Table of Contents
Sec. 42a-2-101. Short title: Uniform Commercial Code−Sales.
Sec. 42a-2-102. Scope; certain security and other transactions excluded from this article.
Sec. 42a-2-103. Definitions and index of definitions.
Sec. 42a-2-104. Definitions: "Merchant"; "between merchants"; "financing agency".
Sec. 42a-2-105. Definitions: Transferability; "goods"; "future" goods; "lot"; "commercial
unit".
Sec. 42a-2-106. Definitions: "Contract"; "agreement"; "contract for sale"; "sale"; "present sale"; "conforming" to contract; "termination"; "cancellation".
Sec. 42a-2-107. Goods to be severed from realty; recording.
Sec. 42a-2-201. Formal requirements; statute of frauds.
Sec. 42a-2-202. Final written expression: Parol or extrinsic evidence.
Sec. 42a-2-203. Seals inoperative.
Sec. 42a-2-204. Formation in general.
Sec. 42a-2-205. Firm offers.
Sec. 42a-2-206. Offer and acceptance in formation of contract.
Sec. 42a-2-207. Additional terms in acceptance or confirmation.
Sec. 42a-2-208. Course of performance or practical construction.
Sec. 42a-2-209. Modification, rescission and waiver.
Sec. 42a-2-210. Delegation of performance; assignment of rights.
Sec. 42a-2-301. General obligations of parties.
Sec. 42a-2-302. Unconscionable contract or clause.
Sec. 42a-2-303. Allocation or division of risks.
Sec. 42a-2-304. Price payable in money, goods, realty, or otherwise.
Sec. 42a-2-305. Open price term.
Sec. 42a-2-306. Output, requirements and exclusive dealings.
Sec. 42a-2-307. Delivery in single lot or several lots.
Sec. 42a-2-308. Absence of specified place for delivery.
Sec. 42a-2-309. Absence of specific time provisions; notice of termination .
Sec. 42a-2-310. Open time for payment or running of credit; authority to ship under reservation.
Sec. 42a-2-311. Options and cooperation respecting performance.
Sec. 42a-2-312. Warranty of title and against infringement; buyer's obligation against
infringement.
Sec. 42a-2-313. Express warranties by affirmation, promise, description, sample.
Sec. 42a-2-314. Implied warranty: merchantability; usage of trade.
Sec. 42a-2-315. Implied warranty: fitness for particular purpose.
Sec. 42a-2-316. Exclusion or modification of warranties.
Sec. 42a-2-317. Cumulation and conflict of warranties express or implied.
Sec. 42a-2-318. Third party beneficiaries of seller's warranties whether express or implied.
Sec. 42a-2-319. F.O.B. and F.A.S. terms.
Sec. 42a-2-320. C.I.F. and C. & F. terms.
Sec. 42a-2-321. C.I.F. or C. & F.: "Net landed weights"; "payment on arrival"; warranty
of condition on arrival.
Sec. 42a-2-322. Delivery "ex-ship".
Sec. 42a-2-323. Form of bill of lading required in overseas shipment; "overseas".
Sec. 42a-2-324. "No arrival, no sale" term.
Sec. 42a-2-325. "Letter of credit" term; "confirmed credit".
Sec. 42a-2-326. Sale on approval and sale or return; consignment sales and rights of
creditors.
Sec. 42a-2-327. Special incidents of sale on approval and sale or return.
Sec. 42a-2-328. Sale by auction.
Sec. 42a-2-401. Passing of title; reservation for security; limited application of this
section.
Sec. 42a-2-402. Rights of seller's creditors against sold goods; right of certain buyers
and lessors of goods to file under article 9.
Sec. 42a-2-403. Power to transfer; good faith purchase of goods; "entrusting".
Sec. 42a-2-501. Insurable interest in goods; manner of identification of goods.
Sec. 42a-2-502. Buyer's right to goods on seller's insolvency.
Sec. 42a-2-503. Manner of seller's tender of delivery.
Sec. 42a-2-504. Shipment by seller.
Sec. 42a-2-505. Seller's shipment under reservation.
Sec. 42a-2-506. Rights of financing agency.
Sec. 42a-2-507. Effect of seller's tender; delivery on condition.
Sec. 42a-2-508. Cure by seller of improper tender or delivery; replacement.
Sec. 42a-2-509. Risk of loss in the absence of breach.
Sec. 42a-2-510. Effect of breach on risk of loss.
Sec. 42a-2-511. Tender of payment by buyer; payment by check.
Sec. 42a-2-512. Payment by buyer before inspection.
Sec. 42a-2-513. Buyer's right to inspection of goods.
Sec. 42a-2-514. When documents deliverable on acceptance; when on payment.
Sec. 42a-2-515. Preserving evidence of goods in dispute.
Sec. 42a-2-601. Buyer's rights on improper delivery.
Sec. 42a-2-602. Manner and effect of rightful rejection.
Sec. 42a-2-603. Merchant buyer's duties as to rightfully rejected goods.
Sec. 42a-2-604. Buyer's options as to salvage of rightfully rejected goods when seller
gives no instructions.
Sec. 42a-2-605. Waiver of buyer's objections by failure to particularize.
Sec. 42a-2-606. What constitutes acceptance of goods.
Sec. 42a-2-607. Effect of acceptance; notice of breach; burden of establishing breach
after acceptance; notice of claim or litigation to person answerable over.
Sec. 42a-2-608. Revocation of acceptance in whole or in part.
Sec. 42a-2-609. Right to adequate assurance of performance.
Sec. 42a-2-610. Anticipatory repudiation.
Sec. 42a-2-611. Retraction of anticipatory repudiation.
Sec. 42a-2-612. "Installment contract"; breach.
Sec. 42a-2-613. Casualty to identified goods.
Sec. 42a-2-614. Substituted performance.
Sec. 42a-2-615. Excuse by failure of presupposed conditions.
Sec. 42a-2-616. Procedure on notice claiming excuse.
Sec. 42a-2-701. Remedies for breach of collateral contracts not impaired.
Sec. 42a-2-702. Seller's remedies on discovery of buyer's insolvency.
Sec. 42a-2-703. Seller's remedies in general.
Sec. 42a-2-704. Seller's right to identify goods to the contract notwithstanding breach
or to salvage unfinished goods.
Sec. 42a-2-705. Seller's stoppage of delivery in transit or otherwise.
Sec. 42a-2-706. Seller's resale including contract for resale.
Sec. 42a-2-707. "Person in the position of a seller".
Sec. 42a-2-708. Seller's damages for nonacceptance or repudiation.
Sec. 42a-2-709. Action for the price.
Sec. 42a-2-710. Seller's incidental damages.
Sec. 42a-2-711. Buyer's remedies in general; buyer's security interest in rejected goods.
Sec. 42a-2-712. "Cover"; buyer's procurement of substitute goods.
Sec. 42a-2-713. Buyer's damages for nondelivery or repudiation.
Sec. 42a-2-714. Buyer's damages for breach in regard to accepted goods.
Sec. 42a-2-715. Buyer's incidental and consequential damages.
Sec. 42a-2-716. Buyer's right to specific performance or replevin.
Sec. 42a-2-717. Deduction of damages from the price.
Sec. 42a-2-718. Liquidation or limitation of damages; deposits.
Sec. 42a-2-719. Contractual modification or limitation of remedy.
Sec. 42a-2-720. Effect of "cancellation" or "rescission" on claims for antecedent breach.
Sec. 42a-2-721. Remedies for fraud.
Sec. 42a-2-722. Who can sue third parties for injury to goods.
Sec. 42a-2-723. Proof of market price; time and place.
Sec. 42a-2-724. Admissibility of market quotations.
Sec. 42a-2-725. Statute of limitations in contracts for sale.
SHORT TITLE, GENERAL CONSTRUCTION AND SUBJECT MATTER
Sec. 42a-2-101. Short title: Uniform Commercial Code−Sales. This article shall
be known and may be cited as "Uniform Commercial Code−Sales". Sec. 42a-2-102. Scope; certain security and other transactions excluded from
this article. Unless the context otherwise requires, this article applies to transactions in
goods; it does not apply to any transaction which although in the form of an unconditional
contract to sell or present sale is intended to operate only as a security transaction nor
does this article impair or repeal any statute regulating sales to consumers, farmers or
other specified classes of buyers. Sec. 42a-2-103. Definitions and index of definitions. (1) In this article unless the
context otherwise requires: (a) "Buyer" means a person who buys or contracts to buy
goods. (b) "Good faith" in the case of a merchant means honesty in fact and the observance of reasonable commercial standards of fair dealing in the trade. (c) "Receipt" of
goods means taking physical possession of them. (d) "Seller" means a person who sells
or contracts to sell goods. Sec. 42a-2-104. Definitions: "Merchant"; "between merchants"; "financing
agency". (1) "Merchant" means a person who deals in goods of the kind or otherwise
by his occupation holds himself out as having knowledge or skill peculiar to the practices
or goods involved in the transaction or to whom such knowledge or skill may be attributed by his employment of an agent or broker or other intermediary who by his occupation holds himself out as having such knowledge or skill. Sec. 42a-2-105. Definitions: Transferability; "goods"; "future" goods; "lot";
"commercial unit". (1) "Goods" means all things, including specially manufactured
goods, which are movable at the time of identification to the contract for sale other than
the money in which the price is to be paid, investment securities covered by article 8
and things in action. "Goods" also includes the unborn young of animals and growing
crops and other identified things attached to realty as described in section 42a-2-107. Sec. 42a-2-106. Definitions: "Contract"; "agreement"; "contract for sale";
"sale"; "present sale"; "conforming" to contract; "termination"; "cancellation".
