Colorado § 4-2-501 Insurable interest in goods - manner of identification of goods

Colorado Statutes

§ 4-2-501 — Insurable interest in goods - manner of identification of goods

Colorado § 4-2-501

Title 04Uniform

Art.Sales

This text of Colorado § 4-2-501 (Insurable interest in goods - manner of identification of goods) is published on Counsel Stack Legal Research, covering Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Colo. Rev. Stat. § 4-2-501 (2026).

Text

(1)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:

(a)When the contract is made if it is for the sale of goods already existing and identified;

(b)If the contract is for the sale of future goods other than those described in paragraph (c) of this subsection, when goods are shipped, marked, or otherwise designated by the seller as goods to which the contract refers; or

(c)When the crops are planted or otherwise become gro

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(1)
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:

(a) When the contract is made if it is for the sale of goods already existing
and identified;

(b) If the contract is for the sale of future goods other than those described
in paragraph (c) of this subsection, when goods are shipped, marked, or otherwise
designated by the seller as goods to which the contract refers; or

(c) 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 twelve months after contracting or for the sale of crops to be harvested
within twelve months or the next normal harvest season after contracting,
whichever is longer.

(2) 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.

(3) Nothing in this section impairs any insurable interest recognized under
any other statute or rule of law.