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HomeCommercial CodeDiv. 2Ch. 7§ 2703 Seller Remedies For Breach

§ 2703 Seller Remedies For Breach

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2703 Seller Remedies For Breach

This law lets a seller protect themselves if a buyer wrongly refuses to accept goods, cancels a purchase, or doesn't pay on time.

Key Takeaways

  • •If a buyer wrongly rejects or doesn't pay, the seller can hold back any more goods.
  • •The seller can stop delivery, sell the goods to another buyer, and ask for money they lost.
  • •The seller can also cancel the contract and ask for the price or damages.

Example

A store orders 50 tables, the seller delivers them, but the store says they don't want the tables and doesn't pay.

The seller can stop sending any more tables, keep the ones already delivered, sell the tables to someone else and ask the original buyer for the money they lost, or cancel the whole deal.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2703 Seller Remedies For Breach

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 2612), 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 (Section 2705); (c) Proceed under the next section respecting goods still unidentified to the contract; (d) Resell and recover damages as hereafter provided (Section 2706); (e) Recover damages for nonacceptance (Section 2708) or in a proper case the price (Section 2709); (f) Cancel. (Enacted by Stats. 1963, Ch. 819.)

Last verified: January 10, 2026

Key Terms

wrongfully rejectsfails to make a paymentrepudiatesaggrieved sellerwithhold deliveryresell and recover damagesrecover damages for nonacceptancecancel

Related Statutes

  • § 2704 Seller Remedies For Breach
  • § 2705 Seller'S Right To Stop Delivery
  • § 2710 Seller'S Breach Recovery Costs
  • § 2701 Collateral Contract Remedies
  • § 2702 Seller Rights For Insolvent Buyers

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2703.
View Official Source