400.2-503. Manner of seller's tender of delivery.

Manner of seller's tender of delivery.

400.2-503. (1) Tender of delivery requires that the sellerput and hold conforming goods at the buyer's disposition and givethe buyer any notification reasonably necessary to enable him totake delivery. The manner, time and place for tender aredetermined by the agreement and this article, and in particular

(a) tender must be at a reasonable hour, and if it is ofgoods they must be kept available for the period reasonablynecessary to enable the buyer to take possession; but

(b) unless otherwise agreed the buyer must furnishfacilities reasonably suited to the receipt of the goods.

(2) Where the case is within the next section respectingshipment tender requires that the seller comply with itsprovisions.

(3) Where the seller is required to deliver at a particulardestination tender requires that he comply with subsection (1)and also in any appropriate case tender documents as described insubsections (4) and (5) of this section.

(4) Where goods are in the possession of a bailee and are tobe delivered without being moved

(a) tender requires that the seller either tender anegotiable document of title covering such goods or procureacknowledgment by the bailee of the buyer's right to possessionof the goods; but

(b) tender to the buyer of a nonnegotiable document of titleor of a written direction to the bailee to deliver is sufficienttender unless the buyer seasonably objects, and receipt by thebailee of notification of the buyer's rights fixes those rightsas against the bailee and all third persons; but risk of loss ofthe goods and of any failure by the bailee to honor thenonnegotiable document of title or to obey the direction remainson the seller until the buyer has had a reasonable time topresent the document or direction, and a refusal by the bailee tohonor the document or to obey the direction defeats the tender.

(5) Where the contract requires the seller to deliverdocuments

(a) he must tender all such documents in correct form,except as provided in this article with respect to bills oflading in a set (subsection (2) of section 400.2-323); and

(b) tender through customary banking channels is sufficientand dishonor of a draft accompanying the documents constitutesnonacceptance or rejection.

(L. 1963 p. 503 § 2-503)