70A-2-509 - Risk of loss in the absence of breach. - Utah Statutes

70A-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 losspasses to the buyer when the goods are duly delivered to the carrier even though the shipment isunder reservation as provided in Section 70A-2-505; but
(b) if it does require him to deliver them at a particular destination and the goods arethere duly tendered while in the possession of the carrier, the risk of loss passes to the buyerwhen 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 ofloss passes to the buyer:
(a) on his receipt of possession or control of a negotiable document of title covering thegoods;
(b) on acknowledgment by the bailee of the buyer's right to possession of the goods; or
(c) after his receipt of possession or control of a nonnegotiable document of title or otherdirection to deliver in a record, as provided in Subsection 70A-2-503(4)(b).
(3) In any case not within Subsection (1) or (2), the risk of loss passes to the buyer on hisreceipt of the goods if the seller is a merchant; otherwise the risk passes to the buyer on tender ofdelivery.
(4) The provisions of this section are subject to contrary agreement of the parties and tothe provisions of this chapter on sale on approval as provided in Section 70A-2-327 and on effectof breach on risk of loss as provided in Section 70A-2-510.

Amended by Chapter 42, 2006 General Session