This section contains the nature of the case and procedural background.

Davis (P) contracted to buy equipment from Diasonics (D), a manufacturer of medical diagnostic equipment. P then paid D a $300,000 deposit. Prior to contracting with D, P had contracted with companies to establish a medical facility where the equipment would be used. When the companies breached, P breached its contract with D, refusing to take delivery or pay the balance due under the agreement. D resold the equipment for the same price at which it was to be sold to P. P sued D for the return of the $300,000 down payment less $500 as provided under UCC section 2-718(2)(b). D counter-claimed as a 'lost volume seller' under 2-718(3) and for damages under 2-708(2). The court entered a summary judgment for P; lost volume sellers were not entitled to claim damages under 2-708(2), but are limited to the difference between the resale price and the contract price along with incidental damages under section 2-706(1). P was awarded $322,656 for the return of his down payment, and interest less D’s incidental damages. D appealed.

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