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Illinois Compiled Statutes
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COMMERCIAL CODE (810 ILCS 5/) Uniform Commercial Code. 810 ILCS 5/Art. 2 Pt. 7
(810 ILCS 5/Art. 2 Pt. 7 heading)
PART 7.
REMEDIES
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810 ILCS 5/2-701
(810 ILCS 5/2-701) (from Ch. 26, par. 2-701)
Sec. 2-701.
Remedies for breach of collateral contracts not impaired.
Remedies for breach of any obligation or promise collateral or ancillary
to a contract for sale are not impaired by the provisions of this Article.
(Source: Laws 1961, p. 2101.)
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810 ILCS 5/2-702
(810 ILCS 5/2-702) (from Ch. 26, par. 2-702)
Sec. 2-702.
Seller's remedies on discovery of buyer's insolvency.
(1) Where the seller discovers the buyer to be insolvent he may refuse
delivery except for cash including payment for all goods theretofore
delivered under the contract, and stop delivery under this Article (Section
2-705).
(2) Where the seller discovers that the buyer has received goods on
credit while insolvent he may reclaim the goods upon demand made within 10
days after the receipt, but if misrepresentation of solvency has been made
to the particular seller in writing within 3 months before delivery the 10
day limitation does not apply. Except as provided in this subsection the
seller may not base a right to reclaim goods on the buyer's fraudulent or
innocent misrepresentation of solvency or of intent to pay.
(3) The seller's right to reclaim under subsection (2) is subject to the
rights of a buyer in ordinary course or other good faith purchaser under
this Article (Section 2-403). Successful reclamation of goods excludes all
other remedies with respect to them.
(Source: Laws 1961, 1st SS., p. 7 .)
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810 ILCS 5/2-703
(810 ILCS 5/2-703) (from Ch. 26, par. 2-703)
Sec. 2-703.
Seller's remedies in general.
Where the buyer wrongfully rejects or revokes acceptance of goods or
fails to make a payment due on or before delivery or repudiates with
respect to a part or the whole, then with respect to any goods directly
affected and, if the breach is of the whole contract (Section 2-612), then
also with respect to the whole undelivered balance, the aggrieved seller
may
(a) withhold delivery of such goods;
(b) stop delivery by any bailee as hereafter provided | |
(c) proceed under the next section respecting goods
| | still unidentified to the contract;
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(d) resell and recover damages as hereafter provided
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(e) recover damages for non-acceptance (Section
| | 2-708) or in a proper case the price (Section 2-709);
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(f) cancel.
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-704
(810 ILCS 5/2-704) (from Ch. 26, par. 2-704)
Sec. 2-704.
Seller's right to identify goods to the contract notwithstanding breach or
to salvage unfinished goods.
(1) An aggrieved seller under the preceding section may
(a) identify to the contract conforming goods not | | already identified if at the time he learned of the breach they are in his possession or control;
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(b) treat as the subject of resale goods which have
| | demonstrably been intended for the particular contract even though those goods are unfinished.
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(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.
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-705
(810 ILCS 5/2-705) (from Ch. 26, par. 2-705)
Sec. 2-705. Seller's stoppage of delivery in transit or otherwise.
(1) The seller may stop delivery of goods in the possession of a carrier
or other bailee when he discovers the buyer to be insolvent (Section 2-702)
and may stop delivery of carload, truckload, planeload or larger shipments
of express or freight when the buyer repudiates or fails to make a payment
due before delivery or if for any other reason the seller has a right to
withhold or reclaim the goods.
(2) As against such buyer the seller may stop delivery until
(a) receipt of the goods by the buyer; or
(b) acknowledgment to the buyer by any bailee of the | | goods except a carrier that the bailee holds the goods for the buyer; or
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(c) such acknowledgment to the buyer by a carrier by
| | reshipment or as a warehouse; or
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(d) negotiation to the buyer of any negotiable
| | document of title covering the goods.
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(3)(a) To stop delivery the seller must so notify as to enable the
bailee by reasonable diligence to prevent delivery of the goods.
