Page:United States Statutes at Large Volume 77.djvu/690

 658

PUBLIC LAW 88-243-DEC. 30, 1963

[77 STAT.

(2) Where the goods are held by a bailee to be delivered without being moA'ed, the risk of loss passes to the buyer (a) on his receipt of a negotiable document of title coA'ering 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 a non-negotiable document of title or other written direction to deliver, as provided in subsection (4)(b) of section 28:2—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 28:2—327) and on effect of breach on risk of loss (section 28:2—510). §28:2—510. Effect of breach on risk of loss (1) Where a tender or deliverjof goods so fails to conform to the contract as to give a right of rejection the risk of their loss remains on the seller until cure or acceptance. (2) Where the buyer riglitfidly revokes acceptance he may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as having rested on the seller from the beginning. (3) Where the buyer as to conforming goods already identified to the contract for sale repudiates or is otherwise in breach before risk of their loss has passed to him, the seller may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as resting on the buyer for a commercially reasonable time. § 28:2—511. Tender of payment by buyer; payment by check (1) Unless otherwise agreed tender of payment is a condition to the seller's duty to tender and complete any delivery. (2) Tender of payment is sufficient Avhen made by any means or in any manner current in the ordinary course of business unless the seller demands payment in legal tender and gives any extension of time reasonably necessary to procure it. (3) Subject to the provisions of this subtitle on the effect of an instrument on an obligation (section 28:3—802), payment by check is conditional and is defeated as l)etween the parties by dishonor of the check on due ]>resentment. § 28:2—512. Payment by buyer before inspection (1) Where the contract requires payment before inspection nonconformity of the goods does not excuse the buyer from so making payment unless (a) the non-conformity appears without inspection; or (b) despite tender or the required doctiunents the circumstances would justify injunction against honor under the provisions of this subtitle (section 28:5—114). (2) Payment pursuant to subsection (1) does not constitute an acceptance of goods or impair the buyer's right to inspect or any of his remedies. § 28:2—513. Buyer's right to inspection of goods (1) Unless otherwise agreed and subject to subsection (3), where goods are tendered or delivered or identified to the contract for sale, the buyer has a right before payment or acceptance to inspect them at any reasonable place and time and in any reasonable manner. When the seller is required or authorized to send the goods to the buyer, the inspection may be after their arrival.

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