Iowa Code

Iowa Code § 554.2704 (2026)

Seller’s right to identify goods to the contract notwithstanding breach or to salvage unfinished goods

✓ current as of July 2026
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1. An aggrieved seller under section 554.2703 may:

a. identify to the contract conforming goods not already identified if at the time the seller learned of the breach they are in the seller’s possession or control;

b. treat as the subject of resale goods which have demonstrably been intended for the particular contract even though those goods are unfinished.

2. Where the goods are unfinished an aggrieved seller may in the exercise of reasonable commercial judgment for the purposes of avoiding loss and of effective realization either complete the manufacture and wholly identify the goods to the contract or cease manufacture and resell for scrap or salvage value or proceed in any other reasonable manner. [C24, 27, 31, 35, 39, §9992, 9993; C46, 50, 54, 58, 62, §554.64, 554.65; C66, 71, 73, 75, 77, 79, 81, §554.2704] 2008 Acts, ch 1032, §74 Referred to in §554.2610, 554.2703 \n

Notes of Decisions
Cited in 1 case, 2018–2018 · leading case: Rexing Quality Eggs v. Rembrandt Enter., Inc., 360 F. Supp. 3d 817 (S.D. Ind. 2018).
Rexing Quality Eggs v. Rembrandt Enter., Inc., 360 F. Supp. 3d 817 (S.D. Ind. 2018). “Iowa Code 554.2704 UCC cmt. 2. The Court may be brief in its assessment of the parties' myriad arguments on damages because Rembrandt falls far short of establishing the amount of its damages as a matter of law.”
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