Incidental damages occur when a sale of goods contract has been breached, resulting in additional expenses to the non-breaching party. These damages must occur in relation to the breach.
Seller’s Incidental Damages
A seller may recover any reasonable expenses incurred in:
- Stopping delivery
- Transportation, care, and custody of goods after the buyer’s breach
- Returning or reselling goods
- Other expenses incident to the breach
Buyer’s Incidental Damages
A buyer may recover any reasonable expenses incurred in:
- Inspection or receipt of goods later rejected
- Care and custody of goods later rejected
- Charges incurred in replacing (covering) the goods
- Other expenses incident to the delay or breach
How Can a Lawyer Help?
If you are involved in a contract that has been breached, a contract attorney can help you prove a breach and fight for the remedy you deserve. In addition, an attorney can help you draft contracts to protect yourself and your legal rights.