(1) In this article unless the context otherwise requires "contract" and "agreement" are
limited to those relating to the present or future sale of goods. "Contract for sale" includes
both a present sale of goods and a contract to sell goods at a future time. A "sale" consists
in the passing of title from the seller to the buyer for a price as provided by section
42a-2-401. A "present sale" means a sale which is accomplished by the making of the
contract. Sec. 42a-2-107. Goods to be severed from realty; recording. (1) A contract for
the sale of minerals or the like, including oil and gas, or a structure or its materials to
be removed from realty is a contract for the sale of goods within this article if they are
to be severed by the seller but until severance a purported present sale thereof which is
not effective as a transfer of an interest in land is effective only as a contract to sell. Sec. 42a-2-201. Formal requirements; statute of frauds. (1) Except as otherwise
provided in this section a contract for the sale of goods for the price of five hundred
dollars or more is not enforceable by way of action or defense unless there is some
writing sufficient to indicate that a contract for sale has been made between the parties
and signed by the party against whom enforcement is sought or by his authorized agent
or broker. A writing is not insufficient because it omits or incorrectly states a term agreed
upon but the contract is not enforceable under this paragraph beyond the quantity of
goods shown in such writing. Sec. 42a-2-202. Final written expression: Parol or extrinsic evidence. Terms
with respect to which the confirmatory memoranda of the parties agree or which are
otherwise set forth in a writing intended by the parties as a final expression of their
agreement with respect to such terms as are included therein may not be contradicted
by evidence of any prior agreement or of a contemporaneous oral agreement but may
be explained or supplemented (a) by course of dealing or usage of trade as provided by
section 42a-1-205 or by course of performance as provided by section 42a-2-208; and
(b) by evidence of consistent additional terms unless the court finds the writing to have
been intended also as a complete and exclusive statement of the terms of the agreement. Sec. 42a-2-203. Seals inoperative. The affixing of a seal to a writing evidencing
a contract for sale or an offer to buy or sell goods does not constitute the writing a sealed
instrument and the law with respect to sealed instruments does not apply to such a
contract or offer. Sec. 42a-2-204. Formation in general. (1) A contract for sale of goods may be
made in any manner sufficient to show agreement, including conduct by both parties
which recognizes the existence of such a contract. Sec. 42a-2-205. Firm offers. An offer by a merchant to buy or sell goods in a signed
writing which by its terms gives assurance that it will be held open is not revocable, for
lack of consideration, during the time stated or if no time is stated for a reasonable time,
but in no event may such period of irrevocability exceed three months; but any such
term of assurance on a form supplied by the offeree must be separately signed by the
offeror. Sec. 42a-2-206. Offer and acceptance in formation of contract. (1) Unless
otherwise unambiguously indicated by the language or circumstances, (a) an offer to
make a contract shall be construed as inviting acceptance in any manner and by any
medium reasonable in the circumstances; (b) an order or other offer to buy goods for
prompt or current shipment shall be construed as inviting acceptance either by a prompt
promise to ship or by the prompt or current shipment of conforming or nonconforming
goods, but such a shipment of nonconforming goods does not constitute an acceptance
if the seller seasonably notifies the buyer that the shipment is offered only as an accommodation to the buyer. Sec. 42a-2-207. Additional terms in acceptance or confirmation. (1) A definite
and seasonable expression of acceptance or a written confirmation which is sent within
a reasonable time operates as an acceptance even though it states terms additional to
or different from those offered or agreed upon, unless acceptance is expressly made
conditional on assent to the additional or different terms. Sec. 42a-2-208. Course of performance or practical construction. (1) Where
the contract for sale involves repeated occasions for performance by either party with
knowledge of the nature of the performance and opportunity for objection to it by the
other, any course of performance accepted or acquiesced in without objection shall be
relevant to determine the meaning of the agreement. Sec. 42a-2-209. Modification, rescission and waiver. (1) An agreement modifying a contract within this article needs no consideration to be binding. Sec. 42a-2-210. Delegation of performance; assignment of rights. (1) A party
may perform his duty through a delegate unless otherwise agreed or unless the other
party has a substantial interest in having his original promisor perform or control the
acts required by the contract. No delegation of performance relieves the party delegating
of any duty to perform or any liability for breach. Sec. 42a-2-301. General obligations of parties. The obligation of the seller is to
transfer and deliver and that of the buyer is to accept and pay in accordance with the
contract. Sec. 42a-2-302. Unconscionable contract or clause. (1) If the court as a matter
of law finds the contract or any clause of the contract to have been unconscionable at
the time it was made the court may refuse to enforce the contract, or it may enforce the
remainder of the contract without the unconscionable clause, or it may so limit the
application of any unconscionable clause as to avoid any unconscionable result. Sec. 42a-2-303. Allocation or division of risks. Where this article allocates a risk
or a burden as between the parties "unless otherwise agreed", the agreement may not
only shift the allocation but may also divide the risk or burden. Sec. 42a-2-304. Price payable in money, goods, realty, or otherwise. (1) The
price can be made payable in money or otherwise. If it is payable in whole or in part in
goods each party is a seller of the goods which he is to transfer. Sec. 42a-2-305. Open price term. (1) The parties if they so intend can conclude
a contract for sale even though the price is not settled. In such a case the price is a
reasonable price at the time for delivery if (a) nothing is said as to price; or (b) the price
is left to be agreed by the parties and they fail to agree; or (c) the price is to be fixed in
terms of some agreed market or other standard as set or recorded by a third person or
agency and it is not so set or recorded. Sec. 42a-2-306. Output, requirements and exclusive dealings. (1) A term which
measures the quantity by the output of the seller or the requirements of the buyer means
such actual output or requirements as may occur in good faith, except that no quantity
unreasonably disproportionate to any stated estimate or in the absence of a stated estimate to any normal or otherwise comparable prior output or requirements may be tendered or demanded. Sec. 42a-2-307. Delivery in single lot or several lots. Unless otherwise agreed
all goods called for by a contract for sale must be tendered in a single delivery and
payment is due only on such tender but where the circumstances give either party the
right to make or demand delivery in lots the price if it can be apportioned may be
demanded for each lot. Sec. 42a-2-308. Absence of specified place for delivery. Unless otherwise
agreed, (a) the place for delivery of goods is the seller's place of business or if he has none
his residence; but (b) in a contract for sale of identified goods which to the knowledge of
the parties at the time of contracting are in some other place, that place is the place for
their delivery; and (c) documents of title may be delivered through customary banking
channels. Sec. 42a-2-309. Absence of specific time provisions; notice of termination . (1)
The time for shipment or delivery or any other action under a contract if not provided
in this article or agreed upon shall be a reasonable time. Sec. 42a-2-310. Open time for payment or running of credit; authority to ship
under reservation. Unless otherwise agreed, (a) 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 (b) if the seller is authorized to send the goods he 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; and (c) if delivery is authorized and made by way of documents
of title otherwise than by subsection (b) then payment is due at the time and place at
which the buyer is to receive the documents regardless of where the goods are to be
received; and (d) where the seller is required or authorized to ship the goods on credit
the credit period runs from the time of shipment but postdating the invoice or delaying
its dispatch will correspondingly delay the starting of the credit period. Sec. 42a-2-311. Options and cooperation respecting performance. (1) An
agreement for sale which is otherwise sufficiently definite to be a contract is not made
invalid by the fact that it leaves particulars of performance to be specified by one of the
parties. Any such specification must be made in good faith and within limits set by
commercial reasonableness. Sec. 42a-2-312. Warranty of title and against infringement; buyer's obligation
against infringement. (1) Subject to subsection (2) there is in a contract for sale a
warranty by the seller that (a) the title conveyed shall be good, and its transfer rightful;
and (b) the goods shall be delivered free from any security interest or other lien or
encumbrance of which the buyer at the time of contracting has no knowledge. Sec. 42a-2-313. Express warranties by affirmation, promise, description, sample. (1) Express warranties by the seller are created as follows: (a) Any affirmation of
fact or promise made by the seller to the buyer which relates to the goods and becomes
part of the basis of the bargain creates an express warranty that the goods shall conform
to the affirmation or promise. (b) Any description of the goods which is made part of
the basis of the bargain creates an express warranty that the goods shall conform to the
description. (c) Any sample or model which is made part of the basis of the bargain
creates an express warranty that the whole of the goods shall conform to the sample or
model. Sec. 42a-2-314. Implied warranty: merchantability; usage of trade. (1) Unless
excluded or modified as provided by section 42a-2-316, a warranty that the goods shall
be merchantable is implied in a contract for their sale if the seller is a merchant with
respect to goods of that kind. Under this section the serving for value of food or drink
to be consumed either on the premises or elsewhere is a sale. Sec. 42a-2-315. Implied warranty: fitness for particular purpose. Where the
seller at the time of contracting has reason to know any particular purpose for which
the goods are required and that the buyer is relying on the seller's skill or judgment to
select or furnish suitable goods, there is unless excluded or modified under section 42a-
2-316 an implied warranty that the goods shall be fit for such purpose. Sec. 42a-2-316. Exclusion or modification of warranties. (1) Words or conduct
relevant to the creation of an express warranty and words or conduct tending to negate
or limit warranty shall be construed wherever reasonable as consistent with each other;
but subject to the provisions of this article on parol or extrinsic evidence negation or
limitation is inoperative to the extent that such construction is unreasonable. Sec. 42a-2-317. Cumulation and conflict of warranties express or implied.
Warranties whether express or implied shall be construed as consistent with each other
and as cumulative, but if such construction is unreasonable the intention of the parties
shall determine which warranty is dominant. In ascertaining that intention the following
rules apply: (a) Exact or technical specifications displace an inconsistent sample or
model or general language of description. (b) A sample from an existing bulk displaces
inconsistent general language of description. (c) Express warranties displace inconsistent implied warranties other than an implied warranty of fitness for a particular purpose. Sec. 42a-2-318. Third party beneficiaries of seller's warranties whether express or implied. A seller's warranty whether express or implied extends to any natural
person who is in the family or household of his buyer or who is a guest in his home if
it is reasonable to expect that such person may use, consume or be affected by the goods
and who is injured in person by breach of warranty. This section is neutral with respect
to case law or statutory law extending warranties for personal injuries to other persons.
