Legislation
SECTION 2-509
Risk of Loss in the Absence of Breach
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 2, PART 5
Section 2--509. Risk of Loss in the Absence of Breach.
(1) Where the contract requires or authorizes the seller to ship the
goods by carrier
(a) if it does not require him to deliver them at a particular
destination, the risk of loss passes to the buyer when the
goods are duly delivered to the carrier even though the
shipment is under reservation (Section 2--505); but
(b) if it does require him to deliver them at a particular
destination and the goods are there duly tendered while in
the possession of the carrier, the risk of loss passes to the
buyer when the goods are there duly so tendered as to enable
the buyer to take delivery.
(2) Where the goods are held by a bailee to be delivered without being
moved, the risk of loss passes to the buyer
(a) on his receipt of possession or control of a negotiable
document of title covering the goods; or
(b) on acknowledgment by the bailee of the buyer's right to
possession of the goods; or
(c) after his receipt of possession or control of a
non-negotiable document of title or other direction to
deliver in a record, as provided in subsection (4) (b) of
Section 2--503.
(3) In any case not within subsection (1) or (2), the risk of loss
passes to the buyer on his receipt of the goods if the seller is a
merchant; otherwise the risk passes to the buyer on tender of delivery.
(4) The provisions of this section are subject to contrary agreement
of the parties and to the provisions of this Article on sale on approval
(Section 2--327) and on effect of breach on risk of loss (Section
2--510).
(1) Where the contract requires or authorizes the seller to ship the
goods by carrier
(a) if it does not require him to deliver them at a particular
destination, the risk of loss passes to the buyer when the
goods are duly delivered to the carrier even though the
shipment is under reservation (Section 2--505); but
(b) if it does require him to deliver them at a particular
destination and the goods are there duly tendered while in
the possession of the carrier, the risk of loss passes to the
buyer when the goods are there duly so tendered as to enable
the buyer to take delivery.
(2) Where the goods are held by a bailee to be delivered without being
moved, the risk of loss passes to the buyer
(a) on his receipt of possession or control of a negotiable
document of title covering the goods; or
(b) on acknowledgment by the bailee of the buyer's right to
possession of the goods; or
(c) after his receipt of possession or control of a
non-negotiable document of title or other direction to
deliver in a record, as provided in subsection (4) (b) of
Section 2--503.
(3) In any case not within subsection (1) or (2), the risk of loss
passes to the buyer on his receipt of the goods if the seller is a
merchant; otherwise the risk passes to the buyer on tender of delivery.
(4) The provisions of this section are subject to contrary agreement
of the parties and to the provisions of this Article on sale on approval
(Section 2--327) and on effect of breach on risk of loss (Section
2--510).