Chapter 21 - b Sale or return i Is a sale but the buyer can...

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Title, Risk, and Insurable interest 1. Introduction a. Sale of goods requires different rules than real property transactions: risk should not always pass with title b. UCC replaces “title” with identification, risk, and insurable interest. 2. ROL: delivery without move of goods a. Goods held by the seller i. Document of title is generally not used b. If seller is a merchant, ROL passes when byer takes physical possession of goods c. If a seller is a non-merchant, risk passes on the seller’s tender of delivery d. Goods held by bailee ( warehouse). ROL passes when: i. Buyer receives document of title 1. Negioable bills – these are signed to the order of ii. Bailee acknowledges buyer’s right to goods and iii. Buyer has reasonable time to pick up 3. ROL: conditional sales a. A sale of on approval i. Buy never takes title until they decide to accept ii. If there is a loss to the buyers’ negligence, the buyer is responsible
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Unformatted text preview: b. Sale or return i. Is a sale, but the buyer can say he just doesn’t want it anymore 4. ROL: Breach of contract a. Generally breaching party bears ROL b. Sellers’ breach i. Rejection – risk stays with seller ii. Revocation of acceptance – risk passes back to seller to the extent that buyer’s insurance does not cover the loss c. Buyer’s breach i. Goods are identified ii. Risk passes to buyer for a reasonable amount of time after seller learns of the breach 5. Insurable interest a. Buyer has an insurable interest in goods that have been identified b. Seller has an insurable interest in goods as lng as they retain title or a security interest c. Both buyers and sellers can have an insurable interest at the same time....
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