A seller may not exclude or limit the operation of this section. Sec. 42a-2-319. F.O.B. and F.A.S. terms. (1) Unless otherwise agreed the term
F.O.B., which means "free on board", at a named place, even though used only in connection with the stated price, is a delivery term under which (a) when the term is F.O.B.
the place of shipment, the seller must at that place ship the goods in the manner provided
in section 42a-2-504 and bear the expense and risk of putting them into the possession
of the carrier; or (b) when the term is F.O.B. the place of destination, the seller must at
his own expense and risk transport the goods to that place and there tender delivery of
them in the manner provided in section 42a-2-503; (c) when under either (a) or (b) the
term is also F.O.B. vessel, car or other vehicle, the seller must in addition at his own
expense and risk load the goods on board. If the term is F.O.B. vessel the buyer must
name the vessel and in an appropriate case the seller must comply with the provisions
of section 42a-2-323 on the form of bill of lading. Sec. 42a-2-320. C.I.F. and C. & F. terms. (1) The term C.I.F. means that the price
includes in a lump sum the cost of the goods and the insurance and freight to the named
destination. The term C. & F. or C.F. means that the price so includes cost and freight
to the named destination. Sec. 42a-2-321. C.I.F. or C. & F.: "Net landed weights"; "payment on arrival";
warranty of condition on arrival. Under a contract containing a term C.I.F. or C. & F.: Sec. 42a-2-322. Delivery "ex-ship". (1) Unless otherwise agreed a term for delivery of goods "ex-ship", which means from the carrying vessel, or in equivalent language
is not restricted to a particular ship and requires delivery from a ship which has reached
a place at the named port of destination where goods of the kind are usually discharged. Sec. 42a-2-323. Form of bill of lading required in overseas shipment; "overseas". (1) Where the contract contemplates overseas shipment and contains a term C.I.F.
or C. & F. or F.O.B. vessel, the seller unless otherwise agreed must obtain a negotiable
bill of lading stating that the goods have been loaded on board or, in the case of a term
C.I.F. or C. & F., received for shipment. Sec. 42a-2-324. "No arrival, no sale" term. Under a term "no arrival, no sale"
or terms of like meaning, unless otherwise agreed, (a) the seller must properly ship
conforming goods and if they arrive by any means he must tender them on arrival but
he assumes no obligation that the goods will arrive unless he has caused the nonarrival;
and (b) where without fault of the seller the goods are in part lost or have so deteriorated
as no longer to conform to the contract or arrive after the contract time, the buyer may
proceed as if there had been casualty to identified goods, as provided by section 42a-
2-613. Sec. 42a-2-325. "Letter of credit" term; "confirmed credit". (1) Failure of the
buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale. Sec. 42a-2-326. Sale on approval and sale or return; consignment sales and
rights of creditors. (1) Unless otherwise agreed, if delivered goods may be returned
by the buyer even though they conform to the contract, the transaction is (a) a "sale on
approval" if the goods are delivered primarily for use, and (b) a "sale or return" if the
goods are delivered primarily for resale. Sec. 42a-2-327. Special incidents of sale on approval and sale or return. (1)
Under a sale on approval unless otherwise agreed (a) although the goods are identified
to the contract the risk of loss and the title do not pass to the buyer until acceptance;
and (b) use of the goods consistent with the purpose of trial is not acceptance but failure
seasonably to notify the seller of election to return the goods is acceptance, and if the
goods conform to the contract acceptance of any part is acceptance of the whole; and
(c) after due notification of election to return, the return is at the seller's risk and expense
but a merchant buyer must follow any reasonable instructions. Sec. 42a-2-328. Sale by auction. (1) In a sale by auction if goods are put up in lots
each lot is the subject of a separate sale. Sec. 42a-2-401. Passing of title; reservation for security; limited application
of this section. Each provision of this article with regard to the rights, obligations and
remedies of the seller, the buyer, purchasers or other third parties applies irrespective
of title to the goods except where the provision refers to such title. Insofar as situations
are not covered by the other provisions of this article and matters concerning title become
material the following rules apply: Sec. 42a-2-402. Rights of seller's creditors against sold goods; right of certain
buyers and lessors of goods to file under article 9. (1) Except as provided in the
following subsections, rights of unsecured creditors of the seller with respect to goods
which have been identified to a contract for sale are subject to the buyer's rights to
recover the goods under sections 42a-2-502 and 42a-2-716. Sec. 42a-2-403. Power to transfer; good faith purchase of goods; "entrusting".
(1) A purchaser of goods acquires all title which his transferor had or had power to
transfer except that a purchaser of a limited interest acquires rights only to the extent
of the interest purchased. A person with voidable title has power to transfer a good title
to a good faith purchaser for value. When goods have been delivered under a transaction
of purchase the purchaser has such power even though (a) the transferor was deceived
as to the identity of the purchaser, or (b) the delivery was in exchange for a check which
is later dishonored, or (c) it was agreed that the transaction was to be a "cash sale", or (d)
the delivery was procured through fraud punishable as larcenous under the criminal law. Sec. 42a-2-501. Insurable interest in goods; manner of identification of goods.
(1) The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers even though the goods
so identified are nonconforming and he has an option to return or reject them. Such
identification can be made at any time and in any manner explicitly agreed to by the
parties. In the absence of explicit agreement identification occurs (a) when the contract
is made if it is for the sale of goods already existing and identified; (b) if the contract
is for the sale of future goods other than those described in paragraph (c), when goods
are shipped, marked or otherwise designated by the seller as goods to which the contract
refers; (c) when the crops are planted or otherwise become growing crops or the young
are conceived if the contract is for the sale of unborn young to be born within twelve
months after contracting or for the sale of crops to be harvested within twelve months
or the next normal harvest season after contracting, whichever is longer. Sec. 42a-2-502. Buyer's right to goods on seller's insolvency. (1) Subject to subsection (2) and even though the goods have not been shipped a buyer who has paid a
part or all of the price of goods in which he has a special property under the provisions
of the immediately preceding section may on making and keeping good a tender of any
unpaid portion of their price recover them from the seller if the seller becomes insolvent
within ten days after receipt of the first installment on their price. Sec. 42a-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 this article, 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. Sec. 42a-2-504. Shipment by seller. Where the seller is required or authorized to
send the goods to the buyer and the contract does not require him to deliver them at a
particular destination, then unless otherwise agreed he must (a) put the goods in the
possession of such a carrier and make such a contract for their transportation as may be
reasonable having regard to the nature of the goods and other circumstances of the case;
and (b) obtain and promptly deliver or tender in due form any document necessary to
enable the buyer to obtain possession of the goods or otherwise required by the agreement
by usage of trade; and (c) promptly notify the buyer of the shipment. Failure to notify
the buyer under paragraph (c) or to make a proper contract under paragraph (a) is a
ground for rejection only if material delay or loss ensues. Sec. 42a-2-505. Seller's shipment under reservation. (1) Where the seller has
identified goods to the contract by or before shipment: (a) His procurement of a negotiable bill of lading to his own order or otherwise reserves in him a security interest in the
goods. His procurement of the bill to the order of a financing agency or of the buyer
indicates in addition only the seller's expectation of transferring that interest to the
person named. (b) A nonnegotiable bill of lading to himself or his nominee reserves
possession of the goods as security but except in a case of conditional delivery as provided by subsection (2) of section 42a-2-507 a nonnegotiable bill of lading naming the
buyer as consignee reserves no security interest even though the seller retains possession
of the bill of lading. Sec. 42a-2-506. Rights of financing agency. (1) A financing agency by paying
or purchasing for value a draft which relates to a shipment of goods acquires to the
extent of the payment or purchase and in addition to its own rights under the draft and
any document of title securing it any rights of the shipper in the goods including the
right to stop delivery and the shipper's right to have the draft honored by the buyer. Sec. 42a-2-507. Effect of seller's tender; delivery on condition. (1) Tender of
delivery is a condition to the buyer's duty to accept the goods and, unless otherwise
agreed, to his duty to pay for them. Tender entitles the seller to acceptance of the goods
and to payment according to the contract.
(1959, P.A. 133, S. 2-101.)
Cited. 165 C. 300, 307.
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(1959, P.A. 133, S. 2-102.)
Cited. 165 C. 300, 307. Cited. 182 C. 561, 563. Cited. 184 C. 10, 13; Id., 607, 616. Cited. 187 C. 540, 542.
Use of products involved in a beauty treatment does not amount to a sale of goods but to a rendition of services. 25 CS
114. Contract to furnish labor and materials is not a "transaction in goods" within meaning of this section. 33 CS 108, 110,
113. Cited. 41 CS 466, 469.
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(2) Other definitions applying to this article or to specified parts thereof and the
sections in which they appear are:
"Acceptance". Section 42a-2-606.
"Banker's credit". Section 42a-2-305.
"Between merchants". Section 42a-2-104.
"Cancellation". Section 42a-2-106(4).
"Commercial unit". Section 42a-2-105.
"Confirmed credit". Section 42a-2-325.
"Conforming to contract". Section 42a-2-106.
"Contract for sale". Section 42a-2-106.
"Cover". Section 42a-2-712.
"Entrusting". Section 42a-2-403.
"Financing agency". Section 42a-2-104.
"Future goods". Section 42a-2-105.
"Goods". Section 42a-2-105.
"Identification". Section 42a-2-501.
"Installment contract". Section 42a-2-612.
"Letter of credit". Section 42a-2-325.
"Lot". Section 42a-2-105.
"Merchant". Section 42a-2-104.
"Overseas". Section 42a-2-323.
"Person in position of seller". Section 42a-2-707.
"Present sale". Section 42a-2-106.
"Sale". Section 42a-2-106.
"Sale on approval". Section 42a-2-326.
"Sale or return". Section 42a-2-326.
"Termination". Section 42a-2-106.
(3) The following definitions in other articles apply to this article:
"Check". Section 42a-3-104.
"Consignee". Section 42a-7-102.
"Consignor". Section 42a-7-102.
"Consumer goods". Section 42a-9-109.
"Dishonor". Section 42a-3-502.
"Draft". Section 42a-3-104.
