(810 ILCS 5/Art. 2 Pt. 5 heading) PART 5.
PERFORMANCE
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(810 ILCS 5/2-501) (from Ch. 26, par. 2-501)
Sec. 2-501.
Insurable interest in goods; manner of identification of goods.
(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 non-conforming 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 | ||
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(b) if the contract is for the sale of future goods | ||
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(c) when the crops are planted or otherwise become | ||
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(2) The seller retains an insurable interest in goods so long as title
to or any security interest in the goods remains in him and where the
identification is by the seller alone he may until default or insolvency or
notification to the buyer that the identification is final substitute other
goods for those identified.
(3) Nothing in this Section impairs any insurable interest recognized
under any other statute or rule of law.
(Source: Laws 1961, 1st SS., p. 7 .)
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(810 ILCS 5/2-502) (from Ch. 26, par. 2-502)
Sec. 2-502.
Buyer's right to goods on seller's insolvency.
(1) Subject to subsections (2) and (3) and even
though the goods have not
been
shipped a buyer who has paid a part or all of the price of goods in which
he has a special property under the provisions of the immediately preceding
section may on making and keeping good a tender of any unpaid portion of
their price recover them from the seller if:
(a) in the case of goods bought for personal, family, | ||
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(b) in all cases, the seller becomes insolvent within | ||
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(2) The buyer's right to recover the goods under subsection (1)(a) vests
upon acquisition of a special property, even if the seller had not then
repudiated or failed to deliver.
(3) If the identification creating his special property has been made by
the buyer he acquires the right to recover the goods only if they conform
to the contract for sale.
(Source: P.A. 91-893, eff. 7-1-01.)
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(810 ILCS 5/2-503) (from Ch. 26, par. 2-503)
Sec. 2-503. Manner of seller's tender of delivery.
(1) Tender of delivery requires that the seller put and hold conforming
goods at the buyer's disposition and give the buyer any notification
reasonably necessary to enable him to take delivery. The manner, time and
place for tender are determined by the agreement and this Article, and in
particular
(a) tender must be at a reasonable hour, and if it is | ||
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(b) unless otherwise agreed the buyer must furnish | ||
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(2) Where the case is within the next section respecting shipment tender
requires that the seller comply with its provisions.
(3) Where the seller is required to deliver at a particular destination
tender requires that he comply with subsection (1) and also in any
appropriate case tender documents as described in subsections (4) and (5)
of this Section.
(4) Where goods are in the possession of a bailee and are to be
delivered without being moved
(a) tender requires that the seller either tender a | ||
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(b) tender to the buyer of a non-negotiable document | ||
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(5) Where the contract requires the seller to deliver documents
(a) he must tender all such documents in correct | ||
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(b) tender through customary banking channels is | ||
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(Source: P.A. 95-895, eff. 1-1-09 .)
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(810 ILCS 5/2-504) (from Ch. 26, par. 2-504)
Sec. 2-504.
Shipment by seller.
Where the seller is required or authorized to send the goods to the
buyer and the contract does not require him to deliver them at a particular
destination, then unless otherwise agreed he must
(a) put the goods in the possession of such a carrier | ||
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(b) obtain and promptly deliver or tender in due form | ||
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(c) promptly notify the buyer of the shipment.
Failure to notify the buyer under paragraph (c) or to make a proper
contract under paragraph (a) is a ground for rejection only if material
delay or loss ensues.
(Source: Laws 1961, p. 2101 .)
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(810 ILCS 5/2-505) (from Ch. 26, par. 2-505)
Sec. 2-505. Seller's shipment under reservation.
(1) Where the seller has identified goods to the contract by or before
shipment:
(a) his procurement of a negotiable bill of lading to | ||
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(b) a non-negotiable bill of lading to himself or his | ||
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(2) When shipment by the seller with reservation of a security interest
is in violation of the contract for sale it constitutes an improper
contract for transportation within the preceding section but impairs
neither the rights given to the buyer by shipment and identification of the
goods to the contract nor the seller's powers as a holder of a negotiable
document of title.
(Source: P.A. 95-895, eff. 1-1-09 .)
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(810 ILCS 5/2-506) (from Ch. 26, par. 2-506)
Sec. 2-506. Rights of financing agency.
(1) A financing agency by paying or purchasing for value a draft which
relates to a shipment of goods acquires to the extent of the payment or
purchase and in addition to its own rights under the draft and any document
of title securing it any rights of the shipper in the goods including the
right to stop delivery and the shipper's right to have the draft honored by
the buyer.
(2) The right to reimbursement of a financing agency which has in good
faith honored or purchased the draft under commitment to or authority from
the buyer is not impaired by subsequent discovery of defects with reference
to any relevant document which was apparently regular.
(Source: P.A. 95-895, eff. 1-1-09.)
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(810 ILCS 5/2-507) (from Ch. 26, par. 2-507)
Sec. 2-507.
