California Commercial Code

§ 10220

COM § 10220 Effective Jul 15, 1991Div. 10 · Ch. 2

Statute text

(a)Where risk of loss is to pass to the lessee and the time of passage is not stated:

(1)If a tender or delivery of goods so fails to conform to the lease contract as to give a right of rejection, the risk of their loss remains with the lessor, or, in the case of a finance lease, the supplier, until cure or acceptance.

(2)If the lessee rightfully revokes acceptance, he or she, to the extent of any deficiency in his or her effective insurance coverage, may treat the risk of loss as having remained with the lessor from the beginning.

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Legislative history

Amended by Stats. 1991, Ch. 111, Sec. 22. Effective July 15, 1991.