(4) In addition article 1 contains general definitions and principles of construction
and interpretation applicable throughout this article.
(1959, P.A. 133, S. 2-103; May Sp. Sess. P.A. 92-11, S. 13, 70.)
History: May Sp. Sess. P.A. 92-11 amended Subsec. (3) to replace Sec. 42a-3-507 as the statutory reference for the
definition of "Dishonor" with Sec. 42a-3-502.
Cited. 26 CS 222.
Subsec. (1):
Subdiv. (d) cited. 172 C. 112, 124. Subdiv. (b) cited. 187 C. 637, 642. Subdiv. (d) cited. 216 C. 65, 83.
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(2) "Financing agency" means a bank, finance company or other person who in the
ordinary course of business makes advances against goods or documents of title or who
by arrangement with either the seller or the buyer intervenes in ordinary course to make
or collect payment due or claimed under the contract for sale, as by purchasing or paying
the seller's draft or making advances against it or by merely taking it for collection
whether or not documents of title accompany the draft. "Financing agency" includes
also a bank or other person who similarly intervenes between persons who are in the
position of seller and buyer in respect to the goods as provided by section 42a-2-707.
(3) "Between merchants" means in any transaction with respect to which both parties are chargeable with the knowledge or skill of merchants.
(1959, P.A. 133, S. 2-104.)
Person who holds himself out to have special skills may be considered merchant. 160 C. 468.
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(2) Goods must be both existing and identified before any interest in them can pass.
Goods which are not both existing and identified are "future" goods. A purported present
sale of future goods or of any interest therein operates as a contract to sell.
(3) There may be a sale of a part interest in existing identified goods.
(4) An undivided share in an identified bulk of fungible goods is sufficiently identified to be sold although the quantity of the bulk is not determined. Any agreed proportion
of such a bulk or any quantity thereof agreed upon by number, weight or other measure
may to the extent of the seller's interest in the bulk be sold to the buyer who then becomes
an owner in common.
(5) "Lot" means a parcel or a single article which is the subject matter of a separate
sale or delivery, whether or not it is sufficient to perform the contract.
(6) "Commercial unit" means such a unit of goods as by commercial usage is a
single whole for purposes of sale and division of which materially impairs its character
or value on the market or in use. A commercial unit may be a single article, as a machine,
or a set of articles, as a suite or furniture or an assortment of sizes, or a quantity, as a
bale, gross, or carload, or any other unit treated in use or in the relevant market as a
single whole.
(1959, P.A. 133, S. 2-105.)
Cited. 165 C. 300, 308.
Use of products involved in a beauty treatment does not amount to a sale of goods but to a rendition of services. 25 CS
114. Cited. 41 CS 179, 183.
Cited. 6 Conn. Cir. Ct. 482.
Subsec. (1):
Cited. 212 C. 167, 171.
Cited. 28 CS 481. Contract to furnish labor and materials is not sale of "goods" under this section. 33 CS 108, 111,
113. Cited. 37 CS 735, 740. Cited. 41 CS 566, 569.
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(2) Goods or conduct including any part of a performance are "conforming" or
conform to the contract when they are in accordance with the obligations under the
contract.
(3) "Termination" occurs when either party pursuant to a power created by
agreement or law puts an end to the contract otherwise than for its breach. On "termination" all obligations which are still executory on both sides are discharged but any right
based on prior breach or performance survives.
(4) "Cancellation" occurs when either party puts an end to the contract for breach
by the other and its effect is the same as that of "termination" except that the cancelling
party also retains any remedy for breach of the whole contract or any unperformed
balance.
(1959, P.A. 133, S. 2-106.)
Annotations to former statute (1958 Rev., S. 42-4):
Contract to sell goods to be manufactured is a contract of sale. 98 C. 563. A provision by which title to equipment
placed on car by vendee will pass to vendor is contract for sale of future goods and valid under this act. 115 C. 191.
Annotations to present section:
Cited. 163 C. 62. Cited. 214 C. 444, 450.
Cited. 25 CS 111.
Subsec. (1):
Cited. 183 C. 266, 270, 278.
Cited. 26 CS 221. Cited. 37 CS 735, 739.
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(2) A contract for the sale apart from the land of growing crops or other things
attached to realty and capable of severance without material harm thereto but not described in subsection (1) or of timber to be cut is a contract for the sale of goods within
this article whether the subject matter is to be severed by the buyer or by the seller even
though it forms part of the realty at the time of contracting, and the parties can by
identification effect a present sale before severance.
(3) The provisions of this section are subject to any third party rights provided by
the law relating to realty records, and the contract for sale may be executed and recorded
as a document transferring an interest in land and shall then constitute notice to third
parties of the buyer's rights under the contract for sale.
(1959, P.A. 133, S. 2-107; P.A. 76-369, S. 4, 5.)
History: P.A. 76-369 deleted reference to contracts for sale of timber in Subsec. (1) but added reference to such contracts
in Subsec. (2) and specifically included contracts for sale of oil and gas in Subsec. (1).
Subsec. (1):
Cited. 174 C. 535, 540, 541.
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FORM, FORMATION AND READJUSTMENT OF CONTRACT
(2) Between merchants if within a reasonable time a writing in confirmation of the
contract and sufficient against the sender is received and the party receiving it has reason
to know its contents, it satisfies the requirements of subsection (1) against such party
unless written notice of objection to its contents is given within ten days after it is
received.
(3) A contract which does not satisfy the requirements of subsection (1) but which
is valid in other respects is enforceable (a) if the goods are to be specially manufactured
for the buyer and are not suitable for sale to others in the ordinary course of the seller's
business and the seller, before notice of repudiation is received and under circumstances
which reasonably indicate that the goods are for the buyer, has made either a substantial
beginning of their manufacture or commitments for their procurement; or (b) if the party
against whom enforcement is sought admits in his pleading, testimony or otherwise in
court that a contract for sale was made, but the contract is not enforceable under this
provision beyond the quantity of goods admitted; or (c) with respect to goods for which
payment has been made and accepted or which have been received and accepted as
provided by section 42a-2-606.
(1959, P.A. 133, S. 2-201.)
Cited. 174 C. 535, 541. Cited. 198 C. 624, 635.
Subsec. (3):
Subdiv. (a) cited. 183 C. 266, 270.
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(1959, P.A. 133, S. 2-202.)
Cited. 183 C. 266, 273. Cited. 198 C. 624, 636. Cited. 218 C. 281, 288; Id., 297, 304, 308. Cited. 225 C. 401, 416.
Cited. 232 C. 272, 287.
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(1959, P.A. 133, S. 2-203.)
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(2) An agreement sufficient to constitute a contract for sale may be found even
though the moment of its making is undetermined.
(3) Even though one or more terms are left open a contract for sale does not fail for
indefiniteness if the parties have intended to make a contract and there is a reasonably
certain basis for giving an appropriate remedy.
(1959, P.A. 133, S. 2-204.)
Annotations to former statutes (1958 Rev., S. 42-1, 42-3):
Under lease of mill, contract as to grain held to be one of bailment, not of sale. 70 C. 738. Contract held to be one of
consignment, though goods could be sold at less price than that fixed in contract. 71 C. 157. Sale of building to be removed
as sale of personalty. 88 C. 1. Act is declaratory of common law; furnishing food by restaurant or hotel keeper not a sale.
88 C. 314; 117 C. 131. Sale implies ownership in thing sold and transfer of that ownership to another. 92 C. 38; 100 C.
45. Company controlling flow of water held not to own water. 92 C. 38. Contract inferred from conduct. 97 C. 487; 99 C.
149; 102 C. 547. Cited. 99 C. 149. Distinction between sale and consignment. 102 C. 39.
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(1959, P.A. 133, S. 2-205.)
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(2) Where the beginning of a requested performance is a reasonable mode of acceptance an offeror who is not notified of acceptance within a reasonable time may treat the
offer as having lapsed before acceptance.
(1959, P.A. 133, S. 2-206.)
Cited. 184 C. 10, 18.
Cited. 41 CS 545, 547.
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(2) The additional terms are to be construed as proposals for addition to the contract.
Between merchants such terms become part of the contract unless: (a) The offer expressly limits acceptance to the terms of the offer; (b) they materially alter it; or (c)
notification of objection to them has already been given or is given within a reasonable
time after notice of them is received.
(3) Conduct by both parties which recognizes the existence of a contract is sufficient
to establish a contract for sale although the writings of the parties do not otherwise
establish a contract. In such case the terms of the particular contract consist of those
terms on which the writings of the parties agree, together with any supplementary terms
incorporated under any other provisions of this title.
(1959, P.A. 133, S. 2-207.)
Cited. 184 C. 10, 18.
Subsec. (2):
Subdiv. (c) cited. 202 C. 277, 287.
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(2) The express terms of the agreement and any such course of performance, as
well as any course of dealing and usage of trade, shall be construed whenever reasonable
as consistent with each other; but when such construction is unreasonable, express terms
shall control course of performance and course of performance shall control both course
of dealing and usage of trade as defined by section 42a-1-205.
(3) Subject to the provisions of the next section on modification and waiver, such
course of performance shall be relevant to show a waiver or modification of any term
inconsistent with such course of performance.
(1959, P.A. 133, S. 2-208.)
Subsec. (1):
Cited. 202 C. 277, 287.
Cited. 33 CS 108, 116.
Subsec. (2):
Cited. 160 C. 468.
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(2) A signed agreement which excludes modification or rescission except by a
signed writing cannot be otherwise modified or rescinded, but except as between merchants such a requirement on a form supplied by the merchant must be separately signed
by the other party.
(3) The requirements of section 42a-2-201 must be satisfied if the contract as modified is within its provisions.
(4) Although an attempt at modification or rescission does not satisfy the requirements of subsection (2) or (3) it can operate as a waiver.
(5) A party who has made a waiver affecting an executory portion of the contract
may retract the waiver by reasonable notification received by the other party that strict
performance will be required of any term waived, unless the retraction would be unjust
in view of a material change of position in reliance on the waiver.
(1959, P.A. 133, S. 2-209.)
