§ 6A-2.1-219 - Risk of loss. - Rhode Island Statutes

SECTION 6A-2.1-219

   § 6A-2.1-219  Risk of loss. – (1) Except in the case of a finance lease, risk of loss is retained by thelessor and does not pass to the lessee. In the case of a finance lease, risk ofloss passes to the lessee.

   (2) Subject to the provisions of this chapter on the effectof default on risk of loss (§ 6A-2.1-220), if risk of loss is to pass tothe lessee and the time of passage is not stated, the following rules apply:

   (a) If the lease contract requires or authorizes the goods tobe shipped by carrier:

   (i) And it does not require delivery at a particulardestination, the risk of loss passes to the lessee when the goods are dulydelivered to the carrier; but

   (ii) If it does require delivery at a particular destinationand 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 tenderedas to enable the lessee to take delivery.

   (b) If the goods are held by a bailee to be delivered withoutbeing moved, the risk of loss passes to the lessee on acknowledgment by thebailee of the lessee's right to possession of the goods.

   (c) In any case not within subsection (a) or (b), the risk ofloss passes to the lessee on the lessee's receipt of the goods if the lessor,or, in the case of a finance lease, the supplier, is a merchant; otherwise therisk passes to the lessee on tender of delivery.