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N.D. Cent. Code § 41-02-60

(2-512) Payment by buyer before inspection

Redline — December 1, 2021 → current.View current text →
Current — January 1, 2022
As of December 1, 2021
(1) If the contract requires payment before inspection, nonconformity of the goods does not excuse the buyer from so making payment unless: The nonconformity appears without inspection; or
(1) If the contract requires payment before inspection, nonconformity of the goods does not excuse the buyer from so making payment unless: The nonconformity appears without inspection; or
(2) Despite tender of the required documents the circumstances would justify injunction against honor under this title (section 41-05-09).
(2) Despite tender of the required documents the circumstances would justify injunction against honor under this title (section 41-05-09).
(3) Payment pursuant to subsection 1 does not constitute an acceptance of goods or impair the buyer’s right to inspect or any of the buyer’s remedies.
(3) Payment pursuant to subsection 1 does not constitute an acceptance of goods or impair the buyer’s right to inspect or any of the buyer’s remedies.
(4) Clause (a) of this subsection states an exception to the general rule based on common sense and normal commercial practice. The apparent non-conformity referred to is one which is evident in the mere process of taking delivery.
(5) Clause (b) is concerned with contracts for payment against documents and incorporates the general clarification and modification of the case law contained in the section on excuse of a financing agency. Section 5-114.
(6) Subsection (2) makes explicit the general policy of the Uniform Sales Act that the payment required before inspection in no way impairs the buyer’s remedies or rights in the event of a default by the seller. The remedies preserved to the buyer are all of his remedies, which include as a matter of reason the remedy for total non-delivery after payment in advance.
(7) This section applies to cases in which the contract requires payment before inspection either by the express agreement of the parties or by reason of the effect in law of that contract. The present section must therefore be considered in conjunction with the provision on right to inspection of goods which sets forth the instances in which the buyer is not entitled to inspection before payment.

Official source: North Dakota Legislative Branch. Reproduced from public-domain North Dakota statutes; confirm against the official source for the current text. Not legal advice.