(b) After such notification the bailee must hold and deliver the
goods according to the directions of the seller but the seller is liable to
the bailee for any ensuing charges or damages.
(c) If a negotiable document of title has been issued for goods the
bailee is not obliged to obey a notification to stop until surrender of possession or control of the
document.
(d) A carrier who has issued a non-negotiable bill of lading is not
obliged to obey a notification to stop received from a person other than
the consignor.
(Source: P.A. 95-895, eff. 1-1-09.)
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810 ILCS 5/2-706
(810 ILCS 5/2-706) (from Ch. 26, par. 2-706)
Sec. 2-706.
Seller's resale including contract for resale.
(1) Under the conditions stated in Section 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 Article (Section 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
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(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
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(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
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(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 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 (subsection (3) of Section 2-711.
(Source: Laws 1961, 1st SS., p. 7 .)
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810 ILCS 5/2-707
(810 ILCS 5/2-707) (from Ch. 26, par. 2-707)
Sec. 2-707.
"Person in the position of a seller".
(1) A "person in the position of a seller" includes as against a
principal an agent who has paid or become responsible for the price of
goods on behalf of his principal or anyone who otherwise holds a security
interest or other right in goods similar to that of a seller.
(2) A person in the position of a seller may as provided in this Article
withhold or stop delivery (Section 2-705) and resell (Section 2-706) and
recover incidental damages (Section 2-710).
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-708
(810 ILCS 5/2-708) (from Ch. 26, par. 2-708)
Sec. 2-708.
Seller's damages for non-acceptance or repudiation.
(1) Subject to subsection (2) and to the provisions of this Article with
respect to proof of market price (Section 2-723), the measure of damages
for non-acceptance or repudiation by the buyer is the difference between
the market price at the time and place for tender and the unpaid contract
price together with any incidental damages provided in this Article
(Section 2-710), but less expenses saved in consequence of the buyer's
breach.
(2) If the measure of damages provided in subsection (1) is inadequate
to put the seller in as good a position as performance would have done then
the measure of damages is the profit (including reasonable overhead) which
the seller would have made from full performance by the buyer, together
with any incidental damages provided in this Article (Section 2-710), due
allowance for costs reasonably incurred and due credit for payments or
proceeds of resale.
(Source: Laws 1961, 1st SS., p. 7 .)
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810 ILCS 5/2-709
(810 ILCS 5/2-709) (from Ch. 26, par. 2-709)
Sec. 2-709.
Action for the price.
(1) When the buyer fails to pay the price as it becomes due the seller
may recover, together with any incidental damages under the next Section,
the price
(a) of goods accepted or of conforming goods lost or | | damaged within a commercially reasonable time after risk of their loss has passed to the buyer; and
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(b) of goods identified to the contract if the seller
| | is unable after reasonable effort to resell them at a reasonable price or the circumstances reasonably indicate that such effort will be unavailing.
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(2) Where the seller sues for the price he must hold for the buyer any
goods which have been identified to the contract and are still in his
control except that if resale becomes possible he may resell them at any
time prior to the collection of the judgment. The net proceeds of any such
resale must be credited to the buyer and payment of the judgment entitles
him to any goods not resold.
(3) After the buyer has wrongfully rejected or revoked acceptance of the
goods or has failed to make a payment due or has repudiated (Section 2-610),
a seller who is held not entitled to the price under this Section
shall nevertheless be awarded damages for non-acceptance under the
preceding Section.
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-710
(810 ILCS 5/2-710) (from Ch. 26, par. 2-710)
Sec. 2-710.
Seller's incidental damages.
Incidental damages to an aggrieved seller include any commercially
reasonable charges, expenses or commissions incurred in stopping delivery,
in the transportation, care and custody of goods after the buyer's breach,
in connection with return or resale of the goods or otherwise resulting
from the breach.
(Source: Laws 1961, p. 2101.)
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810 ILCS 5/2-711
(810 ILCS 5/2-711) (from Ch. 26, par. 2-711)
Sec. 2-711.
