130

LAWS OF MARYLAND

[Ch. 49

2—509. Risk of loss in the absence of breach.

(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 (§
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 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 a non-negotiable
document of title or other written direction to deliver,
as provided in subsection (4) (b) of § 2—503.

(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 [subtitle] TITLE on sale on approval (§ 2—327)
and on effect of breach on risk of loss (§ 2—510).

2—510. Effect of breach on risk of loss.

(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