A Buyer wrongfully rejects a shipment of standard lumber. The Seller resells the lumber for 500 less than the contract price. What can the Seller recover?

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UCC Contracts QUESTION #5861

Question 1

A Buyer wrongfully rejects a shipment of standard lumber. The Seller resells the lumber for $500 less than the contract price. What can the Seller recover?

Nothing, once the goods are resold.
The difference between the contract price and the resale price ($500).✔️
The full contract price.
Punitive damages for the Buyer's breach.

Correct Answer Explanation

Under UCC §2-706, a seller may recover the difference between the resale price and the contract price, plus incidental damages.

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