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2d 311 (1972)
Facts: Neri contracted to buy a boat from Retail Marine Corporation (RMC) with an initial deposit of $40, requiring 4 to 6 weeks for delivery. To expedite the shipping process, Neri increased the deposit to $4,250 for immediate delivery based on a firm sale. Neri’s lawyer sent a letter to RMC, which was received six days after the contract date, by which time the boat had already been delivered to and was in the possession of RMC. The letter regarded Neri’s upcoming hospitalization and his inability to make payments, resulting in him rescinding his offer to buy. RMC refused to refund the deposit paid and Neri filed suit to recoup his down payment. RMC filed a countersuit alleging damages as a result of Neri’s breach. Four months following the breach, RMC resold the boat at the same price prescribed by the contract. At trial, RMC proved a loss of profits in the amount of $2,579 and incidental damages (§2-710) totaling $674. Procedural History: Neri filed suit against RMC in a NY trial court seeking to recover his deposit. RMC filed a counterclaim under UCC §2-718 claiming loss of profit, incidental damages, and attorney’s fees. The trial court summarily judged Neri to be in breach and discussed damages. The trial court ignored the incidental damages claimed by RMC and ruled in favor of Neri for the amount of $3,750 [Deposit amount minus $500 in damages under §2-718(2)]. Without opinion, the appellate court affirmed. Issue: Can a grieved seller recover lost profits and incidental damages because of a buyer’s breach under the UCC? Holding: The Court of Appeals of New York reversed the decision and granted Neri the deposit price of $4,250, minus the lost profit and incidental damages to RMC ($3,253) citing UCC §2-708(2) & §2-710.