Deduction of damages from the price.
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.
Source:Laws 1963, c. 544, Art. II, § 2-717, p. 1763.
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 or her intention to withhold all or part of the price if he or she 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 or her payment is sufficient.
Point 2: Section 2-609.
Definitional Cross References:
"Buyer". Section 2-103.
"Notifies". Section 1-201.