LawWiki
HomeCodesSearchGlossaryAPIAbout
LawWiki

Plain English summaries of California law with zero-hallucination AI. Every summary is verified against official source text.

Product

  • Search
  • Codes
  • About

Legal

  • Privacy Policy
  • Terms of Service
  • Disclaimer

© 2026 LawWiki. All rights reserved.

HomeCommercial CodeDiv. 2Ch. 7§ 2704 Seller Remedies For Breach

§ 2704 Seller Remedies For Breach

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

§ 2704 Seller Remedies For Breach

This law lets a seller who’s been wronged by a buyer’s breach decide what to do with the goods they still have, even if the goods aren’t finished yet.

Key Takeaways

  • •If the seller still has the goods, they can point them out as the ones for the contract.
  • •Unfinished goods that were meant for the contract can be treated as resale items.
  • •The seller may finish the goods, scrap them, or do something else reasonable to avoid loss.

Example

A furniture maker builds a set of custom tables for a restaurant, but the restaurant backs out of the contract after the wood has already been cut.

The maker can either finish the tables and sell them to someone else, stop work and sell the unfinished wood for scrap, or take any other reasonable step to avoid losing money.

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

Official Source
View on CA.gov

§ 2704 Seller Remedies For Breach

(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; (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. (Enacted by Stats. 1963, Ch. 819.)

Last verified: January 10, 2026

Key Terms

aggrieved sellerconforming goodsunfinished goodsreasonable commercial judgment

Related Statutes

  • § 10524 Lessor Remedies After Default
  • § 2703 Seller Remedies For Breach
  • § 2709 Seller'S Price Recovery Rights
  • § 2710 Seller'S Breach Recovery Costs
  • § 2701 Collateral Contract Remedies

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2704.
View Official Source