Tex. Bus. & Com. Code § 2.509 · Subchapter E. PERFORMANCE
RISK OF LOSS IN THE ABSENCE OF BREACH.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(a) Where the contract requires or authorizes the seller to ship the goods by carrier
(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 duly delivered to the carrier even though the shipment is under reservation (Section 2.505); but
(2) 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.
(b) Where the goods are held by a bailee to be delivered without being moved, the risk of loss passes to the buyer
(1) on the buyer's receipt of possession or control of a negotiable document of title covering the goods; or
(2) on acknowledgment by the bailee of the buyer's right to possession of the goods; or
(3) after the buyer's receipt of possession or control of a non-negotiable document of title or other written direction to deliver, as provided in Subsection (d)(2) of Section 2.503.
(c) In any case not within Subsection (a) or (b), 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.
(d) The provisions of this section are subject to contrary agreement of the parties and to the provisions of this chapter on sale on approval (Section 2.327) and on effect of breach on risk of loss (Section 2.510).
Notes and commentary — not statutory text
History
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967. Amended by Acts 1983, 68th Leg., p. 1531, ch. 290, Sec. 2, eff. Aug. 29, 1983.
Amended by:
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 10, eff. September 1, 2005.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.2.htm
- Text hash
- sha256 d21c2d8b46deaeb8ebd299bc03440359136b47a193070e182085261c6b2f56ab
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Business & Commerce Code
- Tex. Bus. & Com. Code § 2.327SPECIAL INCIDENTS OF SALE ON APPROVAL AND SALE OR RETURN.Printed as Section 2.327
- Tex. Bus. & Com. Code § 2.503MANNER OF SELLER'S TENDER OF DELIVERY.Printed as Section 2.503
- Tex. Bus. & Com. Code § 2.505SELLER'S SHIPMENT UNDER RESERVATION.Printed as Section 2.505
- Tex. Bus. & Com. Code § 2.510EFFECT OF BREACH ON RISK OF LOSS.Printed as Section 2.510
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.