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The Vermont Statutes Online



Title

09A

:
Uniform Commercial Code






Chapter

002

:
Sales











 

§

2-706. Seller's resale including contract for resale

(1) Under the

conditions stated in § 2-703 of this title on seller's remedies, the seller may

resell the goods concerned or the undelivered balance thereof. Where the resale

is made in good faith and in a commercially reasonable manner the seller may

recover the difference between the resale price and the contract price together

with any incidental damages allowed under the provisions of this article (§

2-710), but less expenses saved in consequence of the buyer's breach.

(2) Except as

otherwise provided in subsection (3) of this section or unless otherwise agreed

resale may be at public or private sale including sale by way of one or more

contracts 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 any terms

but every aspect of the sale including the method, manner, time, place and

terms must be commercially reasonable. The resale must be reasonably identified

as referring to the broken contract, but it is not necessary that the goods be

in existence or that any or all of them have been identified to the contract

before the breach.

(3) Where the

resale is at private sale the seller must give the buyer reasonable 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 recognized market 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 is reasonably available

and except in the case of goods which are perishable or threaten to decline in

value speedily the seller must give the buyer reasonable 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 sale the notification of

sale must state the place where the goods are located and provide 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 of any rights of the

original buyer even though the seller fails to comply with one or more of the

requirements of this section.

(6) The seller

is not accountable to the buyer for any profit made on any resale. A person in

the position of a seller (§ 2-707) or a buyer who has rightfully rejected or

justifiably revoked acceptance must account for any excess over the amount of

his security interest, as hereinafter defined (§ 2-711(3)).