§ 4-2-509 — 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 loss passes to the buyer when the goods are duly delivered to the carrier
even though the shipment is under reservation (section 4-2-505); but

(b) If it does require him to deliver them at a particular destination and the
goods are there duly tendered while in the possession of the carrier, the risk of loss
passes to the buyer when 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 of loss passes to the buyer:

(a) On the buyer's receipt of possession or control of a negotiable document
of title covering the goods; or

(b) On acknowledgment by the bailee of the buyer's right to possession of
the goods; or

(c) After the buyer's receipt of possession or control of a nonnegotiable
document of title or other direction to deliver in a record, as provided in subsection
(4)(b) of section 4-2-503.

(3) In any case not within subsection (1) or (2) of this section, the risk of loss
passes to the buyer on his receipt of the goods if the seller is a merchant;
otherwise, the risk passes to the buyer on tender of delivery.

(4) The provisions of this section are subject to contrary agreement of the
parties and to the provisions of this article on sale on approval (section 4-2-327)
and on effect of breach on risk of loss (section 4-2-510).

Legislative History

Source: L. 65: p. 1325, � 1. C.R.S. 1963: � 155-2-509. L. 2006: (2)(a) and (2)(c) amended, p. 492, � 13, effective September 1.