(2-509) Risk of loss in the absence of breach
N.D. Cent. Code § 41-02-57
in effect41-02-57. (2-509) Risk of loss in the absence of breach
1. If the contract requires or authorizes the seller to ship the goods by carrier:
a. If it does not require the seller to deliver them at a particular destination, the risk
of loss passes to the buyer when the goods are duly delivered to the carrier even
though the shipment is under reservation (section 41-02-53).
b. If it does require the seller to deliver them at a particular destination and the
goods are there duly tendered while in the possession of the carrier, the risk of
loss passes to the buyer when the goods are there duly so tendered as to enable
the buyer to take delivery.
2. If the goods are held by a bailee to be delivered without being moved, the risk of loss
passes to the buyer:
a. On the buyer's receipt of possession or control of a negotiable document of title
covering the goods;
b. On acknowledgment by the bailee of the buyer's right to possession of the goods;
or
c. After the buyer's receipt of possession or control of a non-negotiable document of
title or other direction to deliver in a record, as provided in subdivision b of
subsection 4 of section 41-02-51.
3. In any case not within subsection 1 or 2, the risk of loss passes to the buyer on the
buyer's 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 chapter on sale on approval (section 41-02-44) and on effect of
breach on risk of loss (section 41-02-58).
Source: Open US Law by Vaquill AI (CC BY 4.0)URL: https://ndlegis.gov/cencode/t41c02.pdf#nameddest=41-02-57Fetched: 10/16/2026