MoVu Co. contracted to buy 400 round plastic bowls from Continental Industries, then anticipatorily breached the contract when their plans changed. Continental may proceed to identify to the contract conforming goods in its possession so that it can exercise the remedy of resale of the goods.

Question

MoVu Co. contracted to buy 400 round plastic bowls from Continental Industries, then anticipatorily breached the contract when their plans changed. Continental may proceed to identify to the contract conforming goods in its possession so that it can exercise the remedy of resale of the goods.

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), when a buyer breaches a contract before the seller has delivered the goods, the seller may identify conforming goods to the contract as a means to preserve the right to resell the goods and potentially recover damages from the buyer. This action allows the seller to mitigate losses by selling the goods to another buyer.

MoVu Co Contracted to Buy 400 Round Plastic Bowls from Continental