Pursuant to the Uniform Commercial Code, sellers of goods have certain rights upon a buyer’s default such as:
- The right to resell and recover damages;
- the right to recover damages for non-acceptance of the goods; and
- the right to cancel the contract of sale.
In choosing the method to determine the extent of damages, it is within seller’s discretion whether to adopt the resale method or not. However, the resale method is a prerequisite to vendor’s right to maintain an action against the vendee to recoup his/her loss, where the terms of sale expressly provide for such a contingency by authorizing resale of the property at the vendee’s risk in case of the latter’s default[i]. Moreover, the Uniform Land Transactions Act provides that the seller may resell and recover damages, or recover damages for non-acceptance or repudiation, or recover the contract price upon a buyer’s:
- wrongful rejection of real estate,
- failure to make a payment due, or
- repudiation of a substantial part of the contract.
[i] Webster & Ford v. Hoban, 11 U.S. 399 (U.S. 1813)