Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract:
(a) a right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods; and if the goods have been destroyed or converted, a right of action is also in the party who either bore the risk of loss under the contract for sale or has since the injury assumed that risk as against the other;
(b) if at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the contract for sale and there is no arrangement between them for disposition of the recovery, his suit or settlement is, subject to his own interest, as a fiduciary for the other party to the contract;
(c) either party may with the consent of the other sue for the benefit of whom it may concern.
History: 1953 Comp., § 50A-2-722, enacted by Laws 1961, ch. 96, § 2-722.
OFFICIAL COMMENTS
UCC Official Comments by ALI & the NCCUSL. Reproduced with permission of the PEB for the UCC. All rights reserved.
Prior uniform statutory provision. — None.
Purposes. — To adopt and extend somewhat the principle of the statutes which provide for suit by the real party in interest. The provisions of this section apply only after identification of the goods. Prior to that time only the seller has a right of action. During the period between identification and final acceptance (except in the case of revocation of acceptance) it is possible for both parties to have the right of action. Even after final acceptance both parties may have the right of action if the seller retains possession or otherwise retains an interest.
"Action". Section 1-201.
"Buyer". Section 2-103.
"Contract for sale". Section 2-106.
"Goods". Section 2-105.
"Party". Section 1-201.
"Rights". Section 1-201.
"Security interest". Section 1-201.
Law reviews. — For article, "Special Property Under the Uniform Commercial Code: A New Concept in Sales," see 4 Nat. Resources J. 98 (1964).
Am. Jur. 2d, A.L.R. and C.J.S. references. — 68A Am. Jur. 2d Secured Transactions § 121.
Recovery of value of use of property wrongfully attached, 45 A.L.R.2d 1221.
77A C.J.S. Sales § 222.
Structure New Mexico Statutes
Chapter 55 - Uniform Commercial Code
Section 55-2-701 - Remedies for breach of collateral contracts not impaired.
Section 55-2-702 - Seller's remedies on discovery of buyer's insolvency.
Section 55-2-703 - Seller's remedies in general.
Section 55-2-705 - Seller's stoppage of delivery in transit or otherwise.
Section 55-2-706 - Seller's resale including contract for resale.
Section 55-2-707 - "Person in the position of a seller."
Section 55-2-708 - Seller's damages for nonacceptance or repudiation.
Section 55-2-709 - Action for the price.
Section 55-2-710 - Seller's incidental damages.
Section 55-2-711 - Buyer's remedies in general; buyer's security interest in rejected goods.
Section 55-2-712 - "Cover"; buyer's procurement of substitute goods.
Section 55-2-713 - Buyer's damages for nondelivery or repudiation.
Section 55-2-714 - Buyer's damages for breach in regard to accepted goods.
Section 55-2-715 - Buyer's incidental and consequential damages.
Section 55-2-716 - Buyer's right to specific performance or replevin.
Section 55-2-717 - Deduction of damages from the price.
Section 55-2-718 - Liquidation or limitation of damages; deposits.
Section 55-2-719 - Contractual modification or limitation of remedy.
Section 55-2-720 - Effect of "cancellation" or "rescission" on claims for antecedent breach.
Section 55-2-721 - Remedies for fraud.
Section 55-2-722 - Who can sue third parties for injury to goods.
Section 55-2-723 - Proof of market price; time and place.
Section 55-2-724 - Admissibility of market quotations.
Section 55-2-725 - Statute of limitations in contracts for sale.