Texas Business & Commerce Code - Section 2A.219. Risk Of Loss
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Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 2A.219. Risk Of Loss
Section: 2A.212 2A.213 2A.214 2A.215 2A.216 2A.217 2A.218 2A.219 2A.220 2A.221 2A.301 2A.302 2A.303 2A.304 2A.305
§ 2A.219. RISK OF LOSS. (a) Except in the case of a
finance lease, risk of loss is retained by the lessor and does not
pass to the lessee. In the case of a finance lease, risk of loss
passes to the lessee.
(b) Subject to the provisions of this chapter on the effect
of default on risk of loss (Section 2A.220), if risk of loss is to
pass to the lessee and the time of passage is not stated, the
following rules apply:
(1) If the lease contract requires or authorizes the
goods to be shipped by carrier:
(A) and it does not require delivery at a
particular destination, the risk of loss passes to the lessee when
the goods are duly delivered to the carrier; but
(B) if it does require delivery 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 lessee
when the goods are there duly so tendered as to enable the lessee to
(2) If the goods are held by a bailee to be delivered
without being moved, the risk of loss passes to the lessee on
acknowledgement by the bailee of the lessee's right to possession
of the goods.
(3) In any case not within Subdivision (1) or (2), the
risk of loss passes to the lessee on tender of delivery if the
lessee is a merchant; otherwise the risk of loss passes to the
lessee on the lessee's receipt of the goods.
Added by Acts 1993, 73rd Leg., ch. 570, § 1, eff. Sept. 1, 1993.
Last modified: August 11, 2007