Where the case is within Code Section 11-2-504 respecting shipment tender requires that the seller comply with its provisions.
Where the seller is required to deliver at a particular destination tender requires that he comply with subsection (1) of this Code section and also in any appropriate case tender documents as described in subsections (4) and (5) of this Code section.
Where goods are in the possession of a bailee and are to be delivered without being moved:
Tender requires that the seller either tender a negotiable document of title covering such goods or procure acknowledgment by the bailee of the buyer's right to possession of the goods; but
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 Article 9 of this title 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.
Where the contract requires the seller to deliver documents:
He or she shall tender all such documents in correct form, except as provided in this article with respect to bills of lading in a set (subsection (2) of Code Section 11-2-323); and
Tender through customary banking channels is sufficient and dishonor of a draft accompanying or associated with the documents constitutes nonacceptance or rejection.
(Code 1933, § 109A-2 - 503, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2010, p. 481, § 2-7/HB 451.)
The 2010 amendment, effective May 27, 2010, in paragraph (4)(b), substituted "record directing" for "written direction to" and inserted "except as otherwise provided in Article 9 of this title" near the beginning; substituted "or she shall" for "must" near the beginning of paragraph (5)(a); and inserted "or associated with" in the middle of paragraph (5)(b). See the Editor's notes for applicability.
Cross references.- Bailments generally, § 44-12-40 et seq.
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 in the provisions, decisions under former Code 1933, § 20-1106 are included in the annotations for this section.
Tender defined.
- Tender is an offer to deliver something, made in pursuance of some contract or obligation, under such circumstances as to require no further act from party making it to complete transfer; it may be either of money or of specific articles. Carnation v. Pridgen, 84 Ga. App. 768, 67 S.E.2d 485 (1951) (decided under Code 1933, § 20-1106).
Tender not required where party states it will be refused.
- It is unnecessary to make a tender where party to whom offer is made states that tender will be refused if made. Carnation v. Pridgen, 84 Ga. App. 768, 67 S.E.2d 485 (1951) (decided under Code 1933, § 20-1106).
Vendee breaching by refusing to accept goods may not assert lack of delivery as defense.
- Defendant, maker of note, having breached contract by refusing to accept goods purchased thereunder, the contract by its terms not subject to cancellation, and vendor having elected to store goods for vendee, and having notified vendee of disposition of the goods, defendant cannot set up as a defense to suit on the note that contract merchandise was not delivered to vendee according to contract terms. Carnation v. Pridgen, 84 Ga. App. 768, 67 S.E.2d 485 (1951) (decided under Code 1933, § 20-1106).
Cited in Undercofler v. Eastern Air Lines, 221 Ga. 824, 147 S.E.2d 436 (1966); Hill Aircraft & Leasing Corp. v. Planes, Inc., 169 Ga. App. 161, 312 S.E.2d 119 (1983); Kemira, Inc. v. Miller (In re Lemco Gypsum, Inc.), 95 Bankr. 860 (Bankr. S.D. Ga. 1989).
RESEARCH REFERENCES
Am. Jur. 2d.
- 67 Am. Jur. 2d, Sales, §§ 520, 521, 527, 545.
6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:434.
U.L.A.- Uniform Commercial Code (U.L.A.) § 2-503.
ALR.
- Act done on same day as, but before another act or event, as satisfying a statutory requirement that the former must precede the latter, 21 A.L.R. 1216.
Right to deposit goods in street as incident of loading or unloading, 23 A.L.R. 816.
When instrument deemed payable at a "special place" within the provision of the Uniform Negotiable Instruments Law making ability and willingness to pay at such place equivalent to tender, 24 A.L.R. 1050.
Construction and effect of provision in contract of sale as to declaration by seller of carrier vessel, 27 A.L.R. 165.
Failure to ship by carrier designated by buyer as affecting passing of title, 31 A.L.R. 955.
Upon whom loss from theft or the like falls, where seller turns over goods at buyer's premises, 50 A.L.R.2d 330.
Applicability of UCC Article 2 to mixed contracts for sale of consumer goods and services, 1 A.L.R.7th 3.
Applicability of UCC Article 2 to mixed contracts for sale of goods and services: distributorship, franchise, and similar business contracts, 8 A.L.R.7th 4.
Applicability of UCC Article 2 to mixed contracts for sale of business goods and services: manufacturing, construction, and similar contracts, 15 A.L.R.7th 7.