Buyer's remedies in general; buyer's security interest in
rejected goods.
(1) Where the seller fails to make delivery or repudiates or the buyer
rightfully rejects or justifiably revokes acceptance then with respect to
any goods involved, and with respect to the whole if the breach goes to the
whole contract (Section 2-612), the buyer may cancel and whether or not he
has done so may in addition to recovering so much of the price as has been
paid
(a) "cover" and have damages under the next section | | as to all the goods affected whether or not they have been identified to the contract; or
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(b) recover damages for non-delivery as provided in
| | this Article (Section 2-713).
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(2) Where the seller fails to deliver or repudiates the buyer may also
(a) if the goods have been identified recover them as
| | provided in this Article (Section 2-502); or
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(b) in a proper case obtain specific performance or
| | replevy the goods as provided in this Article (Section 2-716).
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(3) On rightful rejection or justifiable revocation of acceptance a
buyer has a security interest in goods in his possession or control for any
payments made on their price and any expenses reasonably incurred in their
inspection, receipt, transportation, care and custody and may hold such
goods and resell them in like manner as an aggrieved seller (Section 2-706).
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-712
(810 ILCS 5/2-712) (from Ch. 26, par. 2-712)
Sec. 2-712.
"Cover"; buyer's procurement of substitute goods.
(1) After a breach within the preceding section the buyer may "cover" by
making in good faith and without unreasonable delay any reasonable purchase
of or contract to purchase goods in substitution for those due from the
seller.
(2) The buyer may recover from the seller as damages the difference
between the cost of cover and the contract price together with any
incidental or consequential damages as hereinafter defined (Section 2-715), but
less expenses saved in consequence of the seller's breach.
(3) Failure of the buyer to effect cover within this Section does not
bar him from any other remedy.
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-713
(810 ILCS 5/2-713) (from Ch. 26, par. 2-713)
Sec. 2-713.
Buyer's damages for non-delivery or repudiation.
(1) Subject to the provisions of this Article with respect to proof of
market price (Section 2-723), the measure of damages for non-delivery or
repudiation by the seller is the difference between the market price at the
time when the buyer learned of the breach and the contract price together
with any incidental and consequential damages provided in this Article
(Section 2-715), but less expenses saved in consequence of the seller's
breach.
(2) Market price is to be determined as of the place for tender or, in
cases of rejection after arrival or revocation of acceptance as of the
place of arrival.
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-714
(810 ILCS 5/2-714) (from Ch. 26, par. 2-714)
Sec. 2-714.
Buyer's damages for breach in regard to accepted goods.
(1) Where the buyer has accepted goods and given notification
(subsection (3) of Section 2-607 he may recover as damages for any
non-conformity of tender the loss resulting in the ordinary course of
events from the seller's breach as determined in any manner which is
reasonable.
(2) The measure of damages for breach of warranty is the difference at
the time and place of acceptance between the value of the goods accepted
and the value they would have had if they had been as warranted, unless
special circumstances show proximate damages of a different amount.
(3) In a proper case any incidental and consequential damages under the
next section may also be recovered.
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-715
(810 ILCS 5/2-715) (from Ch. 26, par. 2-715)
Sec. 2-715.
Buyer's incidental and consequential damages.
(1) Incidental damages resulting from the seller's breach include
expenses reasonably incurred in inspection, receipt, transportation and
care and custody of goods rightfully rejected, any commercially reasonable
charges, expenses or commissions in connection with effecting cover and any
other reasonable expense incident to the delay or other breach.
(2) Consequential damages resulting from the seller's breach include
(a) any loss resulting from general or particular | | requirements and needs of which the seller at the time of contracting had reason to know and which could not reasonably be prevented by cover or otherwise; and
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(b) injury to person or property proximately
| | resulting from any breach of warranty.
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(Source: Laws 1961, 1st S.S., p. 7 .)
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810 ILCS 5/2-716
(810 ILCS 5/2-716) (from Ch. 26, par. 2-716)
Sec. 2-716.
Buyer's right to specific performance or replevin.
