What type of goods may invoke special damages under the UCC?

The concept of special damages under the Uniform Commercial Code (UCC) is particularly relevant when it comes to the sale of unique goods or goods in limited circumstances. Special damages refer to those damages that are not the normal result of a breach of contract but are specifically linked to the buyer's needs or circumstances that the seller was aware of at the time of the contract.

When dealing with unique goods, such as one-of-a-kind items or products that are not mass-produced, the seller may be held liable for special damages if they fail to deliver those specific goods as agreed. This is because the buyer may have a particular use for or need for these items that goes beyond what an ordinary replacement would fulfill. The uniqueness of the goods highlights the reliance of the buyer on the seller’s promise, thus opening the door for claims of special damages.

In contrast, mass-produced items, refurbished products, and generic items typically do not invoke special damages because there are usually adequate alternatives available in the market. Buyers can readily find replacements for these types of goods, which diminishes the need for special damages in cases of breach. This understanding reinforces the context of why unique goods or those in limited circumstances are treated differently in the realm of special damages under the UCC.