Chapter 25

Chapter 25 - Chapter 25: Sales Remedies BUL 3350 - Chapter...

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Unformatted text preview: Chapter 25: Sales Remedies BUL 3350 - Chapter 25 1 Topics Covered in this Chapter A. Remedies of the Seller B. Remedies of the Buyer C. Contractual Provisions Affecting Contractual Remedies Remedies BUL 3350 - Chapter 25 2 Default Buyer's Default – the seller's remedies are triggered by the buyer's actions in wrongfully rejecting or revoking acceptance of the goods, in failing to make payment due on or before delivery, or in repudiating the contract. delivery, Seller's Default – the buyer's remedies arise Seller's where the seller fails to make delivery or repudiates the contract, or where the buyer rightfully rejects or justifiably revokes acceptance of goods tendered or delivered. acceptance BUL 3350 - Chapter 25 3 Remedies of the Seller Remedies To Withhold Delivery To Stop Delivery – if the buyer is To insolvent (one who is unable to pay his debts as they become due or one whose total liabilities exceed his total assets), the seller may stop any delivery; if the buyer repudiates or otherwise breaches, the seller may stop carload, truckload, planeload, or larger shipments. planeload, To Identify Goods BUL 3350 - Chapter 25 4 Remedies of the Seller Remedies To Resell the Goods – the seller may resell To the goods concerned or the undelivered balance of the goods and recover the difference between the contract price and the resale price, together with any incidental damages, less expenses saved. damages, To Recover Damages for Nonacceptance or To Repudiation Repudiation To Recover the Price – the seller may recover To the price. the BUL 3350 - Chapter 25 5 Remedies of the Seller Remedies Market Price Differential – the seller may Market recover damages from the buyer measured by the difference between the unpaid contract price and the market price at the time and place of tender of the goods, plus incidental damages, less expenses saved. damages, Lost Profit – in the alternative, the seller may Lost recover the lost profit, including reasonable overhead, plus incidental damages, less expenses saved. expenses BUL 3350 - Chapter 25 6 Remedies of the Seller Remedies To Recover Incidental Damages – To incidental damages include any commercially reasonable charges, expenses, or commissions directly resulting from the breach. resulting To Cancel the Contract To Reclaim the Goods upon the To Buyer's Insolvency – an unpaid seller may reclaim goods from an insolvent buyer under certain circumstances. buyer BUL 3350 - Chapter 25 7 Remedies of the Seller BUL 3350 - Chapter 25 8 Remedies of the Buyer Remedies To Cancel the Contract To Recover Payments Made To Cover – the buyer may obtain cover To by proceeding in good faith and without unreasonable delay to purchase substitute goods; the buyer may recover the difference between the cost of cover and the contract price, plus any incidental and consequential damages, less expenses saved. less BUL 3350 - Chapter 25 9 Remedies of the Buyer Remedies To Recover Damages for Nondelivery To or Repudiation – the buyer may recover the difference between the market price at the time the buyer learned of the breach and the contract price, together with any incidental and consequential damages, less expenses saved. damages, To Recover Identified Goods on the To Seller's Insolvency – for which he has paid all or part of the price. paid BUL 3350 - Chapter 25 10 Remedies of the Buyer Remedies To Sue for Replevin – the buyer may To recover goods identified to the contract if (1)­the buyer is unable to obtain cover or (2)­the goods have been shipped under reservation of a security interest in the seller. seller. To Sue for Specific Performance – the To buyer may obtain specific performance where the goods are unique or in other proper circumstances. proper BUL 3350 - Chapter 25 11 Remedies of the Buyer Remedies To Enforce a Security Interest – a buyer who To has rightfully rejected or justifiably revoked acceptance of goods that remain in her possession has a security interest in these goods for any payments that she has made on their price and for any expenses she has reasonably incurred. reasonably To Recover Incidental Damages – the buyer To may recover incidental damages, including any commercially reasonable expenses connected with the delay or other breach. with BUL 3350 - Chapter 25 12 Remedies of the Buyer Remedies To Recover Damages for Breach in To Regard to Accepted Goods – the buyer may recover damages resulting in the ordinary course of events from the seller's breach; in the case of breach of warranty,such recovery is the difference between the value the goods would have had if they had been as warranted and the value of the nonconforming goods that have been accepted. that BUL 3350 - Chapter 25 13 Remedies of the Buyer Remedies To Recover Consequential Damages – the To buyer may recover consequential damages resulting from the seller's breach, including (1)­ resulting any loss resulting from the buyer's any requirements and needs of which the seller at the time of contracting had reason to know and which the buyer could not reasonably prevent by cover or otherwise, and (2)­injury to person or property proximately resulting from any breach of warranty. breach BUL 3350 - Chapter 25 14 Remedies of the Buyer Obligation -oriented Buyer rightfully rejects goods Buyer justifiably revokes acceptance Seller fails to deliver Cancel • Have a security interest Cancel • Recover identified goods if seller is insolvent • Replevy goods • Obtain specific performance • Recover identified goods if seller is insolvent • Replevy goods • Obtain specific performance Goods-oriented • Have a security interest Money-oriented • Recover payments made • Cover and recover damages • Recover damages for nondelivery • Recover payments made • Cover and recover damages • Recover damages for nondelivery • Recover payments made • Cover and recover damages • Recover damages for nondelivery • Recover payments made • Cover and recover damages • Recover damages for nondelivery • Recover damages for breach of warranty BUL 3350 - Chapter 25 15 Cancel Seller repudiates Buyer accepts nonconforming goods Cancel Contractual Provisions Affecting Remedies Liquidation or Limitation of Damages – the Liquidation parties may specify the amount or measure of damages that may be recovered in the event of a breach if the amount is reasonable. breach Modification or Limitation of Remedy by Modification Agreement – the contract between the parties may expressly provide for remedies in addition to those in the Code, or it may limit or change the measure of damages recoverable for breach. breach. BUL 3350 - Chapter 25 16 ...
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