(1) Specific performance may be ordered where the goods are unique or in
other proper circumstances.
(2) The judgment for specific performance may include such terms and
conditions as to payment of the price, damages, or other relief as the
court may deem just.
(3) The buyer has a right of replevin for goods identified to the
contract if after reasonable effort he is unable to effect cover for such
goods or the circumstances reasonably indicate that such effort will be
unavailing or if the goods have been shipped under reservation and
satisfaction of the security interest in them has been made or tendered.
In the case of goods bought for personal, family, or household
purposes, the buyer's right of replevin vests upon acquisition of a special
property, even if the seller had not then repudiated or failed to deliver.
(Source: P.A. 91-893, eff. 7-1-01.)
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810 ILCS 5/2-717
(810 ILCS 5/2-717) (from Ch. 26, par. 2-717)
Sec. 2-717.
Deduction of damages from the price.
The buyer on notifying the seller of his intention to do so may deduct
all or any part of the damages resulting from any breach of the contract
from any part of the price still due under the same contract.
(Source: Laws 1961, p. 2101.)
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810 ILCS 5/2-718
(810 ILCS 5/2-718) (from Ch. 26, par. 2-718)
Sec. 2-718.
Liquidation or limitation of damages; deposits.
(1) Damages for breach by either party may be liquidated in the
agreement but only at an amount which is reasonable in the light of the
anticipated or actual harm caused by the breach, the difficulties of proof
of loss, and the inconvenience or nonfeasibility of otherwise obtaining an
adequate remedy. A term fixing unreasonably large liquidated damages is
void as a penalty.
(2) Where the seller justifiably withholds delivery of goods because of
the buyer's breach, the buyer is entitled to restitution of any amount by
which the sum of his payments exceeds
(a) the amount to which the seller is entitled by | | virtue of terms liquidating the seller's damages in accordance with subsection (1), or
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(b) in the absence of such terms, 20% of the value of
| | the total performance for which the buyer is obligated under the contract or $500, whichever is smaller.
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(3) The buyer's right to restitution under subsection (2) is subject to
offset to the extent that the seller establishes
(a) a right to recover damages under the provisions
| | of this Article other than subsection (1), and
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(b) the amount or value of any benefits received by
| | the buyer directly or indirectly by reason of the contract.
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(4) Where a seller has received payment in goods their reasonable value
or the proceeds of their resale shall be treated as payments for the
purposes of subsection (2); but if the seller has notice of the buyer's
breach before reselling goods received in part performance, his resale is
subject to the conditions laid down in this Article on resale by an
aggrieved seller (Section 2-706).
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-719
(810 ILCS 5/2-719) (from Ch. 26, par. 2-719)
Sec. 2-719.
Contractual modification or limitation of remedy.
(1) Subject to the provisions of subsections (2) and (3) of this Section
and of the preceding section on liquidation and limitation of damages,
(a) the agreement may provide for remedies in | | addition to or in substitution for those provided in this Article and may limit or alter the measure of damages recoverable under this Article, as by limiting the buyer's remedies to return of the goods and repayment of the price or to repair and replacement of non-conforming goods or parts; and
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(b) resort to a remedy as provided is optional unless
| | the remedy is expressly agreed to be exclusive, in which case it is the sole remedy.
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(2) Where circumstances cause an exclusive or limited remedy to fail of
its essential purpose, remedy may be had as provided in this Act.
(3) Consequential damages may be limited or excluded unless the
limitation or exclusion is unconscionable. Limitation of consequential
damages for injury to the person in the case of consumer goods is prima
facie unconscionable but limitation of damages where the loss is commercial
is not.
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-720
(810 ILCS 5/2-720) (from Ch. 26, par. 2-720)
Sec. 2-720.
Effect of "cancellation" or "recision" on claims for antecedent breach.
Unless the contrary intention clearly appears, expressions of
"cancellation" or "rescission" of the contract or the like shall not be
construed as a renunciation or discharge of any claim in damages for an
antecedent breach.
(Source: Laws 1961, p. 2101.)
