Effect of Breach on Risk of Loss

1. Law
2. Georgia Code
3. Commercial Code
4. Sales
5. Performance
6. Effect of Breach on Risk of Loss

1. Where a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk of their loss remains on the seller until cure or acceptance.
2. Where the buyer rightfully revokes acceptance he may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as having rested on the seller from the beginning.
3. Where the buyer as to conforming goods already identified to the contract for sale repudiates or is otherwise in breach before risk of their loss has passed to him, the seller may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as resting on the buyer for a commercially reasonable time.

(Code 1933, § 109A-2 - 510, enacted by Ga. L. 1962, p. 156, § 1.)

Law reviews.

- For article, "Impracticability As Risk Allocation: The Effect of Changed Circumstances upon Contract Obligations for the Sale of Goods," see 22 Ga. L. Rev. 503 (1988).

JUDICIAL DECISIONS

No breach of contract established.

- Jury properly determined that the defendant did not bear the loss of a helicopter crash because there was some evidence upon which the jury could rely in concluding that the defendant did not breach the agreement between the parties and the jury made a special finding that under the aircraft purchase agreement, the risk of loss remained with the plaintiff despite the defendant's agreement to make additional repairs. Eagle Jets, LLC v. Atlanta Jet, Inc., 321 Ga. App. 386, 740 S.E.2d 439 (2013).

RESEARCH REFERENCES

Am. Jur. 2d.

- 67 Am. Jur. 2d, Sales, §§ 413, 428-430.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:487.

C.J.S.

- 77A C.J.S., Sales, § 214.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-510.

ALR.

- Applicability of provision in contract of sale for return of article, where article delivered does not answer to description, 30 A.L.R. 321.

Provisions of sales contract relating to party to bear the loss from insolvency of or breach of contract by bank through which paper representing price is routed for collection, 99 A.L.R. 1472.

Upon whom loss from theft or the like falls, where seller turns over goods at buyer's premises, 50 A.L.R.2d 330.

Who bears risk of loss of goods under UCC § 2-509 and § 2-510, 66 A.L.R.3d 145.

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