Cited. 166 C. 280, 285.
Subsec. (5):
Cited. 190 C. 756, 773.
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(2) Unless otherwise agreed all rights of either seller or buyer can be assigned except
where the assignment would materially change the duty of the other party, or increase
materially the burden or risk imposed on him by his contract, or impair materially his
chance of obtaining return performance. A right to damages for breach of the whole
contract or a right arising out of the assignor's due performance of his entire obligation
can be assigned despite agreement otherwise.
(3) Unless the circumstances indicate the contrary a prohibition of assignment of
"the contract" is to be construed as barring only the delegation to the assignee of the
assignor's performance.
(4) An assignment of "the contract" or of "all my rights under the contract" or an
assignment in similar general terms is an assignment of rights and unless the language
or the circumstances, as in an assignment for security, indicate the contrary, it is a
delegation of performance of the duties of the assignor and its acceptance by the assignee
constitutes a promise by him to perform those duties. This promise is enforceable by
either the assignor or the other party to the original contract.
(5) The other party may treat any assignment which delegates performance as creating reasonable grounds for insecurity and may without prejudice to his rights against
the assignor demand assurances from the assignee as provided by section 42a-2-609.
(1959, P.A. 133, S. 2-210.)
Cited. 200 C. 172, 187.
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GENERAL OBLIGATION AND CONSTRUCTION OF CONTRACT
(1959, P.A. 133, S. 2-301.)
Annotations to former statute (1958 Rev., S. 42-41):
"Delivery" defined. 86 C. 22; 92 C. 191; 93 C. 218. Buyer cannot attach conditions to his acceptance of goods. 97 C.
210. Cited. 111 C. 711.
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(2) When it is claimed or appears to the court that the contract or any clause thereof
may be unconscionable the parties shall be afforded a reasonable opportunity to present
evidence as to its commercial setting, purpose and effect to aid the court in making the
determination.
(1959, P.A. 133, S. 2-302.)
Annotation to former statute (1958 Rev., S. 42-72):
Held that it is not contrary to public policy to permit the vendee of a conditional sales contract to waive as against an
assignee of the vendor such defenses as the vendee might have against the vendor. 21 CS 368.
Annotations to present section:
Cited. 153 C. 681, 687 (fn). Cited. 180 C. 491, 495. Cited. 189 C. 212, 225. Cited. 206 C. 454, 462. Cited. Id., 608,
616. Cited. 233 C. 304, 314. Cited. 241 C. 24.
Cited. 2 CA 119, 125. Cited. 27 CA 628, 629, 631, 632. Cited 31 CA 455, 461, 464.
Cited. 36 CS 183, 192.
Cited. 6 Conn. Cir. Ct. 540.
Subsec. (1):
Cited. 206 C. 608, 616. Cited. 216 C. 40, 61.
Cited. 31 CA 455, 460.
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(1959, P.A. 133, S. 2-303.)
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(2) Even though all or part of the price is payable in an interest in realty the transfer
of the goods and the seller's obligations with reference to them are subject to this article,
but not the transfer of the interest in realty or the transferor's obligations in connection
therewith.
(1959, P.A. 133, S. 2-304.)
Cited. 172 C. 210, 219.
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(2) A price to be fixed by the seller or by the buyer means a price for him to fix in
good faith.
(3) When a price left to be fixed otherwise than by agreement of the parties fails to
be fixed through fault of one party the other may at his option treat the contract as
cancelled or himself fix a reasonable price.
(4) Where, however, the parties intend not to be bound unless the price is fixed or
agreed and it is not fixed or agreed there is no contract. In such a case the buyer must
return any goods already received or if unable to do so must pay their reasonable value
at the time of delivery and the seller must return any portion of the price paid on account.
(1959, P.A. 133, S. 2-305.)
Annotation to former statute (1958 Rev., S. 42-8):
Sale "net to use" construed. 83 C. 65.
Annotations to present section:
Cited. 179 C. 232, 237.
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(2) A lawful agreement by either the seller or the buyer for exclusive dealing in the
kind of goods concerned imposes unless otherwise agreed an obligation by the seller to
use best efforts to supply the goods and by the buyer to use best efforts to promote
their sale.
(1959, P.A. 133, S. 2-306; February, 1965, P.A. 377, S. 1.)
History: 1965 act specified seller's obligation to use best efforts to "supply the goods" and buyer's obligation to use
best efforts "to promote their sale" rather than seller's obligation to use best efforts "to promote their sale".
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(1959, P.A. 133, S. 2-307.)
Cited. 165 C. 300, 309. Cited. 166 C. 280, 285.
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(1959, P.A. 133, S. 2-308.)
Annotations to former statute (1958 Rev., S. 42-43):
In contract for manufacture and sale of goods, place of manufacture is ordinarily place of delivery. 89 C. 260. Meaning
of expression "to be taken from car"; parol evidence to show meaning. 92 C. 639. Effect of words "ship us transit car" on
place of delivery. 94 C. 4.
Annotations to present section:
Cited. 238 C. 571.
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(2) Where the contract provides for successive performances but is indefinite in
duration it is valid for a reasonable time but unless otherwise agreed may be terminated
at any time by either party.
(3) Termination of a contract by one party except on the happening of an agreed
event requires that reasonable notification be received by the other party and an
agreement dispensing with notification is invalid if its operation would be unconscionable.
(1959, P.A. 133, S. 2-309.)
Annotations to former statute (1958 Rev., S. 42-43):
Purchase of goods for "spring shipment" considered. 69 C. 544. Delivery in a reasonable time where contract is silent.
73 C. 660; 92 C. 45. What constitutes reasonable time is a question of fact. 81 C. 573; 137 C. 111.
Annotations to present section:
Subsec. (1):
Cited. 45 CA 633.
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(1959, P.A. 133, S. 2-310.)
See Sec. 42a-2-513 re buyer's right to inspect goods.
Annotation to former statute (1958 Rev., S. 42-42):
Waiver of payment as condition precedent to consummation of sale by delivery. 92 C. 191.
Annotations to present section:
Cited. 207 C. 599, 607.
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(2) Unless otherwise agreed specifications relating to assortment of the goods are
at the buyer's option and except as otherwise provided in subsections (1) (c) and (3) of
section 42a-2-319 specifications or arrangements relating to shipment are at the seller's
option.
(3) Where such specification would materially affect the other party's performance
but is not seasonably made or where one party's cooperation is necessary to the agreed
performance of the other but is not seasonably forthcoming, the other party in addition
to all other remedies (a) is excused for any resulting delay in his own performance; and
(b) may also either proceed to perform in any reasonable manner or after the time for
a material part of his own performance treat the failure to specify or to cooperate as a
breach by failure to deliver or accept the goods.
(1959, P.A. 133, S. 2-311.)
See Sec. 42a-2-204 (3) re circumstances under which indefiniteness of contract does not cause its failure.
Where arrangements as to shipment were at option of plaintiff as seller but merchandise was at risk of buyer, refusal
of buyer's wife to receive merchandise from truck carrier unless he put them inside store did not excuse defendant from
payment of price when goods subsequently were lost. 5 Conn. Cir. Ct. 597.
Subsec. (1):
Cited. 28 CS 481.
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(2) A warranty under subsection (1) will be excluded or modified only by specific
language or by circumstances which give the buyer reason to know that the person
selling does not claim title in himself or that he is purporting to sell only such right or
title as he or a third person may have.
(3) Unless otherwise agreed a seller who is a merchant regularly dealing in goods
of the kind warrants that the goods shall be delivered free of the rightful claim of any
third person by way of infringement or the like but a buyer who furnishes specifications
to the seller must hold the seller harmless against any such claim which arises out of
compliance with the specifications.
(1959, P.A. 133, S. 2-312.)
Cited. 181 C. 592, 606.
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(2) It is not necessary to the creation of an express warranty that the seller use formal
words such as "warrant" or "guarantee" or that he have a specific intention to make a
warranty, but an affirmation merely of the value of the goods or a statement purporting to
be merely the seller's opinion or commendation of the goods does not create a warranty.
(1959, P.A. 133, S. 2-313.)
Annotations to former statutes:
(1958 Rev., S. 42-11): Parol warranty cannot be added to written agreement. 70 C. 453. Warranty does not extend to
subsequent purchasers. 83 C. 231. Warranty as to "soundness" of horse construed. 83 C. 666. Warranty of automobile that
it is in "good and running condition." 84 C. 463. That of automobile that it is in "first-class running condition." 91 C. 187.
Where there is no warranty of seeds, seller may recover though he sends wrong variety of corn seed unless his conduct
was negligent or fraudulent. 94 C. 446. An oral statement that car was 1927 model, not relied upon as an inducing cause
of purchase, and a reference in bill to model, which was mere description, are not warranties. 111 C. 298. Cited. 137 C. 250.
(1958 Rev., S. 42-15): Reaffirms common law of Connecticut. 99 C. 301. Applies where delivery is to be in instalments
whether at one time or at different times. Id., 302.
Delivery of the merchandise of the quantity, character and quality required by contract of sale by sample passed title
to buyer. Buyer may not refuse merchandise if it conforms to contract and is not defective. 16 CS 378.
Annotations to present section:
Description of warranty liability has undergone clarification in the Uniform Commercial Code, which supersedes the
Uniform Sales Act (public acts 1907, c. 212 Sec. 12 et seq., codified as chapter 731). 176 C. 97, 100. Cited. 184 C. 10, 18;
Id., 607, 616, 617. Cited. 191 C. 150, 164. Cited. 203 C. 342, 362. Cited. 216 C. 65, 83. Cited. 218 C. 297, 307.
Cited. 1 CA 690, 691. Cited. 2 CA 308, 311. Cited. 33 CA 575, 588.
Third party beneficiary of express and implied warranties was not required to give notice of their breach to manufacturer
under section 42a-2-607 as condition precedent to suit. 26 CS 223. Law of express and implied warranty is part of and
distinguished in title. Code does not relate to real property and it has virtually eliminated doctrine of caveat emptor with
regard to sale of personalty. 28 CS 476, 481. Cited. 32 CS 69.
