2501 - Insurable interest in goods; manner of identification of goods.
CHAPTER 25 PERFORMANCE Sec. 2501. Insurable interest in goods; manner of identification of goods. 2502. Right of buyer to goods on repudiation, failure to deliver or insolvency of seller. 2503. Manner of tender of delivery by seller. 2504. Shipment by seller. 2505. Shipment by seller under reservation. 2506. Rights of financing agency. 2507. Effect of tender by seller; delivery on condition. 2508. Cure by seller of improper tender or delivery; replacement. 2509. Risk of loss in absence of breach. 2510. Effect of breach on risk of loss. 2511. Tender of payment by buyer; payment by check. 2512. Payment by buyer before inspection. 2513. Right of buyer to inspection of goods. 2514. When documents deliverable on acceptance; when on payment. 2515. Preserving evidence of goods in dispute. Enactment. Chapter 25 was added November 1, 1979, P.L.255, No.86, effective January 1, 1980. § 2501. Insurable interest in goods; manner of identification of goods. (a) General rule.--The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers even though the goods so identified are nonconforming and he has an option to return or reject them. Such identification can be made at any time and in any manner explicitly agreed to by the parties. In the absence of explicit agreement identification occurs as follows: (1) When the contract is made if it is for the sale of goods already existing and identified. (2) If the contract is for the sale of future goods other than those described in paragraph (3), when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers. (3) When the crops are planted or otherwise become growing crops or the young are conceived if the contract is for the sale of unborn young to be born within 12 months after contracting or for the sale of crops to be harvested within 12 months or the next normal harvest season after contracting whichever is longer. (b) Duration of insurable interest and substitution of goods.--The seller retains an insurable interest in goods so long as title to or any security interest in the goods remains in him and where the identification is by the seller alone he may until default or insolvency or notification to the buyer that the identification is final substitute other goods for those identified. (c) Other insurable interests unimpaired.--Nothing in this section impairs any insurable interest recognized under any other statute or rule of law. Cross References. Section 2501 is referred to in sections 2103, 2401, 2502 of this title.