of one or morecontracts 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 anyterms but every aspect of the sale including the method, manner, time, placeand terms must be commercially reasonable. The resale must be reasonablyidentified as referring to the broken contract, but it is not necessary thatthe goods be in existence or that any or all of them have been identified tothe contract before the breach.
(3) Where the resale is at private sale the seller must give the buyerreasonable 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 recognizedmarket 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 isreasonably available and except in the case of goods which are perishable orthreaten to decline in value speedily the seller must give the buyerreasonable 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 salethe notification of sale must state the place where the goods are located andprovide 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 ofany rights of the original buyer even though the seller fails to comply withone or more of the requirements of this section.
(6) The seller is not accountable to the buyer for any profit made on anyresale. A person in the position of a seller (§ 8.2-707) or a buyer who hasrightfully rejected or justifiably revoked acceptance must account for anyexcess over the amount of his security interest, as hereinafter defined(subsection (3) of § 8.2-711).
(1964, c. 219.)