Where receipt for payment of price of used car was plainly stamped "This car not guaranteed" and sales agreement
also had such notation and defendant's salesman said clearly car sold at agreed price could not be guaranteed, there was
no express or implied warranty in sale. 4 Conn. Cir. Ct. 685.
Subsec. (1):
Subdiv. (a) cited. 203 C. 342, 351. Subdiv. (b) cited. Id.
Subdiv. (a) cited. 27 CA 810, 815. Subdiv. (b) cited. Id.
Subdiv. (a) cited. 33 CS 108, 115; 39 CS 107, 109.
Subsec. (2):
Cited. 203 C. 342, 351.
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(2) Goods to be merchantable must be at least such as (a) pass without objection in
the trade under the contract description; and (b) in the case of fungible goods, are of
fair average quality within the description; and (c) are fit for the ordinary purposes for
which such goods are used; and (d) run, within the variations permitted by the agreement,
of even kind, quality and quantity within each unit and among all units involved; and
(e) are adequately contained, packaged, and labeled as the agreement may require; and
(f) conform to the promises or affirmations of fact made on the container or label if any.
(3) Unless excluded or modified as provided by section 42a-2-316 other implied
warranties may arise from course of dealing or usage of trade.
(1959, P.A. 133, S. 2-314.)
Annotations to former statutes:
(1958 Rev., S. 42-12): If vendee is sued in action involving title to goods and notifies and requests vendor to defend,
latter is conclusively bound by the judgment. 113 C. 542. Vendee may sue vendor before final outcome of replevin action
brought by another against vendee, but has burden of proving other's title superior to vendor's. 118 C. 476.
(1958 Rev., S. 42-14): No implied warranty as to food furnished by restaurant or hotel. 88 C. 314; 117 C. 131. Cited.
100 C. 402. A known broker's knowledge of purpose for which goods are purchased cannot raise an implied warranty if
his authority was limited to making sales. 101 C. 276. Cited. 112 C. 187. As between dealer and buyer-consumer of food
sold for immediate consumption there is an implied warranty of fitness to be eaten, including freedom from foreign
substances; applies to food in sealed can. 115 C. 258. Liability in negligence of company selling under its brands. Id., 264.
Effect of delay in use of food after receipt. 117 C. 512. Cited. 117 C. 688. Implied warranty generally limited to parties
and privies to contract. 125 C. 92. Furnishing of defective bottle of ale which exploded was a breach of warranty of
merchantable quality by brewer. 127 C. 44. Injury from eating macaroni full of bugs; expert testimony not essential;
measure of damages. Id., 227. Cited. 132 C. 439. No implied warranty as to food furnished by restaurant. 135 C. 243.
Cited. 137 C. 251; 139 C. 65. Requirements necessary to establish breach of warranty of merchantability. 147 C. 460.
Seller held to stricter rule when product is for human use. Id. Cited. 148 C. 716. To establish breach of implied warranty
of fitness, plaintiff must show both that the product contains a substance or ingredient which has a tendency to affect
injuriously an appreciable number of people and that he has in fact been harmed or injured by its use. 153 C. 137. Proof
that all permanent waving lotions generally contain basic chemicals which are of varying strengths in different brands and
that, in the strength used in some brands, the chemicals may injuriously affect some people, is not alone a reasonable basis
for a conclusion that any specific lotion, even though it contains the same basic chemicals, is not "reasonably fit" or of
"merchantable quality." Id., 139, 140. Cited. 158 C. 458.
The contract between the housewife purchasing a pie and the seller is sufficiently broad to include and cover any
reasonable use; thus there is privity of contract with the consumer though he is not the purchaser. 4 CS 276; 5 CS 499.
Subsection (4) cited. 5 CS 499. Purchasing from vending machine. 8 CS 34. Recovery allowed to purchaser in self-service
store who made her own selection of branded article. 10 CS 9; 15 CS 174. Implied warranty of wholesomeness and fitness
did not exist between dealer and buyer-consumer where plaintiff had not eaten the unfit food. 16 CS 404. Where plaintiff
was familiar with brand but asked for no special kind, implied warranty attached. 18 CS 313. No implied seller's warranty
to one who is neither the buyer of the product nor a member of the buyer's household; neither is there contract express or
implied with the manufacturer. 19 CS 188. Plaintiff who was injured by fall against windshield could not recover from
seller without alleging that the particular windshield was more dangerous than ordinary ones even though the buyer of the
car had an express warranty with seller for a special safety windshield. Id., 479. Cited. Id., 503. Former section 42-16 cited.
22 CS 211.
Annotations to present section:
Cited. 176 C. 245, 253. Cited. 181 C. 62, 63. Cited. 182 C. 561, 565. Cited. 184 C. 10, 19; Id., 607, 616. Cited. 191 C.
150, 164. Cited. 216 C. 65, 83.
Cited. 1 CA 690, 691. Cited. 2 CA 308, 311. Cited. 27 CA 688, 695; Id., 810, 817. Cited. 33 CA 575, 588.
Cited. 37 CS 735, 740. Cited. 42 CS 153, 154, 156.
Cited. 4 Conn. Cir. Ct. 344, 345. When salesman for defendant car dealer several times informed plaintiff car was sold
"as is" and "no guarantee" was stamped on sales contract and receipt given plaintiff, there was no implied warranty of
fitness in sale of the car. 4 Conn. Cir. Ct. 685.
Subsec. (1):
Cited. 203 C. 342, 352.
Where defendant restaurateur, sued by plaintiff customer who consumed defective clams, impleaded third party defendant as supplier, statute of limitations barred third party action and demurrer to third party complaint was sustained. 28
CS 385. To establish breach of implied warranty or merchantability under this section, it must be proven that the "goods"
were not merchantable at time of sale. 33 CS 108, 115, 116.
Subsec. (2):
Cited. 176 C. 245, 255. (c) cited. 176 C. 245, 254. Cited. 203 C. 342, 353.
(c) cited. 6 Conn. Cir. Ct. 482.
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(1959, P.A. 133, S. 2-315.)
Annotations to former statute (1958 Rev., S. 42-14):
Requirements necessary to establish breach of warranty of reasonable fitness. 147 C. 460. Seller held to stricter rule
when product is for human use. Id.
Annotations to present section:
Manufacturer or producer who puts commodity for personal use or consumption on market in sealed package or other
closed container should be held to have impliedly warranted to ultimate consumer that product is reasonably fit for intended
purpose and does not contain any harmful and deleterious ingredient of which due and ample warning has not been given.
Lack of privity not bar to suit. 148 C. 714 et seq. Annotation to former section 42-14: To establish breach of implied
warranty of fitness, plaintiff must show both that the product contains a substance or ingredient which has a tendency to
affect injuriously an appreciable number of people and that he has in fact been harmed or injured by its use. 153 C. 137.
Cited. 158 C. 458. Cited. 176 C. 245, 253, 254. Cited. 183 C. 266, 274. Cited. 184 C. 10, 19; Id., 607, 616, 617, 620. Cited.
191 C. 150, 164. Cited. 203 C. 342, 362. Cited. 216 C. 65, 83.
Cited. 1 CA 690, 691. Cited. 2 CA 308, 311. Cited. 27 CA 120, 121, 128; Id., 810, 817. Cited. 33 CA 575, 588.
Implied warranty is in nature of contract of personal indemnity with original purchaser and does not run with the goods.
22 CS 210. (But see 148 C. 714, cited above.) Third party beneficiary of express and implied warranties was not required
to give notice of their breach to manufacturer under section 42a-2-607 as condition precedent to suit. 26 CS 223. Cited.
28 CS 481. Cited. 32 CS 69. Cited. 37 CS 735, 740. Cited. 39 CS 107, 113.
Where defendant recommended and sold to plaintiff paint which did not adhere to surface of his house, court could
properly find a breach of implied warranty of fitness. 4 Conn. Cir. Ct. 344-346. Requirements necessary to establish breach
of warranty of reasonable fitness. Id. Where buyer was in as good position as seller to determine latent defect in used car,
and seller expressly disclaimed any warranties on the sale, buyer could not recover cost of repairs in action for breach of
warranty. 4 Conn. Cir. Ct. 685. Cited. 5 Conn. Cir. Ct. 447; 6 Conn. Cir. Ct. 541.
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(2) Subject to subsection (3), to exclude or modify the implied warranty of merchantability or any part of it the language must mention merchantability and in case of
a writing must be conspicuous, and to exclude or modify any implied warranty of fitness
the exclusion must be by a writing and conspicuous. Language to exclude all implied
warranties of fitness is sufficient if it states, for example, that "There are no warranties
which extend beyond the description on the face hereof."
(3) Notwithstanding subsection (2), (a) unless the circumstances indicate otherwise,
all implied warranties are excluded by expressions like "as is", "with all faults" or other
language which in common understanding calls the buyer's attention to the exclusion
of warranties and makes plain that there is no implied warranty; and (b) when the buyer
before entering into the contract has examined the goods or the sample or model as fully
as he desired or has refused to examine the goods there is no implied warranty with
regard to defects which an examination ought in the circumstances to have revealed to
him; and (c) an implied warranty can also be excluded or modified by course of dealing
or course of performance or usage of trade.
(4) Remedies for breach of warranty can be limited in accordance with the provisions of section 42a-2-718 on liquidation or limitation of damages and section 42a-2-
719 on contractual modification of remedy.
(5) The provisions of subsections (2), (3) and (4) shall not apply to sales of new or
unused consumer goods, except for those goods clearly marked "irregular", "factory
seconds" or "damaged". Any language, oral or written, used by a seller or manufacturer
of consumer goods, which attempts to exclude or modify any implied warranties of
merchantability and fitness for a particular purpose or to exclude or modify the consumer's remedies for breach of those warranties, shall be unenforceable.
(1959, P.A. 133, S. 2-316; P.A. 83-320.)
History: P.A. 83-320 added Subsec. (5) which prohibits the exclusion or modification of implied warranties in certain
circumstances.
