Gadgets Galore, a merchant-seller in Georgia, had an oral contract to sell goods to WidgetsRUS, a merchant-buyer in Illinois for $100,000. Two days after contracting, Gadgets Galore sends a...

Gadgets Galore, a merchant-seller in Georgia, had an oral contract to sell goods to WidgetsRUS, a merchant-buyer in Illinois for $100,000. Two days after contracting, Gadgets Galore sends a sufficient written confirmation to WidgetsRUS of the agreed-upon transaction. WidgetsRUS, who has reason to know the contents of the written confirmation, fails to object to the contents of the confirmation immediately. Two weeks after receiving the written confirmation, WidgetsRUS receives a delivery of the goods from Gadgets Galore. WidgetsRUS immediately sends an objection to the confirmation to Gadgets Galore. Describe the remedies available to Gadgets Galore under the Uniform Commercial Code?

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farouk23 | College Teacher | (Level 1) Associate Educator

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What occurred between Gadgets Galore and WidgetsRUS could be considered a breach of contract under the Uniform Commercial Code. Since there was both a verbal agreement and a written agreement that WidgetsRUS failed to respond to in a timely manner. Under UCC terms, Gadgets Galore would be entitled to financial remedies commensurate to the losses incurred due to the contract breach. Some of the remedies that could be pursued by Gadgets Galore are:

  1. Cancellation of the contract
  2. Resell the goods and recover damages
  3. Recover costs equal to the variation between the market price of the goods and the contract price
  4. There are other potential remedies available but since the goods have already been delivered they may not be viable options.

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