Sales Remedies

1
Sales Remedies
2
Sellers Remedies

• Damages for Nonacceptance/Repudiation
• Resale of goods
• Suit for Purchase price

3
Damages

• Primary Measure
• Difference between Contract and Market Price
  plus Incidentals less Expenses saved
• Secondary Measure
• Lost Profits

4
Resale

• Notice to Buyer
• Commercially Reasonable Sale
• Public/private sale
• Measure
• Difference between Contract price and Resale
  price plus Incidental damages less Expenses saved
  

5
Purchase Price

• Buyer accepts goods
• Loss/destruction of goods after risk of loss has
  passed to buyer
• Seller unable to resell the goods

6
Buyers Remedies

• Damages for Nondelivery/ Repudiation
• Cover
• Suit for goods
• Resale remedy
• Suit for breach of warranty

7
Nondelivery/Rejection/Revocation of Acceptance

• Cancel contract and recover any payments made to
  the seller plus
• Sue seller for damages or cover

8
Damages and Cover

• Damages for nondelivery
• Difference between Market Price and Contract
  Price plus Incidentals and Consequentials
• Cover purchase substitute goods
• Hold seller liable for difference between cover
  and contract prices plus incidentals and
  consequentials

9
Suit for Goods

• Specific performance remedy
• Unique goods or other proper circumstances
• Replevin of identified goods
• Buyer unable to cover
• Recovery of goods upon sellers insolvency
• Part payment identified goods

10
Buyers Remedy of Resale

• Buyer has security interest in goods for any
  payments made and costs incurred (e.g., storage
  of rejected goods)
• Buyer must give notice and conduct commercially
  reasonable sale
• Buyer is liable to account to seller for any
  excess on resale

11
Damages - Accepted Goods

• Suit for Breach of Warranty
• Notice to seller required
• Difference in value of goods the value in
  defective state and the value had they been as
  warranted

12
Consequential Damages

• Indirect economic losses caused by breach
• Seller reason to know
• Buyer duty to mitigate
• Personal injuries/property damage caused by
  defective goods

13
Contract Provisions on Remedies

• Liquidated damages clauses
• Limitation of remedies and damages
• Exclusive remedy clauses
• Must not fail of its essential purpose