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Texas Business & Commerce Code - Section 2A.219. Risk Of Loss

Legal Research Home > Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 2A.219. Risk Of Loss

§ 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 
take delivery.
		(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