Open Time for Payment or Running of Credit; Authority to Ship Under Reservation

1. Law
2. Georgia Code
3. Commercial Code
4. Sales
5. General Obligation and Construction of Contract
6. Open Time for Payment or Running of Credit; Authority to Ship Under Reservation

Unless otherwise agreed:

1. Payment is due at the time and place at which the buyer is to receive the goods even though the place of shipment is the place of delivery; and
2. If the seller is authorized to send the goods he or she may ship them under reservation, and may tender the documents of title, but the buyer may inspect the goods after their arrival before payment is due unless such inspection is inconsistent with the terms of the contract (Code Section 11-2-513); and
3. If delivery is authorized and made by way of documents of title otherwise than by subsection (b) of this Code section then payment is due regardless of where the goods are to be received (i) at the time and place at which the buyer is to receive delivery of the tangible documents or (ii) at the time the buyer is to receive delivery of the electronic documents and at the seller's place of business or if none, the seller's residence; and
4. Where the seller is required or authorized to ship the goods on credit the credit period runs from the time of shipment but post-dating the invoice or delaying its dispatch will correspondingly delay the starting of the credit period.

(Code 1933, § 109A-2 - 310, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 2-4/HB 451.)

The 2010 amendment, effective May 27, 2010, inserted "or she" near the beginning of paragraph (b); in paragraph (c), inserted "regardless of where the goods are to be received (i)" and substituted "delivery of the tangible documents or (ii) at the time the buyer is to receive delivery of the electronic documents and at the seller's place of business or if none, the seller's residence" for "the documents regardless of where the goods are to be received" near the end; and substituted "post-dating" for "postdating" in the middle of paragraph (d). See the Editor's notes for applicability.

Editor's notes.

- Ga. L. 2010, p. 481, § 3-1, not codified by the General Assembly, provides that: "This Act applies to a document of title that is issued or a bailment that arises on or after the effective date of this Act. This Act does not apply to a document of title that is issued or a bailment that arises before the effective date of this Act even if the document of title or bailment would be subject to this Act if the document of title had been issued or bailment had arisen on or after the effective date of this Act. This Act does not apply to a right of action that has accrued before the effective date of this Act." This Act became effective May 27, 2010.

Ga. L. 2010, p. 481, § 3-2, not codified by the General Assembly, provides that: "A document of title issued or a bailment that arises before the effective date of this Act and the rights, documents, and interests flowing from that document or bailment are governed by any statute or other rule amended or repealed by this Act as if such amendment or repeal had not occurred and may be terminated, completed, consummated, or enforced under that statute or other rule." This Act became effective May 27, 2010.

JUDICIAL DECISIONS

Editor's notes.

- In light of the similarity between the provisions, decisions under former Code 1933, § 96-106 are included in the annotations of this section.

Where time for second installment payment is left open, it is due immediately.

- Where contract extends definite credit for first payment, leaving time of payment of second installment in abeyance, rule is that unless additional credit for second payment should be agreed on, it would be due immediately. Irvin v. Locke, 200 Ga. 675, 38 S.E.2d 289 (1946) (decided under former Code 1933, § 96-106).

Cited in Deck House, Inc. v. Scarborough, Sheffield & Gaston, Inc., 139 Ga. App. 173, 228 S.E.2d 142 (1976); Babbitt v. State, 314 Ga. App. 115, 723 S.E.2d 10 (2012).

RESEARCH REFERENCES

Am. Jur. 2d.

- 67 Am. Jur. 2d, Sales, §§ 309-311.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:118. 19A Am. Jur. Pleading and Practice Forms, Payment, § 3.

C.J.S.

- 77A C.J.S., Sales, § 208 et seq.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-310.

ALR.

- When payment is due under contract to render services silent as to time of payment, 2 A.L.R. 522.

Buyer's right to inspect at destination where goods are delivered to carrier, 27 A.L.R. 524.

Place, in absence of written provision in sales contract, where cash consideration for goods purchased is payable, 49 A.L.R.2d 1350.

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