Printable Format84-2-710. Seller's incidental damages. Incidental damages to an aggrieved seller include any commercially reasonable charges, expenses or commissions incurred in stopping delivery, in the transportation, care and custody of goods after the buyer's breach, in connection with return or resale of the goods or otherwise resulting from the breach.
History: L. 1965, ch. 564, § 106; January 1, 1966.
KANSAS COMMENT, 1996
1. This section lists the most common types of incidental damages incurred by sellers, but the list is not exclusive. The seller can recover all commercially reasonable expenditures it made. Attorney's fees incurred in bringing the breach of contract action, however, are not recoverable as incidental damages under this section.
2. The sections on seller's remedies, unlike those on buyer's remedies, do not by their terms permit the seller to recover consequential damages. See, e.g., 84-2-706, 84-2-708, & 84-2-709. Nor does this section contain a definition of consequential damages for the seller. Compare 84-2-715 (buyer's incidental and consequential damages). It is unusual for sellers to suffer consequential damages, but such cases do occur. Courts generally have refused to allow sellers in those cases to recover consequential damages, based on the lack of statutory authority. See, e.g., Nobs Chem. U.S.A., Inc. v. Koppers Co., 616 F.2d 212 (5th Cir. 1980); see also 84-1-106 ("neither consequential or special nor penal damages may be had except as specifically provided in this act or by other rule or law"). But see James J. White & Robert S. Summers, 1 Uniform Commercial Code § 7-16(b), at 414 (4th ed. Practitioner Treatise Series 1995) (arguing that seller should be able to recover consequential damages under common law and section 84-1-103).
CASE ANNOTATIONS
1. Whether measure of damages where buyer failed to make payment is contract price less market value of goods examined. Smyers v. Quartz Works Corp., 880 F.Supp. 1425, 1434 (1995).
2. Provision for Kansas law to govern does not allow recovery of attorney fees absent contractual provision for such. Boyd Rosene & Associates v. Kansas Mun. Gas Agency, 174 F.3d 1115, 1127 (1999).