Tennessee Code Annotated
Tenn. Code Ann. § 47-2-501 (2026)
Insurable interest in goods - Manner of identification of goods
✓ current as of May 2026
- (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 (12) months after contracting or for the sale of crops to be harvested within twelve (12) months or the next normal harvest season after contracting whichever is longer.
- (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.
Acts 1963, ch. 81, § 1 (2-501).
Notes of Decisions
Cited in 8
cases, 1984–2013 · leading case: Prod. Steel, Inc. v. Sumitomo Corp. of Am. (In Re Prod. Steel, Inc.), 54 B.R. 417 (Bankr. M.D. Tenn. 1985).
Prod. Steel, Inc. v. Sumitomo Corp. of Am. (In Re Prod. Steel, Inc.), 54 B.R. 417 (Bankr. M.D. Tenn. 1985). “§ 47-2-401(2)(b) (1979) (“[I]f the contract requires delivery at destination title passes on tender there”). This “insurable interest” is separate and distinct from the duty to pay which arises upon delivery and acceptance (unless the contract provides otherwise).”
In Re Jeans, 326 B.R. 722 (Bankr. W.D. Tenn. 2005). “The Tennessee Code makes this clear: Title of goods cannot pass under a contract for sale prior to their identification to the contract (§ 47-2-501), and unless otherwise explicitly agreed the buyer acquires by this identification a special property as limited by Chapters 1-9 of…”
Weaver v. Ford Motor Credit Co. (In re McFarland), 112 B.R. 906 (Bankr. E.D. Tenn. 1990). “The particular Code section of chapter 2 applicable here is found at Tennessee Code Annotated § 47-2-501 (1979). It reads as follows: (1) The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract…”
Marlow v. Oakland Gin Co. (In Re Julien Co.), 128 B.R. 987 (Bankr. W.D. Tenn. 1991). “Insofar as situations are not covered by the other provisions of this chapter and matters concerning title become material the following rules apply: (1) Title to goods cannot pass under a contract for sale prior to their identification to the contract (§ 47-2-501) and unless…”
Pro Page Partners, LLC v. Message Express Paging Co. (In Re Pro Page Partners, LLC), 270 B.R. 221 (Bankr. E.D. Tenn. 2013). “3 With respect to when title to the sale of goods passes, the Uniform Commercial Code, as adopted in Tennessee, provides in part the following rules: (1) Title to goods cannot pass under a contract, for sale prior to their identification to the contract (§ 47-2-501), and unless…”
Skinner v. Cumberland Auto Ctr. (In Re Skinner), 238 B.R. 120 (Bankr. M.D. Tenn. 1999). “§ 47-2-501(1). Judge Cook reasoned that the purchase order was a sale contract despite the condition precedent that financing be obtained.”
Amex Trading Co. v. Brown Feed & Chem. Co. (In Re Amex Trading Co.), 37 B.R. 793 (Bankr. W.D. Tenn. 1984). “§ 47-2-501 offers the following guidance to the Court: “(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…”
Conister Trust v. Boating Corp. of Am. & Villas-Afloat (Tenn. Ct. App. 1999). “-12- Under Tenn. Code Ann. § 47-2-501 a buyer obtains “a special property” and an insurable interest in goods by identification of the goods to the contract.”
Tenn. Code Ann. § 47-2-501(1): 2 cases
In Re Jeans, 326 B.R. 722 (Bankr. W.D. Tenn. 2005). “The Tennessee Code makes this clear: Title of goods cannot pass under a contract for sale prior to their identification to the contract (§ 47-2-501), and unless otherwise explicitly agreed the buyer acquires by this identification a special property as limited by Chapters 1-9 of…”
Skinner v. Cumberland Auto Ctr. (In Re Skinner), 238 B.R. 120 (Bankr. M.D. Tenn. 1999). “§ 47-2-501(1). Judge Cook reasoned that the purchase order was a sale contract despite the condition precedent that financing be obtained.”
Tenn. Code Ann. § 47-2-501(l)(a): 1 case
In Re Jeans, 326 B.R. 722 (Bankr. W.D. Tenn. 2005). “The Tennessee Code makes this clear: Title of goods cannot pass under a contract for sale prior to their identification to the contract (§ 47-2-501), and unless otherwise explicitly agreed the buyer acquires by this identification a special property as limited by Chapters 1-9 of…”
Tenn. Code Ann. § 47-2-501(l)(b): 1 case
Prod. Steel, Inc. v. Sumitomo Corp. of Am. (In Re Prod. Steel, Inc.), 54 B.R. 417 (Bankr. M.D. Tenn. 1985). “§ 47-2-401(2)(b) (1979) (“[I]f the contract requires delivery at destination title passes on tender there”). This “insurable interest” is separate and distinct from the duty to pay which arises upon delivery and acceptance (unless the contract provides otherwise).”
Annotations are extracted automatically from the opinions in the
Syfert caselaw corpus and ranked by authority, recency, and
treatment. Dots show Syfertize treatment of the citing case itself.