Tennessee Code Annotated

Tenn. Code Ann. § 47-2-310 (2026)

Open time for payment or running of credit - Authority to ship under reservation

✓ current as of May 2026

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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 (§ 47-2-513); and

(c) If delivery is authorized and made by way of documents of title otherwise than by subsection (b) then payment is due regardless of where the goods are to be received (i) at the time and place at which the buyer is to receive delivery of the tangible documents or (ii) at the time the buyer is to receive delivery of the electronic documents and at the seller's place of business or, if none, the seller's residence; 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 post-dating the invoice or delaying its dispatch will correspondingly delay the starting of the credit period.

Acts 1963, ch. 81, § 1 (2-310); Acts 2008, ch. 814, § 5.

Notes of Decisions

Cited in 2 cases, 1999–2004 · leading case: Ruffin Buildling Sys., Inc. v. Larry Gene Varner, an individual (Tenn. Ct. App. 2004).

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Ruffin Buildling Sys., Inc. v. Larry Gene Varner, an individual (Tenn. Ct. App. 2004). · cites it 4× “” Tenn. Code Ann. § 47-2-301 (2003). Plaintiff admits that under Tenn.”

Conister Trust v. Boating Corp. of Am. & Villas-Afloat (Tenn. Ct. App. 1999). · cites it 2× “Tenn. Code Ann. § 47-2-310 , cmt. 2. The fact that BCA retained possession strengthens its position and broadens its range of remedies under Article 2.”

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