§ 26-1-2-503 — Manner of seller's tender of delivery

(1) Tender of delivery requires that the
seller put and hold conforming goods at the buyer's disposition and
give the buyer any notification reasonably necessary to enable him to
take delivery. The manner, time and place for tender are determined by
the agreement and IC 26-1-2, and in particular:
(a) tender must be at a reasonable hour, and if it is of goods they
must be kept available for the period reasonably necessary to
enable the buyer to take possession; but
(b) unless otherwise agreed, the buyer must furnish facilities
reasonably suited to the receipt of the goods.
(2) Where the case is within IC 26-1-2-504 respecting shipment,
tender requires that the seller comply with its provisions.
(3) Where the seller is required to deliver at a particular destination,
tender requires that he comply with subsection (1) and also in any
appropriate case tender documents as described in subsections (4) and
(5).
(4) Where goods are in the possession of a bailee and are to be
delivered without being moved:
(a) tender requires that the seller either tender a negotiable
document of title covering such goods or procure
acknowledgement by the bailee of the buyer's right to possession
of the goods; but
(b) tender to the buyer of a nonnegotiable document of title or of
a record directing the bailee to deliver is sufficient tender unless
the buyer seasonably objects, and except as otherwise provided in
IC 26-1-9.1, receipt by the bailee of 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 document of title or to obey the direction
remains on the seller until the buyer has had a reasonable time to
present the document or direction, and a refusal by the bailee to
honor the document or to obey the 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 IC 26-1-2-323(2) with respect to bills of lading in a
set; and
(b) tender through customary banking channels is sufficient and
dishonor of a draft accompanying the documents constitutes
nonacceptance or rejection.
Formerly: Acts 1963, c.317, s.2-503. As amended by
P.L.152-1986, SEC.145; P.L.143-2007, SEC.13.