Contract Damages and Remedies U C C Remedies

Contract Damages and Remedies U. C. C. Remedies for Breach For Sellers on Buyers’ Breach: a) loss, in case of resale, + incidental damages (§ 2 -706)). b) lost bargain/value, if no resale (price differential time and place of breach), + incidentals (§ 2 -708(1)). c) lost profit on the sale for large-volume sellers, + incidentals (§ 2 -708(2)). For Buyers on Sellers’ Breach: a) “cover” plus incidental damages and (proved) consequential ones (§ 2 -712)). b) lost “bargain value” (time and place learning of breach, if no cover) + incidentals and (proved) consequential ones (§ 2 -713)). c) warranty damages – differential of good as promised and as delivered (§ 2 -714)). These are clearly “compensatory. ” There are other steps possible, e. g. suspending payment or shipment. The U. C. C. does not define what a breach is, but late delivery, poor quality, right to ask for adequate assurances, etc. , are all possible. Sellers do not get consequential damages under U. C. C. Article 2. Can you think why? Buyers s lose right to any consequential damages that could have been avoided by acting reasonably. U. C. C. Art. 2, § 2 -715(2)(a). Does this seem familiar? To require reasonable attempts to avoid? Many similarities to common law damages, but some differences. © 2018 Paul J. Carrier, Paul J Carrier, LLC Blue – Category Recognition; White – Specific Category; Yellow – “Black Letter” Rules (to be memorized); Green – Main Factual Issues – Analysis ; Red – Upper-Level, Integrated Comprehension