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Seller's Alternative Remedies

Learn the circumstances in which the seller may recover lost profits from the buyer and the rules governing whether a seller can maintain an action for the contractual price.


In another lesson, we learned about the seller’s principal remedy and the default measure of damages under Article 2. However, in certain circumstances, those remedies may be inadequate to put the seller in as good a position as the buyer’s performance would have. In those cases, Article 2 may allow the seller to recover as damages either the seller’s lost profits or the contract price.

I. Recovery of Lost Profits

In appropriate cases, Article 2 allows the seller to recover the profit the...