70A-2-503 - Manner of seller's tender of delivery.
70A-2-503. Manner of seller's tender of delivery.
(1) Tender of delivery requires that the seller put and hold conforming goods at thebuyer's disposition and give the buyer any notification reasonably necessary to enable him to takedelivery. The manner, time, and place for tender are determined by the agreement and thischapter, and in particular:
(a) tender must be at a reasonable hour, and if it is of goods, they must be kept availablefor the period reasonably necessary to enable the buyer to take possession; but
(b) unless otherwise agreed, the buyer must furnish facilities reasonably suited to thereceipt of the goods.
(2) Where the case is within the next section, respecting shipment tender requires that theseller comply with its provisions.
(3) Where the seller is required to deliver at a particular destination, tender requires thathe comply with Subsection (1) and also in any appropriate case tender documents as described inSubsections (4) and (5) of this section.
(4) Where goods are in the possession of a bailee and are to be delivered without beingmoved:
(a) tender requires that the seller either tender a negotiable document of title coveringsuch goods or procure acknowledgment by the bailee of the buyer's right to possession of thegoods; but
(b) tender to the buyer of a nonnegotiable document of title or of a record directing thebailee to deliver is sufficient tender unless the buyer seasonably objects, and except as otherwiseprovided in Chapter 9a, Uniform Commercial Code - Secured Transactions, receipt by the baileeof notification of the buyer's rights fixes those rights as against the bailee and all third persons;but risk of loss of the goods and of any failure by the bailee to honor the nonnegotiable documentof title or to obey the direction remains on the seller until the buyer has had a reasonable time topresent the document or direction, and a refusal by the bailee to honor the document or to obeythe direction defeats the tender.
(5) Where the contract requires the seller to deliver documents:
(a) he must tender all such documents in correct form, except as provided in this chapterwith respect to bills of lading in a set as provided in Subsection 70A-2-323(2); and
(b) tender through customary banking channels is sufficient and dishonor of a draftaccompanying or associated with the documents constitutes nonacceptance or rejection.
Amended by Chapter 42, 2006 General Session