§ 25-2-706. Seller's resale including contract for resale. - North Carolina Statutes

§25‑2‑706.  Seller's resale including contract for resale.

(1)        Under theconditions stated in G.S. 25‑2‑703 on seller's remedies, the sellermay resell the goods concerned or the undelivered balance thereof. Where theresale is made in good faith and in a commercially reasonable manner the sellermay recover the difference between the resale price and the contract pricetogether with any incidental damages allowed under the provisions of thisarticle (G.S. 25‑2‑710), but less expenses saved in consequence ofthe buyer's breach.

(2)        Except as otherwiseprovided in subsection (3) or unless otherwise agreed resale may be at publicor private sale including sale by way of one or more contracts to sell or ofidentification to an existing contract of the seller. Sale may be as a unit orin parcels and at any time and place and on any terms but every aspect of thesale including the method, manner, time, place and terms must be commerciallyreasonable. The resale must be reasonably identified as referring to the brokencontract, but it is not necessary that the goods be in existence or that any orall of them have been identified to the contract before the breach.

(3)        Where the resale isat private sale the seller must give the buyer reasonable notification of his intentionto resell.

(4)        Where the resale isat public sale

(a)        only identifiedgoods can be sold except where there is a recognized market for a public saleof futures in goods of the kind; and

(b)        it must be made at ausual place or market for public sale if one is reasonably available and exceptin the case of goods which are perishable or threaten to decline in valuespeedily the seller must give the buyer reasonable notice of the time and placeof the resale; and

(c)        if the goods are notto be within the view of those attending the sale the notification of sale muststate the place where the goods are located and provide for their reasonableinspection by prospective bidders; and

(d)        the seller may buy.

(5)        A purchaser whobuys in good faith at a resale takes the goods  free of any rights of theoriginal buyer even though the seller fails to comply with one or more of therequirements of this section.

(6)        The seller is notaccountable to the buyer for any profit made on any resale. A person in theposition of a seller (G.S. 25‑2‑707) or a buyer who has rightfullyrejected or justifiably revoked acceptance must account for any excess over theamount of his security interest, as hereinafter defined (subsection (3) of G.S.25‑2‑711). (1965, c. 700, s. 1.)