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Buyer's Incidental and Consequential Damages

Learn the rules governing whether and to what extent the buyer may recover incidental and consequential damages.

Transcript

In addition to the remedies we discussed in other lessons, which aim to compensate the buyer for the loss of the seller’s performance, Article 2 also permits the buyer to recover incidental and consequential damages.

I. Incidental Damages

Incidental damages compensate the buyer for costs reasonably incurred in dealing with or mitigating the seller’s breach. Section 2-715 articulates three non-exclusive categories of recoverable incidental damages.

A. Handling Expenses

The first category includes...

Lessons

    • 1. Welcome to Sales
    • Welcome to Sales
    2. Introduction to UCC Article 2
    • Scope of Article 2: Transactions in Goods
    • Distinguishing Goods and Services Contracts
    • Key Terms in Article 2
    3. Contract Formation and Modification
    • Contract Formation and Modification
    • Battle of the Forms
    • The Statute of Frauds
    • The Parol Evidence Rule
    4. Contract Interpretation
    • Article 2 Gap-Fillers
    • Risk of Loss
    • Additional Interpretive Devices
    5. Performance
    • The Perfect-Tender Rule and the Right to Cure
    • Inspection and Acceptance
    • Rejection and Revocation
    6. Breach, Repudiation, and Excuse
    • Anticipatory Repudiation
    • Adequate Assurance
    • Impracticability of Performance
    7. UCC Article 2 Warranties
    • Express Warranties
    • Implied Warranty of Merchantability
    • Implied Warranty of Fitness
    • Excluding and Modifying Warranties
    8. Remedies
    • Seller's Remedies
    • Seller's Alternative Remedies
    • Buyer's Remedies for Nondelivery
    • Buyer's Remedies for Accepted Goods
    • Buyer's Incidental and Consequential Damages