S. 2-708(1), 2-723(2) - seller's measure of damages for breach by buyer - reasonable substitute provided by the court
Article Abstract:
The 8th Circuit decided the seller's measure of damages for a buyer's breach in Northwest Airlines, Inc. v. Flight Trails. The price was initially set by subtracting unpaid contract amounts from the market price, with other incidental factors. However, since the market price was unavailable, the court provided a reasonable substitute under section 723(2) of UCC Article Two. Special damages were invoked for lost profits under section 708(1) of UCC Article Two.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1995
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S. 5-102, 5-115 - parties' choice of uniform customs and practice (UCP) in lieu of U.C.C. article 5; issuer's liability for face amount of letter under 'UCP' UCC mitigation of damages rule inapplicable
Article Abstract:
The New York Supreme Court has decided that a bank retains liability for a letter of credit in Ross Bicycles, Inc. v. Citibank. The beneficiary anticipated that the letter would be revoked, and sold contractual goods to an alternative buyer, but this did not remove the bank's liability. The Court made use of a parties' choice of uniform customs and practice under New York's subsection 4 of UCC Article 5 Section 102.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1995
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S. 2-714, 2-715 - buyer's measure of damages for sale of diseased fruit trees - lost profits allowed
Article Abstract:
A California appellate court decided the buyer's measure of damages in Serian Brothers v. Agri-Sun Nursery. Lost profits damages were permitted under section 714 of UCC Article 2, involving the purchase of diseased fruit trees. Section 715 of UCC Article 2 was invoked to recognize that acceptability for a recognized purpose had been violated, and this also permitted lost profits recovery.
Publication Name: Uniform Commercial Code Law Journal
Subject: Law
ISSN: 0041-672X
Year: 1995
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