Sec. 401. Each provision of IC 26-1-2 with regard to the rights, obligations, and remedies of the seller, the buyer, purchasers, or other third parties applies irrespective of title to the goods, except where the provision refers to such title. Insofar as situations are not covered by the other provisions of IC 26-1-2 and matters concerning title become material, the following rules apply:
(1) Title to goods cannot pass under a contract for sale prior to their identification to the contract (IC 26-1-2-501), and unless otherwise explicitly agreed, the buyer acquires by their identification a special property as limited by IC 26-1. Any retention or reservation by the seller of the title (property) in goods shipped or delivered to the buyer is limited in effect to a reservation of a security interest. Subject to these provisions and to the provisions of IC 26-1-9.1 on secured transactions, title to goods passes from the seller to the buyer in any manner and on any conditions explicitly agreed on by the parties.
(2) Unless otherwise explicitly agreed, title passes to the buyer at the time and place at which the seller completes his performance with reference to the physical delivery of the goods, despite any reservation of a security interest and even though a document of title is to be delivered at a different time or place, and in particular despite any reservation of a security interest by the bill of lading:
(a) if the contract requires or authorizes the seller to send the goods to the buyer but does not require him to deliver them at destination, title passes to the buyer at the time and place of shipment; but
(b) if the contract requires delivery at destination, title passes on tender there.
(3) Unless otherwise explicitly agreed, where delivery is to be made without moving the goods:
(a) if the seller is to deliver a tangible document of title, title passes at the time when and the place where he delivers such documents and if the seller is to deliver an electronic document of title, title passes when the seller delivers the document; or
(b) if the goods are at the time of contracting already identified and no documents of title are to be delivered, title passes at the time and place of contracting.
(4) A rejection or other refusal by the buyer to receive or retain the goods, whether or not justified, or a justified revocation of acceptance revests title to the goods in the seller. Such revesting occurs by operation of law and is not a "sale".
Formerly: Acts 1963, c.317, s.2-401. As amended by P.L.152-1986, SEC.141; P.L.57-2000, SEC.18; P.L.143-2007, SEC.12.
Structure Indiana Code
Article 1. Uniform Commercial Code
26-1-2-102. Scope; Certain Security and Other Transactions Excluded From This Chapter
26-1-2-103. Definitions and Index of Definitions
26-1-2-104. "Merchant"; "Between Merchants"; "Financing Agency"
26-1-2-105. Transferability; "Goods"; "Future" Goods; "Lot"; "Commercial Unit"
26-1-2-107. Goods to Be Severed From Realty; Recording
26-1-2-201. Formal Requirements; Statute of Frauds
26-1-2-202. Final Written Expression; Parol or Extrinsic Evidence
26-1-2-204. Formation in General
26-1-2-206. Offer and Acceptance in Formation of Contract
26-1-2-207. Additional Terms in Acceptance or Confirmation
26-1-2-209. Modification, Rescission, and Waiver
26-1-2-210. Delegation of Performance; Assignment of Rights
26-1-2-301. General Obligations of Parties
26-1-2-302. Unconscionable Contract or Clause
26-1-2-303. Allocation or Division of Risks
26-1-2-304. Price Payable in Money, Goods, Realty, or Otherwise
26-1-2-306. Output, Requirements, and Exclusive Dealings
26-1-2-307. Delivery in Single Lot or Several Lots
26-1-2-308. Absence of Specified Place for Delivery
26-1-2-309. Absence of Specific Time Provisions; Notice of Termination
26-1-2-310. Open Time for Payment or Running of Credit; Authority to Ship Under Reservation
26-1-2-311. Options and Cooperation Respecting Performance
