Payment by Buyer Before Inspection

1. Law
2. Georgia Code
3. Commercial Code
4. Sales
5. Performance
6. Payment by Buyer Before Inspection

1. Where the contract requires payment before inspection nonconformity of the goods does not excuse the buyer from so making payment unless:

1. The nonconformity appears without inspection; or
2. Despite tender of the required documents the circumstances would justify injunction against honor under the provisions of this title (Code Section 11-5-109).

Payment pursuant to subsection (1) of this Code section does not constitute an acceptance of goods or impair the buyer's right to inspect or any of his remedies.

(Code 1933, § 109A-2 - 512, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2002, p. 995, § 2.)

The 2002 amendment, effective July 1, 2002, substituted "(Code Section 11-5-109)" for "(Code Section 11-5-114)" at the end of paragraph (1)(b). See Editor's note for applicability.

Editor's notes.

- Ga. L. 2002, p. 995, § 8, not codified by the General Assembly, provides that: "This Act shall become effective July 1, 2002, and shall apply to a letter of credit that is issued on or after July 1, 2002. This Act does not apply to a transaction, event, obligation, or duty arising out of or associated with a letter of credit that was issued before July 1, 2002."

Law reviews.

- For article, "Buyer's Right of Rejection: A Quarter Century Under the Uniform Commercial Code, and Recent International Developments," see 13 Ga. L. Rev. 805 (1979).

JUDICIAL DECISIONS

Cited in Givens v. State, 216 Ga. App. 176, 454 S.E.2d 141 (1995).

RESEARCH REFERENCES

Am. Jur. 2d.

- 67 Am. Jur. 2d, Sales, § 618.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:417.

C.J.S.

- 77A C.J.S., Sales, § 209.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-512.

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