§ 336.2-704 — Seller's Right to Identify Goods to the Contract Notwithstanding Breach or to Salvage Unfinished Goods
Plain-Language Summary
When the buyer breaches, the seller can identify conforming goods to the contract and either resell them or hold them for the buyer. The seller can also finish manufacturing unfinished goods if commercially reasonable, or sell unfinished goods for scrap.
336.2-704 SELLER’S RIGHT TO IDENTIFY GOODS TO THE CONTRACT NOTWITHSTANDING BREACH OR TO SALVAGE UNFINISHED GOODS.
(1) An aggrieved seller under the preceding section may
(a) identify to the contract conforming goods not already identified if the aggrieved seller possessed or controlled the goods at the time of learning of the breach;
(b) treat as the subject of resale goods which have demonstrably been intended for the particular contract even though those goods are unfinished.
(2) Where the goods are unfinished an aggrieved seller may in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization either complete the manufacture and wholly identify the goods to the contract or cease manufacture and resell for scrap or salvage value or proceed in any other reasonable manner.
History:
1965 c 811 s 336.2-704; 1986 c 444
History: History: 1965 c 811 s 336.2-704; 1986 c 444