Also known as: net proceed · net amount realized
Written by attorneys · grounded in primary & secondary sources — see below
The amount received from a sale or other transaction after subtracting the costs of completing the transaction such as expenses and commissions.
Nordic Ventures sued a buyer for the price of identified goods still in its control. After the buyer repudiated, Nordic resold the goods and applied the amount received after deducting resale commissions and storage fees to reduce the judgment. The buyer received credit for that reduced sum upon satisfying the judgment and took the remaining goods.
A state-owned railroad generated revenue from freight operations. After paying operating expenses the state applied the remaining sum to harbor improvements. The court examined whether those remaining funds counted toward the state's sovereign functions.
Select any source to read its text and confirm it supports the definition.
Spouses sold property subject to a federal tax lien. The IRS released the lien for the closing on the condition that half the amount received after paying sale costs be held in escrow. The court later determined the government's interest in those escrowed funds.
Hoffman sold the bakery building at defendants' request. The amount received after the sale loss became part of the cash he needed to invest in the new store. The court included that reduced sum when calculating reliance damages.
Investors in a citrus grove venture received periodic payments from the operator. The operator forwarded the amount collected from fruit sales after deducting cultivation and marketing expenses. The court treated those payments as the investors' return on the enterprise.
A federal corporation sold restored land and used the amount received after transaction costs to finance additional cleanups. The court considered whether a state fee applied to those funds when the corporation conducted the sales.
Under UCC § 2-709(2) the seller must credit the buyer with the amount received on resale after deducting resale expenses. Payment of the judgment then entitles the buyer to any goods that remain unsold.
Supporting sources
Black's Law Dictionary defines net proceeds as the amount received minus transaction costs such as expenses and commissions.
Supporting sources
When a spouse sells premarital separate property and uses the entire net proceeds as a down payment on a new asset, the traceable portion remains that spouse's individual property under statutes that protect property acquired in exchange for individual assets.
Supporting sources
…awarded by the jury. The bakery building at Wautoma was sold at defendants’ instigation in order that Hoffman might have the net proceeds available as part of the cash capital he was to invest in the Chilton store venture. The evidence clearly establishes that it was sold at a loss of $2,000. Defendants contend that half of…