12.03.050 Risk of Loss in the Absence of Breach

(a) Where the contract requires or authorizes the seller to ship the goods to the buyer:

(1) 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 properly delivered to the shipper; but

(2) If the contract requires the seller to deliver the goods at a particular destination, the risk of loss passes to the buyer only when the goods are properly tendered at the destination.

(b) Where the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the buyer on:

(1) Acknowledgment by the bailee of the buyer's right to possession of the goods; or

(2) Upon the buyer's receipt of a document of title covering the goods; or

(3) Upon the receipt by the bailee of a written direction by the seller to deliver the goods to the buyer.

(c) In any case not within Subsections(a) and (b), the risk of loss passes to the buyer upon his receipt of the goods if the seller is a merchant, otherwise the risk passes to the buyer on tender of delivery.