Also known as: § 2-723 · UCC § 2-723 · UCC 2-723 · 2-723 · proof of market price
Written by attorneys · grounded in primary & secondary sources — see below
A statutory rule in Article 2 of the Uniform Commercial Code that prescribes the methods for proving market price when that price fixes the measure of damages for breach of a sales contract.
Sterling Development contracted to buy steel beams from Dawn Build at a fixed price. After repudiation, Sterling purchased substitute beams at the prevailing market rate. At trial Sterling introduced trade reports and expert testimony showing the price on the date it learned of the breach. The court accepted those materials as competent proof of market price and awarded damages measured by the difference between that price and the contract price.
Oloffson bought corn from Coomer for future delivery at a set contract price. Coomer repudiated on June 3. Oloffson offered published market quotations from the local grain exchange showing the price on that date. The court used those quotations to calculate damages as the difference between the contract price and the market price established by the exchange reports.
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Published market reports, trade journals, and expert testimony concerning prices prevailing at the relevant time and place constitute competent proof. The statute authorizes courts to receive such materials without requiring testimony from every participant in the market.
Supporting sources
The buyer must prove market price as of the date the buyer learned of the breach. That date fixes the valuation point for the damages calculation under the companion remedy provisions.
Supporting sources
No. A buyer who does not cover may still recover market-price damages measured at the time the buyer learned of the breach. The statute expressly preserves that remedy even when cover is not pursued.
…Official comment, ¶ 5), is K.S.A. 84-2-713(1), which provides: "Subject to the provisions of this article with respect to proof of market price (section 84-2-723), the measure of damages for nondelivery or repudiation by the seller is the difference between the market price at the time when the buyer learned of the breach and the…