Tennessee Code Annotated
Tenn. Code Ann. § 47-2-706 (2026)
Seller's resale including contract for resale
✓ current as of May 2026
- (1) Under the conditions stated in § 47-2-703 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 chapter (§ 47-2-710), 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 (1) 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 (§ 47-2-707) 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 (§ 47-2-711(3)).
Acts 1963, ch. 81, § 1 (2-706).
Notes of Decisions
Cited in 3
cases, 1984–2005 · leading case: Hudson v. Town & Country True Value Hardware, Inc., 666 S.W.2d 51 (Tenn. 1984).
Hudson v. Town & Country True Value Hardware, Inc., 666 S.W.2d 51 (Tenn. 1984). “and its mandatory pre-requisites provided in T.C.A. § 47-2-706 to goods, as the seller's remedy for that portion of the contract, and apply a different measure of damages to non-goods.”
Oaks v. Bank One Corp., 126 F. App'x 689 (6th Cir. 2005). “Compare Tenn.Code Ann. § 47-2-706 (delineating a seller’s right to dispose of goods) with TenmCode Ann.”
Conister Trust v. Boating Corp. of Am. & Villas-Afloat (Tenn. Ct. App. 1999). “§ 47-2-706(1).14 According to the evidence, BCA calculated its damages for each boat in accordance with the statute, and Conister does not dispute these calculations.”
— Tenn. Code Ann. § 47-2-706(1) — 1 case
Conister Trust v. Boating Corp. of Am. & Villas-Afloat (Tenn. Ct. App. 1999). “§ 47-2-706(1).14 According to the evidence, BCA calculated its damages for each boat in accordance with the statute, and Conister does not dispute these calculations.”
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