§ 2-706 — Seller's Resale Including Contract for Resale

Section 2--706. Seller's Resale Including Contract for Resale.\n (1) Under the conditions stated in Section 2--703 on seller's\nremedies, the seller may resell the goods concerned or the undelivered\nbalance thereof. Where the resale is made in good faith and in a\ncommercially reasonable manner the seller may recover the difference\nbetween the resale price and the contract price together with any\nincidental damages allowed under the provisions of this Article (Section\n2--710), but less expenses saved in consequence of the buyer's breach.\n (2) Except as otherwise provided in subsection (3) or unless otherwise\nagreed resale may be at public or private sale including sale by way of\none or more contracts to sell or of identification to an existing\ncontract of the seller. Sale may be as a unit or in parcels and at any\ntime and place and on any terms but every aspect of the sale including\nthe method, manner, time, place and terms must be commercially\nreasonable. The resale must be reasonably identified as referring to the\nbroken contract, but it is not necessary that the goods be in existence\nor that any or all of them have been identified to the contract before\nthe breach.\n (3) Where the resale is at private sale the seller must give the buyer\nreasonable notification of his intention to resell.\n (4) Where the resale is at public sale\n (a) only identified goods can be sold except where there is a\n recognized market for a public sale of futures in goods of\n the kind; and\n (b) it must be made at a usual place or market for public sale if\n one is reasonably available and except in the case of goods\n which are perishable or threaten to decline in value speedily\n the seller must give the buyer reasonable notice of the time\n and place of the resale; and\n (c) if the goods are not to be within the view of those attending\n the sale the notification of sale must state the place where\n the goods are located and provide for their reasonable\n inspection by prospective bidders; and\n (d) the seller may buy.\n (5) A purchaser who buys in good faith at a resale takes the goods\nfree of any rights of the original buyer even though the seller fails to\ncomply with one or more of the requirements of this section.\n (6) The seller is not accountable to the buyer for any profit made on\nany resale. A person in the position of a seller (Section 2--707) or a\nbuyer who has rightfully rejected or justifiably revoked acceptance must\naccount for any excess over the amount of his security interest, as\nhereinafter defined (subsection (3) of Section 2--711).\n