TITLE 6A
Uniform Commercial Code
CHAPTER 6A-2
Sales
PART 6A-2-701
Remedies
SECTION 6A-2-706
§ 6A-2-706 Seller's resale including
contract for resale.
(1) Under the conditions stated in § 6A-2-703 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
chapter (§ 6A-2-710), but less expenses saved in consequence of the
buyer's breach.
(2) Except as otherwise provided in subsection (3) 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 or her 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 (§ 6A-2-707) or a
buyer who has rightfully rejected or justifiably revoked acceptance must
account for any excess over the amount of his or her security interest, as
hereinafter defined (§ 6A-2-711(3)).
History of Section.
(P.L. 1960, ch. 147, § 1.)