The buyer on notifying the seller of his intention to do so may deduct all or any part of the damages resulting from any breach of the contract from any part of the price still due under the same contract.
History: 1953 Comp., § 50A-2-717, enacted by Laws 1961, ch. 96, § 2-717.
ANNOTATIONSOFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Prior uniform statutory provision. — See Section 69(1) (a), Uniform Sales Act.
1. This section permits the buyer to deduct from the price damages resulting from any breach by the seller and does not limit the relief to cases of breach of warranty as did the prior uniform statutory provision. To bring this provision into application the breach involved must be of the same contract under which the price in question is claimed to have been earned.
2. The buyer, however, must give notice of his intention to withhold all or part of the price if he wishes to avoid a default within the meaning of the section on insecurity and right to assurances. In conformity with the general policies of this article, no formality of notice is required and any language which reasonably indicates the buyer's reason for holding up his payment is sufficient.
Cross reference. — Point 2: Section 2-609.
"Buyer". Section 2-103.
"Notifies". Section 1-201.
Am. Jur. 2d, A.L.R. and C.J.S. references. — Right of purchaser in making tender to deduct from purchase price amount of obligations which it is the vendor's duty to satisfy, 173 A.L.R. 1309.
77A C.J.S. Sales § 395 et seq.