Page:United States Statutes at Large Volume 77.djvu/697

 77 STAT. ]

PUBLIC LAW 88-243-DEC. 30, 1963

§28:2—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 inay (a) identify to the contract conforming gcKxds not already identified if at the time he learned of the breach they are in his possession or control; (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 aggrieve<l seller may in the exercise of reasonjible 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. §28:2—705. Seller's stoppage of delivery in transit or otherwise (1) The seller may stop delivery of goods in the possession of a carrier or other bailee when he discovers the buyer to be insolvent (section 28:2—702) and may stop delivery of carload, truckload, planeload or larger shipments of express or freight when the buyer lepudiates or fails to make a payment due before delivery or if for any other reason the seller has a right to withhold or reclaim the goods. (2) As against such buyer the seller may stop delivery until (a) receipt of the goods by the buyer; or (b) acknowledgment to the buyer by any bailee of the goods except a carrier that the bailee holds the goods for the buyer; or (c) such acknowledgment to the buyer by a carrier by reshipment or as warehouseman; or (d) negotiation to the buyer of any negotiable doc-ument of title covering the goods. (H)(a) To stop delivery the seller must so notify as to enable I lie badee by reasonable diligence to prevent delivery of the ^oods. (b) After such notification the bailee must hold and deliver the goods according to the directions of the seller but the seller is liable to the bailee for any ensuing charges or damages. (c) If a negotial)le document of title has been issued for goods the bailee is not obliged to obej* a notification to stop until surrender of the document. (d) A carrier who has issued a non-negotiable bill of lading is not obliged to obey a notification to stop received from a person other than the consignor. §28:2—706. Seller's resale including contract for resale (1) Under the conditions stated in section 28:2—703 on seller's remedies, the seller may resell the goods concerned or the undelivered balance thereof. Where the resale is made in good faith and hi a commercially reasonable manner the seller may recover the difference between the resale price and the contract price together with any incidental damages allowed under the provisions of this article (section 28:2—710), but less expenses saved in consequence of the buyer's breach. (2) Except as otherwise provided in subsection (3) or unless otherwise agreed resale may be at public or private sale including sale by way of one or more contracts to sell or of identification to an existing contract of the seller. Sale may be as a unit or in parcels and at any time and place and on any terms but every aspect of the sale including the method, manner, time, place and terms must be commercially reasonable. The resale must be reasonably identified as referring to the broken contract, but it is not necessary that the

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