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 business 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.