See Sec. 42a-2-202 re final written expression of contract.
Cited. 184 C. 607, 616. Cited. 203 C. 342, 352. Cited. 204 C. 399, 407. Cited. 226 C. 748, 752. Cited. 241 C. 725.
Cited. 31 CA 455, 470. Cited. 33 CA 575, 578.
Cited. 32 CS 69.
Conclusion of trial court that there was no warranty express or implied in sale by defendant of car will not be disturbed
where salesman sold car "as is" and sales contract and receipt were stamped "no guarantees." 4 Conn. Cir. Ct. 683. Layman's
use of the term "guaranty" is equated to "warranty." Id. Cited. 6 Conn. Cir. Ct. 482.
Subsec. (1):
Cited. 218 C. 297, 308.
Subsec. (2):
Cited. 203 C. 342, 353. Cited. 206 C. 409, 416.
Cited. 6 Conn. Cir. Ct. 482.
Subsec. (3):
Subdiv. (c) cited. 33 CS 108, 116.
Cited. 6 Conn. Cir. Ct. 482.
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(1959, P.A. 133, S. 2-317.)
Cited. 184 C. 10, 19; Id., 607, 616.
Cited. 33 CA 575, 588.
Cited. 32 CS 69.
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(1959, P.A. 133, S. 2-318; February, 1965, P.A. 377, S. 2.)
History: 1965 act specified that "section is neutral with respect to case law or statutory law extending warranties for
personal injuries to other persons".
Cited. 148 C. 714, 716. Claim that, since statutory remedies for breach of warranty exist, rule of strict products liability
in tort should not apply, not accepted. 159 C. 496, 503. Cited. 184 C. 607, 616.
Cited. 33 CA 575, 588.
Third party beneficiary of express and implied warranties was not required to give notice of their breach to manufacturer
under section 42a-2-607 as condition precedent to suit. 26 CS 223.
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(2) Unless otherwise agreed the term F.A.S. vessel, which means "free alongside"
at a named port, even though used only in connection with the stated price, is a delivery
term under which the seller must (a) at his own expense and risk deliver the goods
alongside the vessel in the manner usual in that port or on a dock designated and provided
by the buyer; and (b) obtain and tender a receipt for the goods in exchange for which
the carrier is under a duty to issue a bill of lading.
(3) Unless otherwise agreed in any case falling within subsection (1)(a) or (c) or
subsection (2) the buyer must seasonably give any needed instructions for making delivery, including when the term is F.A.S. or F.O.B. the loading berth of the vessel and in
an appropriate case its name and sailing date. The seller may treat the failure of needed
instructions as a failure of cooperation under section 42a-2-311. He may also at his
option move the goods in any reasonable manner preparatory to delivery or shipment.
(4) Under the term F.O.B. vessel or F.A.S. unless otherwise agreed the buyer must
make payment against tender of the required documents and the seller may not tender
nor the buyer demand delivery of the goods in substitution for the documents.
(1959, P.A. 133, S. 2-319.)
Cited. 214 C. 444, 452. Cited. 238 C. 571.
Use of phrase FOB Los Angeles, meaning free on board, made this portion of agreement not only price term covering
defendant's obligation to pay freight charges between Los Angeles and Westport, but also controlling factor putting on
him risk of loss of merchandise upon delivery to the carrier. 5 Conn. Cir. Ct. 597.
Subsec. (1):
Cited. 207 C. 599, 605.
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(2) Unless otherwise agreed and even though used only in connection with the stated
price and destination, the term C.I.F. destination or its equivalent requires the seller at
his own expense and risk to (a) put the goods into the possession of a carrier at the port
for shipment and obtain a negotiable bill or bills of lading covering the entire transportation to the named destination; and (b) load the goods and obtain a receipt from the carrier
(which may be contained in the bill of lading) showing that the freight has been paid or
provided for; and (c) obtain a policy or certificate of insurance, including any war risk
insurance, of a kind and on terms then current at the port of shipment in the usual amount,
in the currency of the contract, shown to cover the same goods covered by the bill of
lading and providing for payment of loss to the order of the buyer or for the account of
whom it may concern; but the seller may add to the price the amount of the premium
for any such war risk insurance; and (d) prepare an invoice of the goods and procure
any other documents required to effect shipment or to comply with the contract; and (e)
forward and tender with commercial promptness all the documents in due form and with
any endorsement necessary to perfect the buyer's rights.
(3) Unless otherwise agreed the term C. & F. or its equivalent has the same effect
and imposes upon the seller the same obligations and risks as a C.I.F. term except the
obligation as to insurance.
(4) Under the term C.I.F. or C. & F. unless otherwise agreed the buyer must make
payment against tender of the required documents and the seller may not tender nor the
buyer demand delivery of the goods in substitution for the documents.
(1959, P.A. 133, S. 2-320.)
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(1) Where the price is based on or is to be adjusted according to "net landed weights",
"delivered weights", "out turn" quantity or quality or the like, unless otherwise agreed
the seller must reasonably estimate the price. The payment due on tender of the documents called for by the contract is the amount so estimated, but after final adjustment
of the price a settlement must be made with commercial promptness.
(2) An agreement described in subsection (1) or any warranty of quality or condition
of the goods on arrival places upon the seller the risk of ordinary deterioration, shrinkage
and the like in transportation but has no effect on the place or time of identification to
the contract for sale or delivery or on the passing of the risk of loss.
(3) Unless otherwise agreed where the contract provides for payment on or after
arrival of the goods the seller must before payment allow such preliminary inspection
as is feasible; but if the goods are lost delivery of the documents and payment are due
when the goods should have arrived.
(1959, P.A. 133, S. 2-321.)
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(2) Under such a term unless otherwise agreed (a) the seller must discharge all liens
arising out of the carriage and furnish the buyer with a direction which puts the carrier
under a duty to deliver the goods; and (b) the risk of loss does not pass to the buyer until
the goods leave the ship's tackle or are otherwise properly unloaded.
(1959, P.A. 133, S. 2-322.)
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(2) Where in a case within subsection (1) a bill of lading has been issued in a set
of parts, unless otherwise agreed if the documents are not to be sent from abroad the
buyer may demand tender of the full set; otherwise only one part of the bill of lading
need be tendered. Even if the agreement expressly requires a full set (a) due tender of
a single part is acceptable within the provisions of subsection (1) of section 42a-2-
508 on cure of improper delivery; and (b) even though the full set is demanded, if the
documents are sent from abroad the person tendering an incomplete set may nevertheless
require payment upon furnishing an indemnity which the buyer in good faith deems
adequate.
(3) A shipment by water or by air or a contract contemplating such shipment is
"overseas" insofar as by usage of trade or agreement it is subject to the commercial,
financing or shipping practices characteristic of international deep water commerce.
(1959, P.A. 133, S. 2-323.)
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(1959, P.A. 133, S. 2-324.)
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(2) The delivery to seller of a proper letter of credit suspends the buyer's obligation
to pay. If the letter of credit is dishonored, the seller may on seasonable notification to
the buyer require payment directly from him.
(3) Unless otherwise agreed the term "letter of credit" or "banker's credit" in a
contract for sale means an irrevocable credit issued by a financing agency of good repute
and, where the shipment is overseas, of good international repute. The term "confirmed
credit" means that the credit must also carry the direct obligation of such an agency
which does business in the seller's financial market.
(1959, P.A. 133, S. 2-325.)
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(2) Except as provided in subsection (3), goods held on approval are not subject to
the claims of the buyer's creditors until acceptance; goods held on sale or return are
subject to such claims while in the buyer's possession.
(3) Where goods are delivered to a person for sale and such person maintains a
place of business at which he deals in goods of the kind involved, under a name other
than the name of the person making delivery, then with respect to claims of creditors
of the person conducting the business the goods are deemed to be on sale or return. The
provisions of this subsection are applicable even though an agreement purports to reserve
title to the person making delivery until payment or resale or uses such words as "on
consignment" or "on memorandum". However, this subsection is not applicable if the
person making delivery (a) complies with an applicable law providing for a consignor's
interest or the like to be evidenced by a sign, or (b) establishes that the person conducting
the business is generally known by his creditors to be substantially engaged in selling
the goods of others, or (c) complies with the filing provisions of article 9.
(4) Any "or return" term of a contract for sale is to be treated as a separate contract
for sale within section 42a-2-201 and as contradicting the sale aspect of the contract
within the provisions of section 42a-2-202.
(1959, P.A. 133, S. 2-326.)
Cited. 183 C. 266, 274.
Cited. 34 CS 599, 601.
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(2) Under a sale or return unless otherwise agreed (a) the option to return extends
to the whole or any commercial unit of the goods while in substantially their original
condition, but must be exercised seasonably; and (b) the return is at the buyer's risk and
expense.
(1959, P.A. 133, S. 2-327.)
Cited. 183 C. 266, 274.
Cited. 34 CS 599, 601.
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(2) A sale by auction is complete when the auctioneer so announces by the fall of
the hammer or in other customary manner. Where a bid is made while the hammer is
falling in acceptance of a prior bid the auctioneer may in his discretion reopen the bidding
or declare the goods sold under the bid on which the hammer was falling.
(3) Such a sale is with reserve unless the goods are in explicit terms put up without
reserve. In an auction with reserve the auctioneer may withdraw the goods at any time
until he announces completion of the sale. In an auction without reserve, after the auctioneer calls for bids on an article or lot, that article or lot cannot be withdrawn unless
no bid is made within a reasonable time. In either case a bidder may retract his bid until
the auctioneer's announcement of completion of the sale, but a bidder's retraction does
not revive any previous bid.
(4) If the auctioneer knowingly receives a bid on the seller's behalf or the seller
makes or procures such a bid, and notice has not been given that liberty for such bidding
is reserved, the buyer may at his option avoid the sale or take the goods at the price of
the last good faith bid prior to the completion of the sale. This subsection shall not apply
to any bid at a forced sale.
(1959, P.A. 133, S. 2-328.)
