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Tex. Bus. & Com. Code § 2.501

INSURABLE INTEREST IN GOODS; MANNER OF IDENTIFICATION OF GOODS

Known as the Uniform Commercial Code

The act spans §§ 1–12 (616 sections).

Applied in 3 court decisions — leading case Superior Derrick Services v. Anderson (1992)

Most recently applied in 824 F. Supp. 103 - Global Petrotech, Inc. v. Engelhard Corp. (June 1993)

Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff

How often courts cite this section

197919801990199310
citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(a) 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

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

(2) if the contract is for the sale of future goods other than those described in Subdivision (3), when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers;

(3) when the crops are planted or otherwise become growing crops or the young are conceived if the contract is for the sale of unborn young to be born within twelve months after contracting or for the sale of crops to be harvested within twelve months or the next normal harvest season after contracting whichever is longer.

(b) 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.

(c) Nothing in this section impairs any insurable interest recognized under any other statute or rule of law.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.