Okla. Stat. tit. 12A § 2-712

Current through Laws 2024, c. 453.

Section 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.

Okla. Stat. tit. 12A, § 2-712

Laws 1961, p. 99, § 2-712.

Oklahoma Code Comment

Prior Statutory Provisions:

23 O.S. § 29.

Text and derivation of prior provisions, see Appendix at end of this title.

Comment:

This section is new law. Under the Uniform Sales Act, not adopted in Oklahoma, the buyer's measure of damages was the difference between the contract price and the "market value" of the goods. The price which the purchaser was required to pay to obtain substitute goods was only evidence of market value, and was not necessarily accepted in measuring damages. The Commercial Code permits the buyer to buy on the open market, and if the purchase is in good faith, he may recover the difference between that price and the contract price.

The previous Oklahoma decisions are not clear. Some of them speak in terms of the difference between the contract price and the market value, Hurley Gasoline Co. v. Johnson Oil Refining Co., 118 Okl. 26, 246 P. 438 (1926), and others speak in terms of the difference between contract price and the price the buyer was required to pay on the market. Queen Anne Candy Co. v. Eagle, 187 Okl. 105, 101 P.2d 624 (1940). It appears, therefore, that this section does not make a drastic change of Oklahoma law.

23 O.S. § 92, on value to buyer, is undoubtedly superseded by the Commercial Code to the extent that it is inconsistent herewith.