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Texas Business & Commerce Code - Section 2.509. Risk Of Loss In The Absence Of Breach

Legal Research Home > Texas Lawyer > Business & Commerce Code > Texas Business & Commerce Code - Section 2.509. Risk Of Loss In The Absence Of Breach

§ 2.509. RISK OF LOSS IN THE ABSENCE OF BREACH.  (a) Where 
the contract requires or authorizes the seller to ship the goods by 
carrier
		(1)  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
		(2)  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.
	(b)  Where the goods are held by a bailee to be delivered 
without being moved, the risk of loss passes to the buyer
		(1)  on the buyer's receipt of possession or control of 
a negotiable document of title covering the goods;  or
		(2)  on acknowledgment by the bailee of the buyer's 
right to possession of the goods;  or
		(3)  after the buyer's receipt of possession or control 
of a non-negotiable document of title or other written direction to 
deliver, as provided in Subsection (d)(2) of Section 2.503.
	(c)  In any case not within Subsection (a) or (b), 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.
	(d)  The provisions of this section are subject to contrary 
agreement of the parties and to the provisions of this chapter on 
sale on approval (Section 2.327) and on effect of breach on risk of 
loss (Section 2.510).

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.  
Amended by Acts 1983, 68th Leg., p. 1531, ch. 290, § 2, eff. Aug. 
29, 1983;  Acts 2005, 79th Leg., ch. 122, § 10, eff. Sept. 1, 
2005.

Last modified: August 10, 2007