(1) If, in cases of a sale between merchants, the buyer refuses or is unable to receive the subject matter of such sale, the seller may deposit it or sell it by auction after giving peremptory notice within a reasonable period set by him/her. In such cases, he/she shall send notice thereof to the buyer without delay.
(2) If, in cases falling under the preceding paragraph, the seller is unable to give peremptory notice to the buyer, or the subject matter is likely to be lost or damaged, he/she may sell it by auction without giving peremptory notice.
(3) Where the seller has sold an object which is the subject matter of the sale by auction in accordance with the preceding two paragraphs, he/she shall deposit the balance after deducting the cost of auction therefrom: Provided, That he/she may appropriate such proceeds, in whole or in part, for the purchase.