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2018 Georgia Code 11-2-722 | Car Wreck Lawyer

Link to State of Georgia Official Statute 2018 Georgia Code Annotated (sourced from legal.resource.org)
O.C.G.A. 11-2-722 Case Law from Google Scholar Amendments to OCGA 11-2-722

TITLE 11 COMMERCIAL CODE

Section 2. Sales, 11-2-101 through 11-2-725.

ARTICLE 2 SALES

11-2-722. Who can sue third parties for injury to goods.

Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract:

  1. A right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods; and if the goods have been destroyed or converted a right of action is also in the party who either bore the risk of loss under the contract for sale or has since the injury assumed that risk as against the other;
  2. If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the contract for sale and there is no arrangement between them for disposition of the recovery, his suit or settlement is, subject to his own interest, as a fiduciary for the other party to the contract;
  3. Either party may with the consent of the other sue for the benefit of whom it may concern.

(Code 1933, § 109A-2 - 722, enacted by Ga. L. 1962, p. 156, § 1.)

JUDICIAL DECISIONS

Applicability.

- O.C.G.A. § 11-2-722 merely determines which party to a contract may bring an action against a third party who has otherwise committed an actionable injury against identifiable property that is the subject of the contract; it did not apply in an action for damages, arising from delay in delivery of a machine, against a defendant which had agreed to sell the machine to a third company which would sell it to the plaintiff. Philips Medical Sys. N. Am. Co. v. Diagnostic Equip. Servs., Inc., 213 Ga. App. 236, 444 S.E.2d 345 (1994).

Cited in Holiday Homes, Inc. v. Bragg, 132 Ga. App. 594, 208 S.E.2d 608 (1974).

RESEARCH REFERENCES

Am. Jur. 2d.

- 67 Am. Jur. 2d, Sales, § 409.

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:808.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-722.

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