Effect of seller's tender; delivery on condition.
(1) Tender of delivery is a condition to the buyer's duty to accept the
goods and, unless otherwise agreed, to his duty to pay for them. Tender
entitles the seller to acceptance of the goods and to payment according to
the contract.
(2) Where payment is due and demanded on the delivery to the buyer of
goods or documents of title, his right as against the seller to retain or
dispose of them is conditional upon his making the payment due.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-508) (from Ch. 26, par. 2-508)
Sec. 2-508.
Cure
by seller of improper tender or delivery; replacement.
(1) Where any tender or delivery by the seller is rejected because
non-conforming and the time for performance has not yet expired, the seller
may seasonably notify the buyer of his intention to cure and may then
within the contract time make a conforming delivery.
(2) Where the buyer rejects a non-conforming tender which the seller had
reasonable grounds to believe would be acceptable with or without money
allowance the seller may if he seasonably notifies the buyer have a further
reasonable time to substitute a conforming tender.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-509) (from Ch. 26, par. 2-509)
Sec. 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 | ||
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(b) if it does require him to deliver them at a | ||
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(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 possession or control of a | ||
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(b) on acknowledgment by the bailee of the buyer's | ||
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(c) after his receipt of possession or control of a | ||
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(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 Article on sale on approval
(Section 2-327) and on effect of breach on risk of loss (Section 2-510).
(Source: P.A. 95-895, eff. 1-1-09 .)
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(810 ILCS 5/2-510) (from Ch. 26, par. 2-510)
Sec. 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 identified to the
contract for sale repudiates or is otherwise in breach before risk of their
loss has passed to him, the seller may to the extent of any deficiency in
his effective insurance coverage treat the risk of loss as resting on the
buyer for a commercially reasonable time.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-511) (from Ch. 26, par. 2-511)
Sec. 2-511.
Tender of payment by buyer; payment by check.
(1) Unless otherwise agreed tender of payment is a condition to the
seller's duty to tender and complete any delivery.
(2) Tender of payment is sufficient when made by any means or in any
manner current in the ordinary course of business unless the seller demands
payment in legal tender and gives any extension of time reasonably
necessary to procure it.
(3) Subject to the provisions of this Act on the effect of an instrument
on an obligation (Section 3-310), payment by check is conditional and is
defeated as between the parties by dishonor of the check on due
presentment.
(Source: P.A. 87-1135.)
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(810 ILCS 5/2-512) (from Ch. 26, par. 2-512)
Sec. 2-512.
Payment by buyer before inspection.
(1) Where the contract requires payment before inspection non-conformity
of the goods does not excuse the buyer from so making payment unless
(a) the non-conformity appears without inspection; or
(b) despite tender of the required documents the | ||
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(2) Payment pursuant to subsection (1) does not constitute an acceptance
of goods or impair the buyer's right to inspect or any of his remedies.
(Source: P.A. 89-534, eff. 1-1-97.)
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(810 ILCS 5/2-513) (from Ch. 26, par. 2-513)
Sec. 2-513.
Buyer's right to inspection of goods.
(1) Unless otherwise agreed and subject to subsection (3), where goods
are tendered or delivered or identified to the contract for sale, the buyer
has a right before payment or acceptance to inspect them at any reasonable
place and time and in any reasonable manner. When the seller is required or
authorized to send the goods to the buyer, the inspection may be after
their arrival.
(2) Expenses of inspection must be borne by the buyer but may be
recovered from the seller if the goods do not conform and are rejected.
(3) Unless otherwise agreed and subject to the provisions of this
Article on C.I.F. contracts (subsection (3) of Section 2-321, the buyer
is not entitled to inspect the goods before payment of the price when the
contract provides
(a) for delivery "C.O.D." or on other like terms; or
(b) for payment against documents of title, except | ||
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(4) A place or method of inspection fixed by the parties is presumed to
be exclusive but unless otherwise expressly agreed it does not postpone
identification or shift the place for delivery or for passing the risk of
loss. If compliance becomes impossible, inspection shall be as provided in
this Section unless the place or method fixed was clearly intended as an
indispensable condition failure of which avoids the contract.
(Source: Laws 1961, p. 2101 .)
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(810 ILCS 5/2-514) (from Ch. 26, par. 2-514)
Sec. 2-514.
When
documents deliverable on acceptance; when on payment.
Unless otherwise agreed documents against which a draft is drawn are to
be delivered to the drawee on acceptance of the draft if it is payable more
than 3 days after presentment; otherwise, only on payment.
(Source: Laws 1961, p. 2101.)
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(810 ILCS 5/2-515) (from Ch. 26, par. 2-515)
Sec. 2-515.
Preserving evidence of goods in dispute.
In furtherance of the adjustment of any claim or dispute
(a) either party on reasonable notification to the | ||
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(b) the parties may agree to a third party inspection | ||
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(Source: Laws 1961, p. 2101 .)
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