Action for Price: When a Seller Can Sue Directly for the Purchase Price

1. What Is an Action for Price

In U.S. Sales law, specifically under UCC §2-709, an action for price represents a specific performance-like remedy. It is the seller's way of saying: "The goods are yours, and the money is mine."

Action for Price Vs Damages for Nonpayment

The distinction between an action for price and a claim for damages is clinical.

Damages:

Usually involve the difference between the contract price and the market price (or the resale price). The seller keeps the goods and seeks the "loss of the bargain."

Action for Price:

The seller seeks the full purchase price. Once the judgment is satisfied, the buyer owns the goods.

Purpose of Price-Based Remedies

The law designed this remedy for situations where merely awarding "damages" would be inadequate. If a seller is stuck with goods that were specifically manufactured for a buyer and cannot be sold to anyone else, simply receiving the "profit margin" doesn't help the seller clear their warehouse or recover their full investment. The action for price shifts the burden of the unwanted goods back to the breaching buyer.

2. When Is an Action for Price Available

This remedy is restricted to three specific scenarios under UCC §2-709. If your situation does not fall into one of these buckets, your claim for the full price may be dismissed in favor of a simpler damages claim.

Goods Accepted by the Buyer

The most common trigger is when the buyer has already accepted goods. Once acceptance occurs, the payment obligation becomes absolute. Even if the buyer later changes their mind or tries to return the goods without a legal basis (wrongful rejection), the seller is entitled to the full purchase price.

Goods Lost or Damaged after Risk of Loss Passed

If the goods are destroyed or lost within a commercially reasonable time after the risk of loss has passed to the buyer, the seller can sue for the price. For example, if the contract was "F.O.B. Seller’s Warehouse" and the goods were destroyed in transit, the buyer may still owe the full price even though they never received the items.

Goods That Cannot Be Resold

If the seller is still in possession of the goods but cannot resell them at a reasonable price after a "reasonable effort," they may maintain an action for price. This typically applies to:

Custom-made or "bespoke" machinery.
Goods with a highly niche market.
Perishable items where the market has collapsed.

3. Legal Requirements for an Action for Price

To prevail in an action for price, a seller generally must show a valid sales contract, delivery or acceptance of goods under applicable law, and the buyer’s failure to pay the contract price when due.

Valid Sales Contract and Identified Goods

The seller must prove a contract existed and that the goods in question were "identified" to that contract. You cannot sue for the price of "any ten widgets"; you must be suing for the price of the specific ten widgets intended for that buyer.

Payment Due and Unpaid

The payment obligation must have matured. If the contract allows for a 30-day credit window (Net 30), the seller cannot initiate an action for price on day 15. The breach only occurs once the deadline passes without the purchase price being tendered.

4. When an Action for Price Is Not the Proper Remedy

One of the most frequent mistakes in commercial transactions is pursuing the full price when the law requires mitigation.

Rejection or Revocation of Acceptance

If a buyer rightfully rejects the goods because they are nonconforming, the seller cannot sue for the price. The seller must first "cure" the defect or seek damages for the buyer's potential breach of the broader agreement. Similarly, if a buyer effectively revokes their acceptance due to a hidden defect, the action for price is no longer on the table.

Availability of Resale or Cover

If the goods are standard inventory (e.g., raw steel, common electronics) that can easily be sold to another customer, the seller must attempt to resell them. The law prevents a seller from "dumping" standard goods on a buyer and demanding the full price if a market exists to absorb those goods.

5. Defenses to an Action for Price

A buyer facing an action for price will often search for technical failures in the seller's performance to avoid the full payment obligation.

Nonconforming Goods

The "Perfect Tender Rule" is the buyer's primary shield. If the goods delivered were even slightly different from the contract specifications, the buyer can argue that they never truly "accepted" the goods, thereby defeating the action for price.

Failure of Conditions Precedent

Many sales contracts have conditions that must be met before payment is due: such as a successful quality inspection or the delivery of specific certifications. If the seller failed to meet these conditions, the buyer’s duty to pay has not yet been triggered.

6. How Courts Enforce an Action for Price Judgment

Winning the legal argument is only half the battle; the goal is capital recovery.

Monetary Judgments and the "Holding" of Goods

When a court awards an action for price, it usually orders the seller to hold the goods for the buyer. Once the buyer pays the judgment, the seller must deliver the items. If the seller manages to resell the goods while the lawsuit is pending, the proceeds of that sale must be credited to the buyer, and the claim for the "price" converts back into a claim for "damages."

Collection and Enforcement Limits

Like any civil judgment, an award for the price is subject to the buyer's ability to pay. SJKP LLP performs a forensic audit of the buyer’s assets before filing to ensure the seller’s remedy results in a check, not just a piece of paper.

7. Key Questions before Filing an Action for Price

Were the goods accepted or unrecoverable? If the buyer has them or they were destroyed after the risk passed, the price is the right target. Is resale still possible? If you can sell the goods for 90% of the price tomorrow, a damages claim for the 10% difference is much faster and cheaper than a full lawsuit for the price. Where are the goods now? If the seller still has the goods, they must be kept ready for the buyer if the price is paid.

8. Limitations of an Action for Price

Narrow Statutory Availability: You cannot "elect" this remedy just because you want the cash; you must prove the specific conditions of UCC §2-709. Buyer Defenses: Because this is such a powerful remedy, courts allow buyers to raise extensive defenses regarding the quality of the goods. Storage Costs: The seller may have to store the goods for months or years during litigation, which can eat into the final recovery unless "incidental damages" are also claimed.

9. Why Legal Counsel Matters in Choosing an Action for Price

An action for price is the most restrictive and technically demanding seller's remedy; choosing it incorrectly can lead to a dismissal and wasted legal fees. Navigating the UCC §2-709 requirements requires a clinical audit of the delivery logs, acceptance emails, and market conditions. SJKP LLP provides the analytical stewardship needed to select the remedy that maximizes your recovery while minimizing procedural risk. We ensure that your payment obligation is enforced through the most effective legal lens.

04 Feb, 2026