Michigan Compiled Laws

Mich. Comp. Laws § 440.2706 (2026)

Buyer's wrongful rejection, revocation of acceptance, or nonpayment; resale by seller; recovery of loss; notice to buyer; profit.

✓ current as of July 2026

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UNIFORM COMMERCIAL CODE

Act 174 of 1962

440.2706 Buyer's wrongful rejection, revocation of acceptance, or nonpayment; resale by seller; recovery of loss; notice to buyer; profit.

Sec. 2706.

(1) Under the conditions stated in section 2703 on seller's remedies, the seller may resell the goods concerned or the undelivered balance thereof. Where the resale is made in good faith and in a commercially reasonable manner the seller may recover the difference between the resale price and the contract price together with any incidental damages allowed under the provisions of this article (section 2710), but less expenses saved in consequence of the buyer's breach.

(2) Except as otherwise provided in subsection (3) or unless otherwise agreed resale may be at public or private sale including sale by way of one or more contracts to sell or of identification to an existing contract of the seller. Sale may be as a unit or in parcels and at any time and place and on any terms but every aspect of the sale including the method, manner, time, place and terms must be commercially reasonable. The resale must be reasonably identified as referring to the broken contract, but it is not necessary that the goods be in existence or that any or all of them have been identified to the contract before the breach.

(3) Where the resale is at private sale the seller must give the buyer reasonable notification of his intention to resell.

(4) Where the resale is at public sale

(a) only identified goods can be sold except where there is a recognized market for a public sale of futures in goods of the kind; and

(b) it must be made at a usual place or market for public sale if one is reasonably available and except in the case of goods which are perishable or threaten to decline in value speedily the seller must give the buyer reasonable notice of the time and place of the resale; and

(c) if the goods are not to be within the view of those attending the sale the notification of sale must state the place where the goods are located and provide for their reasonable inspection by prospective bidders; and

(d) the seller may buy.

(5) A purchaser who buys in good faith at a resale takes the goods free of any rights of the original buyer even though the seller fails to comply with one or more of the requirements of this section.

(6) The seller is not accountable to the buyer for any profit made on any resale. A person in the position of a seller (section 2707) or a buyer who has rightfully rejected or justifiably revoked acceptance must account for any excess over the amount of his security interest, as hereinafter defined (subsection (3) of section 2711).

History: 1962, Act 174, Eff. Jan. 1, 1964

Notes of Decisions

Cited in 4 cases, 1970–1996 · leading case: Firwood Mfg. Co., Inc. v. Gen. Tire, Inc., 96 F.3d 163 (6th Cir. 1996).

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Firwood Mfg. Co., Inc. v. Gen. Tire, Inc., 96 F.3d 163 (6th Cir. 1996). · cites it 4× “General Tire argues that it was entitled to judgment as a matter of law because Firwood did not prove its damages under Mich. Comp. Laws Ann. § 440.2706 (West 1994); that the District Court should have granted a new trial because the jury was given an erroneous and prejudicial…”

Uganski v. Little Giant Crane & Shovel, Inc., 192 N.W.2d 580 (Mich. Ct. App. 1971). · cites it 4× “” MCLA §440.2706 (Stat Ann 1964 Rev § 19.2706) provides in part: “(2) Except as otherwise provided in subsection (3) or unless otherwise agreed resale may be at public or private sale including sale by way of one or more contracts to sell or of identification to an existing…”

Colonial Dodge, Inc. v. Miller, 328 N.W.2d 678 (Mich. Ct. App. 1982). · cites it 2× “The applicable remedies to plaintiff where delivery and acceptance has been made where the buyer subsequently revokes acceptance are resale and recovery of damages (provided in MCL 440.2706) or an action for price and damages (MCL 440.”

Detroit Power Screwdriver v. Ladney, 181 N.W.2d 828 (Mich. Ct. App. 1970). · cites it 2× “See, also, MCLA § 440.2706, Practice Commentary, by Roy L.”

— Mich. Comp. Laws § 440.2706(4) — 1 case

Uganski v. Little Giant Crane & Shovel, Inc., 192 N.W.2d 580 (Mich. Ct. App. 1971). “” MCLA §440.2706 (Stat Ann 1964 Rev § 19.2706) provides in part: “(2) Except as otherwise provided in subsection (3) or unless otherwise agreed resale may be at public or private sale including sale by way of one or more contracts to sell or of identification to an existing…”

Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.