UCC - Risk of Loss, Insurable Interests, Title & GF Purchase, SOL Flashcards
Risk of Loss - Unidentified Goods
If goods are damaged/destroyed and there is no breach
- risk of loss is on seller until he satisfies delivery obligations
Risk of Loss - Identified Goods
S is excused if goods are totally destroyed through no fault of the seller prior to risk being shifted to B
Risk of Loss - Effect of breach by Seller
If S delivers nonconforming goods, risk stays with the S until B accepts or there is a cure
In carrier cases, when does ROL pass ?
S Promises to turn goods over to Buyer
ROL passes to B when goods are delivered to the carrier
In non-carrier cases, when does ROL pass?
Seller is not a Merchant
- If S not a merch. then ROL passes to B upon tender of delivery
What is the SOL on a breach of a sales K ?
Under Article 2 - an action for breach must be commenced within 4 years after the COA accures
- COA accrues when the breach occurs, regardless of whether aggrieved party knows
Modification of limitations pd.
By their orig. agreement, the parties cna reduce the 4 year limitations period to not less than one year
- BUT can’t extend it
Risk of Loss - Shipment Contract
Risk passes to B when S gives possession of the goods to carrier & makes proper K for their shipment
Risk of Loss - Destination Contract
Risk passes to buyer when S tenders the goods at the place specified in the K
Risk of Loss - Effect of Breach by
if after goods have been identified but b/f risk passes
- risk immed. shifts to buyer (to extent of lack of insurance coverage by S)
Non-Carrier Cases ROL
Seller is a merchant
If S is a merch. ROL passes when goods are phys. in buyer’s poss.
In carrier cases, when does ROL pass ?
S promises to tender delivery at Particular Destination
ROL passes to B when goods tendered to the destination point