26-1-2-312. Warranty of Title and Against Infringement; Buyer's Obligation Against Infringement
26-1-2-313. Express Warranties by Affirmation, Promise, Description, and Sample
26-1-2-314. Implied Warranty; Merchantability; Usage of Trade
26-1-2-315. Implied Warranty; Fitness for Particular Purpose
26-1-2-316. Exclusion or Modification of Warranties
26-1-2-317. Cumulation and Conflict of Warranties Express or Implied
26-1-2-318. Third Party Beneficiaries of Warranties Express or Implied
26-1-2-319. f.o.b. and f.a.s. Terms
26-1-2-320. c.i.f. and c.&f. Terms
26-1-2-322. Delivery "Ex-Ship"
26-1-2-323. Form of Bill of Lading Required in Overseas Shipment; "Overseas"
26-1-2-324. "No Arrival, No Sale"
26-1-2-325. "Letter of Credit"; "Confirmed Credit"
26-1-2-326. Sale on Approval and Sale or Return
26-1-2-327. Special Incidents of Sale on Approval and Sale or Return
26-1-2-401. Passing of Title; Reservation of Security; Limited Application of This Section
26-1-2-402. Rights of Seller's Creditors Against Sold Goods
26-1-2-403. Power to Transfer; Good Faith Purchase of Goods; "Entrusting"
26-1-2-501. Insurable Interest in Goods; Manner of Identification of Goods
26-1-2-502. Buyer's Right to Goods on Seller's Repudiation, Failure to Deliver, or Insolvency
26-1-2-503. Manner of Seller's Tender of Delivery
26-1-2-504. Shipment by Seller
26-1-2-505. Seller's Shipment Under Reservation
26-1-2-506. Rights of Financing Agency
26-1-2-507. Effect of Seller's Tender; Delivery on Condition
26-1-2-508. Cure by Seller of Improper Tender or Delivery; Replacement
26-1-2-509. Risk of Loss in the Absence of Breach
26-1-2-510. Effect of Breach on Risk of Loss
26-1-2-511. Tender of Payment by Buyer; Payment by Check
26-1-2-512. Payment by Buyer Before Inspection
26-1-2-513. Buyer's Right of Inspection of Goods
26-1-2-514. When Documents Deliverable on Acceptance; When on Payment
26-1-2-515. Preserving Evidence of Goods in Dispute
26-1-2-601. Buyer's Rights on Improper Delivery
26-1-2-602. Manner and Effect of Rightful Rejection
26-1-2-603. Merchant Buyer's Duties as to Rightfully Rejected Goods
26-1-2-604. Buyer's Options as to Salvage of Rightfully Rejected Goods
26-1-2-605. Waiver of Buyer's Objections by Failure to Particularize
26-1-2-606. What Constitutes Acceptance of Goods
26-1-2-608. Revocation of Acceptance in Whole or in Part
26-1-2-609. Right to Adequate Assurance of Performance
26-1-2-610. Anticipatory Repudiation
26-1-2-611. Retraction of Anticipatory Repudiation
26-1-2-612. "Instalment Contract"; Breach
26-1-2-613. Casualty to Identified Goods
26-1-2-614. Substituted Performance
26-1-2-615. Excuse by Failure of Presupposed Conditions
26-1-2-616. Procedure on Notice Claiming Excuse
26-1-2-701. Remedies for Breach of Collateral Contracts Not Impaired
26-1-2-702. Seller's Remedies on Discovery of Buyer's Insolvency
26-1-2-703. Seller's Remedies in General
26-1-2-705. Seller's Stoppage of Delivery in Transit or Otherwise
26-1-2-706. Seller's Resale, Including Contract for Resale
26-1-2-707. "Person in the Position of a Seller"
26-1-2-708. Seller's Damages for Nonacceptance or Repudiation
26-1-2-709. Action for the Price
26-1-2-710. Seller's Incidental Damages
26-1-2-711. Buyer's Remedies in General; Buyer's Security Interest in Rejected Goods
26-1-2-712. "Cover"; Buyer's Procurement of Substitute Goods
26-1-2-713. Buyer's Damages for Nondelivery or Repudiation
26-1-2-714. Buyer's Damages for Breach in Regard to Accepted Goods
26-1-2-715. Buyer's Incidental and Consequential Damages
26-1-2-716. Buyer's Right to Specific Performance or Replevin
26-1-2-717. Deduction of Damages From the Price
26-1-2-718. Liquidation or Limitation of Damages; Deposits
26-1-2-719. Contractual Modification or Limitation of Remedy
26-1-2-720. Effect of "Cancellation" or "Rescission" on Claims for Antecedent Breach
26-1-2-721. Remedies for Fraud
26-1-2-722. Who Can Sue Third Parties for Injury to Goods
26-1-2-723. Proof of Market Price; Time and Place