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810 ILCS 5/2-721
(810 ILCS 5/2-721) (from Ch. 26, par. 2-721)
Sec. 2-721.
Remedies for fraud.
Remedies for material misrepresentation or fraud include all remedies
available under this Article for non-fraudulent breach. Neither rescission
or a claim for rescission of the contract for sale nor rejection or return
of the goods shall bar or be deemed inconsistent with a claim for damages
or other remedy.
(Source: Laws 1961, p. 2101.)
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810 ILCS 5/2-722
(810 ILCS 5/2-722) (from Ch. 26, par. 2-722)
Sec. 2-722.
Who
can sue third parties for injury to goods.
Where a third party so deals with goods which have been identified to a
contract for sale as to cause actionable injury to a party to that contract
(a) a right of action against the third party is in | | either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods; and if the goods have been destroyed or converted a right of action is also in the party who either bore the risk of loss under the contract for sale or has since the injury assumed that risk as against the other;
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(b) if at the time of the injury the party plaintiff
| | did not bear the risk of loss as against the other party to the contract for sale and there is no arrangement between them for disposition of the recovery, his suit or settlement is, subject to his own interest, as a fiduciary for the other party to the contract.
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(c) either party may with the consent of the other
| | sue for the benefit of whom it may concern.
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(Source: Laws 1961, 1st S.S., p. 7 .)
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810 ILCS 5/2-723
(810 ILCS 5/2-723) (from Ch. 26, par. 2-723)
Sec. 2-723.
Proof of market price: time and place.
(1) If an action based on anticipatory repudiation comes to trial before
the time for performance with respect to some or all of the goods, any
damages based on market price (Section 2-708 and Section 2-713) shall be
determined according to the price of such goods prevailing at the time when
the aggrieved party learned of the repudiation.
(2) If evidence of a price prevailing at the times or places described
in this Article is not readily available the price prevailing within any
reasonable time before or after the time described or at any other place
which in commercial judgment or under usage of trade would serve as a
reasonable substitute for the one described may be used, making any proper
allowance for the cost of transporting the goods to or from such other
place.
(3) Evidence of a relevant price prevailing at a time or place other
than the one described in this Article offered by one party is not
admissible unless and until he has given the other party such notice as the
court finds sufficient to prevent unfair surprise.
(Source: Laws 1961, p. 2101 .)
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810 ILCS 5/2-724
(810 ILCS 5/2-724) (from Ch. 26, par. 2-724)
Sec. 2-724.
Admissibility of market quotations.
Whenever the prevailing price or value of any goods regularly bought and
sold in any established commodity market is in issue, reports in official
publications or trade journals or in newspapers or periodicals of general
circulation published as the reports of such market shall be admissible in
evidence. The circumstances of the preparation of such a report may be
shown to affect its weight but not its admissibility.
(Source: Laws 1961, p. 2101.)
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810 ILCS 5/2-725
(810 ILCS 5/2-725) (from Ch. 26, par. 2-725)
Sec. 2-725.
Statute of Limitations in Contracts for Sale.
(1) An action for breach of any contract for sale must be commenced
within 4 years after the cause of action has accrued. By the original
agreement the parties may reduce the period of limitation to not less than
one year but may not extend it.
(2) A cause of action accrues when the breach occurs, regardless of the
aggrieved party's lack of knowledge of the breach. A breach of warranty
occurs when tender of delivery is made, except that where a warranty
explicitly extends to future performance of the goods and discovery of the
breach must await the time of such performance the cause of action accrues
when the breach is or should have been discovered.
(3) Where an action commenced within the time limited by subsection (1)
is so terminated as to leave available a remedy by another action for the
same breach such other action may be commenced after the expiration of the
time limited and within 6 months after the termination of the first action
unless the termination resulted from voluntary discontinuance or from
dismissal for failure or neglect to prosecute.
(4) This Section does not alter the law on tolling of the statute of
limitations nor does it apply to causes of action which have accrued before
this Act becomes effective.
(Source: Laws 1961, p. 2101.)
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