Tennessee Code Annotated
Tenn. Code Ann. § 47-2-509 (2026)
Risk of loss in the absence of breach
✓ current as of May 2026
- (1) Where the contract requires or authorizes the seller to ship the goods by carrier:
- (A) If it does not require him to deliver them at a particular destination, the risk of loss passes to the buyer when the goods are duly delivered to the carrier even though the shipment is under reservation (§ 47-2-505); but
- (B) If it does require him to deliver them 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 buyer when the goods are there duly so tendered as to enable the buyer to take delivery.
- (2) Where the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the buyer:
- (A) On his receipt of possession or control of a negotiable document of title covering the goods; or
- (B) On acknowledgment by the bailee of the buyer's right to possession of the goods; or
- (C) After his receipt of possession or control of a non-negotiable document of title or other direction to deliver in a record, as provided in § 47-2-503(4)(B).
- (3) In any case not within subsection (1) or (2), the risk of loss passes to the buyer on his receipt of the goods if the seller is a merchant; otherwise the risk passes to the buyer on tender of delivery.
- (4) The provisions of this section are subject to contrary agreement of the parties and to the provisions of this chapter on sale on approval (§ 47-2-327) and on effect of breach on risk of loss (§ 47-2-510).
Acts 1963, ch. 81, § 1 (2-509); Acts 2008, ch. 814, § 12.
Notes of Decisions
Cited in 4
cases, 1983–2013 · leading case: Moses v. Newman, 658 S.W.2d 119 (Tenn. Ct. App. 1983).
Moses v. Newman, 658 S.W.2d 119 (Tenn. Ct. App. 1983). “, § 47-2-510(1) applies, which provides: “Where a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk of their loss remains on the seller until cure or acceptance.”
3L Commc'ns L.L.C. v. Jodi Merola, Individually, & d/b/a NY Telecom Supply (Tenn. Ct. App. 2013). “Tennessee Code Annotated Section 47-2-509 provides, in relevant part: (1) Where the contract requires or authorizes the seller to ship the goods by carrier: (A) If it does not require him to deliver them at a particular destination, the risk of loss passes to the buyer when the…”
Skripak v. Comm'r, 84 T.C. 285 (1985). “47-2-509(2)(a) ↩ (1979). 24. Petitioners' risk was subject, of course, to Embassy's liability for its negligent acts or omissions.”
Harmon v. Dunn (Tenn. Ct. App. 1997). “The passing of the risk of loss in the absence of breach is covered under § 47-2-509. It states, in part pertinent: Risk of loss in the absence of breach.”
Tenn. Code Ann. § 47-2-509(2): 1 case
Harmon v. Dunn (Tenn. Ct. App. 1997). “The passing of the risk of loss in the absence of breach is covered under § 47-2-509. It states, in part pertinent: Risk of loss in the absence of breach.”
Tenn. Code Ann. § 47-2-509(3): 1 case
Moses v. Newman, 658 S.W.2d 119 (Tenn. Ct. App. 1983). “, § 47-2-510(1) applies, which provides: “Where a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk of their loss remains on the seller until cure or acceptance.”
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