Sec. 42a-2-708. Seller's damages for nonacceptance or repudiation.
Sec. 42a-2-708. Seller's damages for nonacceptance or repudiation. (1) Subject
to subsection (2) and to the provisions of section 42a-2-723 with respect to proof of
market price, the measure of damages for nonacceptance or repudiation by the buyer is
the difference between the market price at the time and place for tender and the unpaid
contract price together with any incidental damages provided in section 42a-2-710, but
less expenses saved in consequence of the buyer's breach.
(2) If the measure of damages provided in subsection (1) is inadequate to put the
seller in as good a position as performance would have done then the measure of damages
is the profit (including reasonable overhead) which the seller would have made from
full performance by the buyer, together with any incidental damages provided in section
42a-2-710, due allowance for cost reasonably incurred and due credit for payments or
proceeds of resale.
(1959, P.A. 133, S. 2-708.)
Annotations to former statute (1958 Rev., S. 42-64):
This section substantially declaratory of common law. 85 C. 140. Damages recoverable. 86 C. 26; Id., 494; 90 C. 485;
93 C. 689. Repudiation of contract by vendee; sale of goods by vendor; damages recoverable. 88 C. 130. Necessity of
pleading tender of balance of purchase price in suit for nondelivery. 91 C. 27. Refusal of buyer to receive goods as breach
of contract and as excusing tender of delivery. 98 C. 418; 106 C. 377. Meaning and effect of rescission by seller for buyer's
refusal to perform; refusal to open bank credit. Id., 671. Damages may be full contract price where no available market.
Id., 700. Elements of damages discussed. Id. Appropriate remedy where buyer refuses to accept all installments. 106 C.
377. Measure of damages for anticipatory breach by buyer of goods to be put in condition for sale by the seller; effect of
no available market. 108 C. 635. Cited. 113 C. 230. "Available market" means an existing market open to the plaintiff.
139 C. 705. When a buyer refuses to accept and pay for goods and there is an available market for them, the measure of
damages is the difference between the contract price and the market or current price at the time the buyer refused to accept
them. 142 C. 172. See note to Sec. 42a-2-607, former Sec. 42-51.
If there is a breach, the remedy is in this section. Leaving goods of seller in open field about a half mile from his house
is not justified. 3 CS 277.
Annotations to present section:
Cited. 183 C. 266.
Award of damages constituting gross profit or markup on contract held to be sustained by finding of facto where net
profit percentage of yearly operations would be inadequate to put seller in as good a position as performance of the contract
would have done. 4 Conn. Cir. Ct. 333-338. Expenses of installation saved by seller of kitchen equipment because of
defendant's breach of contract are not allowable deductions where recovery is allowed in an action for the contract price
under section 42a-2-709. 5 Conn. Cir. Ct. 444.