Incidental damages to an aggrieved seller include any commercially reasonable charges, expenses, or commissions incurred in stopping delivery, in the transportation, care, and custody of goods after the buyer's breach, in connection with return or resale of the goods, or otherwise resulting from the breach.
Source: L. 65: p. 1339, § 1. C.R.S. 1963: § 155-2-710.
ANNOTATION
Cancellation and carrying costs commercially reasonable. Trial court erred in upholding jury award to seller because the jury could have concluded that the seller's charge to the buyer for carrying and cancellation was a reasonable one arising under the express terms of the contract as an expense incurred as a result of the buyer's request to delay shipment. Murray Equipment Co. v. Curtis, Inc., 725 P.2d 35 (Colo. App. 1986).
Absent other statutory or contractual provisions to the contrary, attorney fees are not incidental damages under this section. Jelen and Son, Inc. v. Bandimere, 801 P.2d 1182 (Colo. 1990).
Seller's damages were not incidental to buyer's refusal to accept delivery of chemicals, but instead were incurred as a result of improper storage, handling, and transportation of hazardous materials and subsequent dealings with a third party. Jelen and Son, Inc. v. Bandimere, 801 P.2d 1182 (Colo. 1990).
The focus of this section is upon damages arising within the scope of the immediate contract. Damages must arise as a result of the breach to be characterized as incidental under this section. Jelen and Son, Inc. v. Bandimere, 801 P.2d 1182 (Colo. 1990).