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TITLE, CREDITORS AND GOOD FAITH PURCHASERS
1958 Rev., S. 42-18: Cited. 92 C. 191; 116 C. 494. Delivery to carrier as delivery to buyer. 94 C. 87. F.O.B. evidence
that title passed from vendor upon delivery to carrier. 145 C. 161.
1958 Rev., S. 42-19: Rule 1. Postponement or nonpayment of price does not prevent title passing. 74 C. 541; 86 C.
372; 92 C. 423. But provision for shipping goods in future "as directed" will. 88 C. 130. So provision for delivery on vessel
to be sent by vendee. 69 C. 551. Rule 2. Presumption of deliverable state when offered to carrier for shipment. 92 C. 424.
Rule 3. Delivery of goods on part payment of price, with option to return, held to pass title. 74 C. 675. Delivery of goods
on condition that they prove satisfactory and no notice of rejection is given within certain time does not pass title. 75 C.
467. Sale of "suitable" goods held not to give vendee sole right to determine whether goods conform to contract. 82 C.
220. A guarantee of successful operation of article does not prevent title passing. 66 C. 67. Sale on satisfaction. 91 C. 71.
"This machine to be taken for a thirty day trial" does not require notice of rejection within the thirty days. 111 C. 562.
Rule 4. Sale of oats for future delivery requires separation. 88 C. 130. Delivery to carrier as delivery to vendee. 85 C. 146;
86 C. 494; 88 C. 25; 92 C. 424. Diversion of cars en route as appropriation. 106 C. 376. Wrongful return of goods by buyer
does not revest title in seller. 97 C. 671. Cited. 129 C. 657. Rule 5. In sale by carload lot, delivery at place agreed upon,
on a track ready for unloading, is sufficient delivery. 93 C. 218. Delivery of goods to government with payment postponed
and with option to return, held to pass title. 145 C. 161. Unless it appears that parties intended otherwise, title to goods
and right to possession pass at F.O.B. point. 147 C. 76.
1958 Rev., S. 42-20: Distinguishes between reservation of title in seller for all purposes and reservation solely to secure
payment. 92 C. 424.
(1) Title to goods cannot pass under a contract for sale prior to their identification
to the contract as provided by section 42a-2-501 and unless otherwise explicitly agreed
the buyer acquires by their identification a special property as limited by this title. Any
retention or reservation by the seller of the title (property) in goods shipped or delivered
to the buyer is limited in effect to a reservation of a security interest. Subject to these
provisions and to the provisions of article 9, title to goods passes from the seller to the
buyer in any manner and on any conditions explicitly agreed on by the parties.
(2) Unless otherwise explicitly agreed title passes to the buyer at the time and place
at which the seller completes his performance with reference to the physical delivery
of the goods, despite any reservation of a security interest and even though a document
of title is to be delivered at a different time or place; and in particular and despite any
reservation of a security interest by the bill of lading (a) if the contract requires or
authorizes the seller to send the goods to the buyer but does not require him to deliver
them at destination, title passes to the buyer at the time and place of shipment; but (b)
if the contract requires delivery at destination, title passes on tender there.
(3) Unless otherwise explicitly agreed where delivery is to be made without moving
the goods, (a) if the seller is to deliver a document of title, title passes at the time when
and the place where he delivers such documents; or (b) if the goods are at the time of
contracting already identified and no documents are to be delivered, title passes at the
time and place of contracting.
(4) A rejection or other refusal by the buyer to receive or retain the goods, whether
or not justified, or a justified revocation of acceptance revests title to the goods in the
seller. Such revesting occurs by operation of law and is not a "sale".
(1959, P.A. 133, S. 2-401.)
One who delivers goods cannot retain title. 161 C. 242. Cited. 166 C. 280, 288. Cited. 198 C. 624, 629, 630, 632−635.
Cited. 25 CS 111.
Subdiv. (1):
Cited. 198 C. 624, 632, 633. Cited. 216 C. 17, 23.
Subdiv. (2):
Delivery completes performance even without certificate of title where one is required. 161 C. 388. Cited. 163 C. 62.
(a) cited. 198 C. 624, 632. (b) cited. Id. Cited Id., 624, 632, 633.
Subdiv. (3):
Cited. 198 C. 624, 632, 633.
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(2) Unless the filing provisions of article 9 have been complied with as set out in
subsection (3), a creditor of the seller may treat a sale or an identification of goods to
a contract for sale as void if as against him a retention of possession by the seller is
fraudulent under any rule of law of the state where the goods are situated, except that
retention of possession in good faith and current course of trade by a merchant-seller
for a commercially reasonable time after a sale or identification is not fraudulent.
(3) When a seller remains in possession of goods which have been sold or identified
to a contract for sale or of goods which, after sale, have been leased back to him, the
buyer or lessor of such goods may protect his interest by complying with the filing
provisions of article 9. On compliance the buyer or lessor has, against creditors of and
purchasers from the seller, the rights of a secured party with a perfected security interest.
Such filing does not, of itself, make the interest of the buyer or lessor a security interest,
as defined by subsection (37) of section 42a-1-201.
(4) Nothing in this article shall be deemed to impair the rights of creditors of the
seller (a) under the provisions of article 9; or (b) where identification to the contract or
delivery is made not in current course of trade but in satisfaction of or as security for a
preexisting claim for money, security or the like and is made under circumstances which
under any rule of law of the state where the goods are situated would apart from this
article constitute the transaction a fraudulent transfer or voidable preference.
(1959, P.A. 133, S. 2-402; 1961, P.A. 116, S. 1.)
History: 1961 act amended section to specify rights of buyers and lessors to file under Art. 9, adding opening clause
in Subsec. (2) and inserting new Subsec. (3), renumbering former Subsec. (3) accordingly.
Cited. 198 C. 624, 632.
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(2) Any entrusting of possession of goods to a merchant who deals in goods of that
kind gives him power to transfer all rights of the entruster to a buyer in ordinary course
of business.
(3) "Entrusting" includes any delivery and any acquiescence in retention of possession regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor's
disposition of the goods have been such as to be larcenous under the criminal law.
(4) The rights of other purchasers of goods and of lien creditors are governed by
articles 7 and 9.
(1959, P.A. 133, S. 2-403; P.A. 93-107, S. 2.)
History: P.A. 93-107 amended Subsec. (4) to delete reference to article 6.
Annotation to former statute (1958 Rev., S. 42-23):
Plaintiff's conduct estopped him from asserting ownership and defendant, an innocent purchaser for value, acquired a
good title. 137 C. 377.
Annotations to present section:
Cited. 198 C. 624, 632.
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PERFORMANCE
(2) The seller retains an insurable interest in goods so long as title to or any security
interest in the goods remains in him and where the identification is by the seller alone
he may until default or insolvency or notification to the buyer that the identification is
final substitute other goods for those identified.
(3) Nothing in this section impairs any insurable interest recognized under any other
statute or rule of law.
(1959, P.A. 133, S. 2-501.)
Cited. 198 C. 624, 635.
Subsec. (1):
(a) cited. 198 C. 624, 632.
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(2) If the identification creating his special property has been made by the buyer
he acquires the right to recover the goods only if they conform to the contract for sale.
(1959, P.A. 133, S. 2-502.)
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(2) Where the case is within the next section 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) of this section.
(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 acknowledgment 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 written direction to the bailee to deliver is sufficient tender unless the buyer
seasonably objects, and 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 subsection (2) of section 42a-
2-323 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.
(1959, P.A. 133, S. 2-503.)
Annotation to former statute (1958 Rev., S. 42-43): When delivery is to be made in instalments as buyer directs, seller
must use reasonable diligence to be ready to meet buyer's orders. 97 C. 292.
Annotations to present section:
Cited. 189 C. 433, 440.
Law creates presumption in favor of construing agreement as "shipment" contract as opposed to "destination" contract.
5 Conn. Cir. Ct. 597.
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(1959, P.A. 133, S. 2-504.)
Annotations to former statutes:
1958 Rev., S. 42-43: Delays of railroad transporting goods. 81 C. 573.
1958 Rev., S. 42-46: Delivery to carrier is delivery to buyer although jus disponendi is reserved under Sec. 42-22 to
secure price. 92 C. 425. Applied. 94 C. 87. Delivery to carrier held all that was required. 137 C. 111.
Where notice of shipment was given to buyer defendant and seller plaintiff mailed invoices to defendant, refusal of goods
by defendant's wife because of truck carrier's refusal to deliver within store, did not relieve defendant from responsibility to
pay price of goods. 5 Conn. Cir. Ct. 97.
Annotations to present section:
Cited. 207 C. 599, 605.
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(2) When shipment by the seller with reservation of a security interest is in violation
of the contract for sale it constitutes an improper contract for transportation within the
preceding section but impairs neither the rights given to the buyer by shipment and
identification of the goods to the contract nor the seller's powers as a holder of a negotiable document.
(1959, P.A. 133, S. 2-505.)
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(2) The right to reimbursement of a financing agency which has in good faith honored or purchased the draft under commitment to or authority from the buyer is not
impaired by subsequent discovery of defects with reference to any relevant document
which was apparently regular on its face.
(1959, P.A. 133, S. 2-506.)
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(2) Where payment is due and demanded on the delivery to the buyer of goods or
documents of title, his right as against the seller to retain or dispose of them is conditional
upon his making the payment due.
(1959, P.A. 133, S. 2-507.)
Annotations to former statutes (1958 Rev., S. 42-42, 42-46):
Buyer's notification of refusal to accept does not destroy seller's right to ship, nor revest title in seller. 94 C. 90. Buyer's
wrongful refusal to accept and reshipment to seller inoperative to divest buyer's title and extinguish seller's right to purchase
price. 97 C. 671. Notification to seller of refusal to accept delivery made by buyer before shipment is inoperative without
seller's acquiescence; there can be no anticipatory breach without acquiescence therein on part of injured party. Id., 89.
Annotation to present section:
Since seller made a proper tender of delivery, it was entitled to acceptance of the goods and to payment according to
the contract. 166 C. 280. Cited. 189 C. 433, 440.