Okla. Stat. tit. 12A § 2-713

Current through Laws 2024, c. 453.

Section 2-713 - Buyer's Damages for Nondelivery or Repudiation

(1) Subject to the provisions of this article with respect to proof of market price (Section 2-723), the measure of damages for nondelivery or repudiation by the seller is the difference between the market price at the time when the buyer learned of the breach and the contract price together with any incidental and consequential damages provided in this article (Section 2-715), but less expenses saved in consequence of the seller's breach.

(2) Market price is to be determined as of the place for tender or, in cases of rejection after arrival or revocation of acceptance, as of the place of arrival.

Okla. Stat. tit. 12A, § 2-713

Laws 1961, p. 99, § 2-713.

Oklahoma Code Comment

Prior Statutory Provisions: 23 O.S. § 30.

Text and derivation of prior provisions, see Appendix at end of this title

Comment:

(1) As to the measure of damages, i. e. contract price less market value, see discussion in Section 2-712 above. The second problem dealt with is that of the time at which damages are determined. The Commercial Code provides "at the time when the buyer learned of the breach." 23 O.S. § 92 provides " and at such time after the breach of duty upon which his right to damages is founded as would suffice, with reasonable diligence, for him to make such a purchase." The Commercial Code, therefore, is more restrictive: it affixes damages at the time the buyer learned of the breach and does not afford additional time to obtain the goods. 23 O.S. § 92 is therefore undoubtedly superseded by the Commercial Code to the extent that it is inconsistent with this section.

This section must be read in conjunction with Section 2-712 on "cover." That section permits the buyer to cover after the breach and without unreasonable delay. Therefore, the two sections together, give the buyer an adequate remedy. Let us illustrate: The purchaser entered into a contract to buy a number of units at $10 per unit. The seller repudiated before delivery date, and at that time the market price was $12 per unit. Without more being shown, the buyer's damages are $2 per unit under Section 2-713 . [See also Sec. 2-723 ] The buyer sought other goods on the open market, and by the time he was able to obtain them, the price had increased to $14 per unit. Under Section 2-712 his damages are $4 per unit. Suppose, however, the same figures, except that when the buyer was finally able to obtain the goods the market price had again declined, and was now back to $ 10 per unit, the original contract price. Assumedly, the buyer could elect to recover damages under Section 2-713, which would be $2 per unit.

(2) 23 O.S. § 92 provides at "the place where the property ought to have been put into his possession." The language seems to be equivalent to the Commercial Code provision.