West's Business Law with Online Research Guide, 9th Edition

SELLER’S REMEDIES: GOODS IN THE
SELLER’S POSSESSION - PT. I
 If the buyer breaches the contract before it has received the
goods, the seller may:
(1) cancel the contract, giving the buyer notice of
cancellation,
(2) withhold delivery ,
(3) resell or otherwise dispose of the goods, in a
commercially reasonable manner, retaining any profit
over the contract price or holding the buyer liable for
any deficiency, plus any incidental damages,
 Unfinished Goods: If the goods are unfinished at
the time of the breach, the seller may, if
commercially reasonable, cease manufacturing
the goods and dispose of them for salvage value.
 Notice: Unless the goods are perishable or
threaten to rapidly decline in value, the seller
must give the buyer notice of the resale or other
planned disposition.
Ch. 22: Remedies for Breach of Sales and Lease Contracts - No. 1
West’s Business Law (9th ed.)

SELLER’S REMEDIES: GOODS IN THE
SELLER’S POSSESSION - PT. II
(4) if the seller is unable to dispose of the goods in a
commercially reasonable manner, sue to recover the
purchase price or payments due , plus incidental
damages, or
(5) sue to recover as damages
(a) the difference between the contract price and
the fair market price of the goods (at the time
and place of tender), plus incidental damages, or
(b) the seller’s lost profits , including a reasonable
allowance for overhead and other expenses.
 A seller can only recover lost profits if
recovering the difference between the
contract price and the market price at the
time and place of tender will not place her in
the same position she would have been in
had the buyer performed.
Ch. 22: Remedies for Breach of Sales and Lease Contracts - No. 2
West’s Business Law (9th ed.)

SELLER’S REMEDIES: GOODS IN TRANSIT
 If the seller has delivered the goods to a carrier or bailee,
but the buyer has not yet received them, the seller may:
(1) if the buyer is insolvent , stop the carrier or bailee
from delivering the goods to the buyer, or
(2) if the buyer has breached the contract but is not
insolvent