California Commercial Code

§ 2501

COM § 2501Div. 2 · Ch. 5

Statute text

(1)The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers even though the goods so identified are nonconforming and he has an option to return or reject them. Such identification can be made at any time and in any manner explicitly agreed to by the parties. In the absence of explicit agreement identification occurs

(a)When the contract is made if it is for the sale of goods already existing and identified;

(b)If the contract is for the sale of future goods other than those described in paragraph (c), when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers;

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Legislative history

Enacted by Stats. 1963, Ch. 819.