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Simple English definitions for legal terms
Resale
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A quick definition of Resale:
Resale: Resale means selling something that was bought before. For example, a person who buys things from a store and then sells them to others for a profit is called a reseller. If the buyer breaks the agreement, the seller can sell the item to someone else to make up for the loss. Resale can happen in many different situations, like selling a house or stocks. When you sell something for more than you bought it, you may have to pay taxes on the profit you made.
A more thorough explanation:
Resale refers to the act of selling property that has been previously purchased. This can happen in many different contexts, such as in commercial transactions, real estate, or investments.
In commercial transactions, a reseller will typically purchase goods from a manufacturer or wholesaler with the intention of reselling them for a profit. If the buyer breaches the resale contract, the seller may have the right to resell the goods to another buyer as a remedy.
For example, a clothing store may purchase a large quantity of shirts from a manufacturer at a wholesale price, and then resell them to customers at a higher retail price. If the store is unable to sell all of the shirts, they may choose to resell them to another retailer or return them to the manufacturer.
In real estate, resale refers to the sale of a property that has already been owned by someone else. For example, if a homeowner decides to sell their house, they are engaging in a resale transaction.
Investors may also engage in resale transactions when buying and selling securities or other assets. For example, if an investor purchases shares of a stock and then sells them at a higher price, they have made a profit on the resale of the shares.
It is important to note that gains from the resale of property may be considered taxable income under the Internal Revenue Code.