Anticipatory Repudiation - Measuring Damages

Measuring Damages

UCC 2-713(1) tells us to measure damages at the time when the buyer learned of the breach. This is easy with a one transaction sale (e.g. a widget at my door step on X date), but when do you learn of the breach in an anticipatory repudiation? There are three main views:

1. When the buyer learns of the repudiation
2. When the buyer learns of repudiation plus a commercially reasonable time
   1. UCC 2-610(a) gives this indication, you would be waiting at your risk if we determined the market price at the time you learn of repudiation.
   2. UCC 2-723(1) would indicate this, but it would be superfluous with 2-713 so 2-713 must have something other than the plain meaning.
   3. (1) If an action based on anticipatory repudiation comes to 2-723 trial before the time for performance with respect to some or all of the goods, any damages based on market price (Section UCC 2-708 or Section UCC 2-713) shall be determined according to the price of such goods prevailing at the time when the aggrieved party learned of the repudiation.
   4. This is the majority view: when repudiation is accepted or within a commercial reasonable time
3. Time of performance, when the trail that occurs after the time of performance
   1. This is different than the plain reading for UCC 2-713.