Tennessee Code Annotated
Tenn. Code Ann. § 47-2-510 (2026)
Effect of breach on risk of loss
✓ current as of May 2026
- (1) 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.
- (2) Where the buyer rightfully revokes acceptance he may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as having rested on the seller from the beginning.
- (3) Where the buyer as to conforming goods already identified to the contract for sale repudiates or is otherwise in breach before risk of their loss has passed to him, the seller may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as resting on the buyer for a commercially reasonable time.
Acts 1963, ch. 81, § 1 (2-510).
Notes of Decisions
Cited in 2
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). “For the risk to shift to the purchaser, the purchaser must receive the goods and the seller must fulfill his contractual obligations.”
3L Commc'ns L.L.C. v. Jodi Merola, Individually, & d/b/a NY Telecom Supply (Tenn. Ct. App. 2013). “”), we concluded that the risk of loss had not shifted to the buyer: For the risk to shift to the purchaser, the purchaser must receive the goods and the seller must fulfill his contractual obligations. “Under subsection (1) the seller by his individual action cannot -8- shift…”
Tenn. Code Ann. § 47-2-510(1): 2 cases
Moses v. Newman, 658 S.W.2d 119 (Tenn. Ct. App. 1983). “For the risk to shift to the purchaser, the purchaser must receive the goods and the seller must fulfill his contractual obligations.”
3L Commc'ns L.L.C. v. Jodi Merola, Individually, & d/b/a NY Telecom Supply (Tenn. Ct. App. 2013). “”), we concluded that the risk of loss had not shifted to the buyer: For the risk to shift to the purchaser, the purchaser must receive the goods and the seller must fulfill his contractual obligations. “Under subsection (1) the seller by his individual action cannot -8- shift…”
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