Colorado Code
Part 7 - Remedies
§ 4-2-706. Seller's Resale Including Contract for Resale

Source: L. 65: p. 1336, § 1. C.R.S. 1963: § 155-2-706.
Prior Uniform Statutory Provision: Section 60, Uniform Sales Act.
Changes: Rewritten.
Purposes of Changes: To simplify the prior statutory provision and to make it clear that:

Under this Article the seller resells by authority of law, in his own behalf, for his own benefit and for the purpose of fixing his damages. The theory of a seller's agency is thus rejected.
The distinction drawn by some courts between cases where the title had not passed to the buyer and the seller had resold as owner, and cases where the title had passed and the seller had resold by virtue of his lien on the goods, is rejected.
On the question of the place for resale, subsection (2) goes to the ultimate test, the commercial reasonableness of the seller's choice as to the place for an advantageous resale. This Article rejects the theory that the seller is required to resell at the agreed place for delivery and that a resale elsewhere can be permitted only in exceptional cases.
Subsection (4)(b) requires that the seller give the buyer reasonable notice of the time and place of a public resale so that he may have an opportunity to bid or to secure the attendance of other bidders. An exception is made in the case of goods "which are perishable or threaten to decline speedily in value."
Paragraph (a) of subsection (4) qualifies the last sentence of subsection (2) with respect to resales of unidentified and future goods at public sale. If conforming goods are in existence the seller may identify them to the contract after the buyer's breach and then resell them at public sale. If the goods have not been identified, however, he may resell them at public sale only as "future" goods and only where there is a recognized market for public sale of futures in goods of the kind.
The provisions of paragraph (c) of subsection (4) are intended to permit intelligent bidding.
The provision of paragraph (d) of subsection (4) permitting the seller to bid and, of course, to become the purchaser, benefits the original buyer by tending to increase the resale price and thus decreasing the damages he will have to pay.
Cross References:
Point 1: Sections 4-2-610, 4-2-702 and 4-2-703.
Point 2: Section 4-1-201.
Point 3: Sections 4-2-708 and 4-2-710.
Point 4: Section 4-2-328.
Point 8: Section 4-2-104.
Point 9: Section 4-2-710.
Point 11: Sections 4-2-401, 4-2-707 and 4-2-711(3).
Definitional Cross References:
"Buyer". Section 4-2-103.
"Contract". Section 4-1-201.
"Contract for sale". Section 4-2-106.
"Good faith". Section 4-2-103.
"Goods". Section 4-2-105.
"Merchant". Section 4-2-104.
"Notification". Section 4-1-201.
"Person in position of seller". Section 4-2-707.
"Purchase". Section 4-1-201.
"Rights". Section 4-1-201.
"Sale". Section 4-2-106.
"Security interest". Section 4-1-201.
"Seller". Section 4-2-103.