A lost-volume seller refers to a seller who sells goods and experiences a breach of contract by the buyer. Instead of suffering a loss in the sale, the seller resells the goods to another buyer who would have purchased them regardless. As a result, the seller can seek compensation for the lost profits caused by the original buyer’s breach, rather than only receiving the difference between the contract price and market price.
A lost-volume seller refers to a seller who resells goods to a different buyer after the original buyer has violated a sales contract. The goods sold to the second buyer would have been sold to them even if the original buyer had not breached the contract. For instance, if a car dealer sells a car to a buyer who later breaches the contract, the dealer can sell the same car to another buyer from their inventory. In this scenario, the dealer is considered a lost-volume seller and is eligible to receive lost profits as damages from the original buyer’s breach. According to the Uniform Commercial Code (UCC) ยง 2-708(2), a lost-volume seller is entitled to receive lost profits as damages, rather than the contract price minus the market price, from the original buyer’s breach.
A lost-volume seller is a term used in contract law to describe a situation where a seller suffers a loss of profit due to a buyer’s breach of contract. The seller is entitled to recover the lost profit as damages.
To prove lost profit, a lost-volume seller must demonstrate that they had the ability and intention to sell the goods to another buyer at the same price and quantity as the breached contract. They may need to provide evidence such as sales records, market demand, and potential buyers’ willingness to purchase.
No, a lost-volume seller cannot recover both the lost profit and the resale price of the goods. They are only entitled to recover the lost profit as damages, as the resale price would result in double recovery.
If the lost-volume seller cannot find another buyer for the goods, they may still be entitled to recover their lost profit. However, they must demonstrate that there was a reasonable expectation of finding another buyer and that the breach of contract caused the loss.
Yes, a lost-volume seller may be able to recover other damages apart from lost profit if they can prove that they suffered additional losses directly caused by the buyer’s breach of contract. These damages may include storage costs, transportation expenses, or any other reasonable costs incurred due to the breach.
Yes, a lost-volume seller can seek specific performance, which means asking the court to order the buyer to fulfill their contractual obligations by purchasing the goods. However, specific performance is not always granted, and the court may choose to award monetary damages instead.
The time limit for a lost-volume seller to claim their lost profit depends on the applicable statute of limitations. It is important for the seller to consult with an attorney to determine the specific time limit in their jurisdiction.
A lost-volume seller has a duty to mitigate their damages, which means taking reasonable steps to minimize their losses. If the seller fails to mitigate their damages, their claim for lost profit may be reduced or denied.
If the breach of contract was caused by the lost-volume seller’s own negligence, their claim for lost profit may be affected. The court will consider the extent of the seller’s negligence and may reduce the damages accordingly.
If the buyer’s breach of contract was due to unforeseen circumstances or force majeure events, the lost-volume seller may face challenges in claiming lost profit. The court will consider the specific circumstances and contractual provisions to determine the seller’s entitlement to damages.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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