12A:2-509 - Risk of loss in the absence of breach

12A:2-509.  Risk of loss in the absence of breach
    (1) Where the contract requires or authorizes the seller to ship the goods by carrier

     (a) 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 (12A:2-505);  but

     (b) 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.

    (2) Where the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the buyer

     (a) on his receipt of a negotiable document of title covering the goods; or

     (b) on acknowledgement 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 12A: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 Chapter on sale on approval (12A:2-327)  and on effect of breach on risk of loss (12A:2-510).

     L.1961, c. 120, s. 2-509.