There is a newer version
of
this Section
2020 Tennessee Code
Title 47 - Commercial Instruments and Transactions
Chapter 2A - Leases
Part 2 - Formation and Construction of Lease Contract
§ 47-2A-219. Risk of Loss
Universal Citation: TN Code § 47-2A-219 (2020)
- Except in the case of a finance lease, risk of loss is retained by the lessor and does not pass to the lessee. In the case of a finance lease, risk of loss passes to the lessee.
- Subject to the provisions of this chapter on the effect of default on risk of loss (§ 47-2A-220), if risk of loss is to pass to the lessee and the time of passage is not stated, the following rules apply:
- If the lease contract requires or authorizes the goods to be shipped by carrier
- If the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the lessee on acknowledgment by the bailee of the lessee's right to possession of the goods.
- In any case not within subsection (a) or (b), the risk of loss passes to the lessee on the lessee's receipt of the goods if the lessor, or, in the case of a finance lease, the supplier, is a merchant; otherwise the risk passes to the lessee on tender of delivery.
and it does not require delivery at a particular destination, the risk of loss passes to the lessee when the goods are duly delivered to the carrier; but
if it does require delivery at a particular destination and the goods are there duly tendered while in the possession of the carrier, the risk of loss passes to the lessee when the goods are there duly so tendered as to enable the lessee to take delivery.
Disclaimer: These codes may not be the most recent version. Tennessee may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
This site is protected by reCAPTCHA and the Google
Privacy Policy and
Terms of Service apply.
