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HomeCommercial CodeDiv. 2Ch. 5§ 2510 Risk Of Loss Allocation

§ 2510 Risk Of Loss Allocation

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2510 Risk Of Loss Allocation

Key Takeaways

  • •If the seller sends the wrong or broken stuff, they are responsible if it gets lost or damaged until they fix it or the buyer accepts it.
  • •If the buyer says 'no thanks' to the stuff because it’s not right, the seller is responsible for any loss or damage from the start if the buyer’s insurance doesn’t cover it.
  • •If the buyer refuses to take good stuff they already agreed to buy, the seller can make the buyer responsible for any loss or damage for a little while if the seller’s insurance doesn’t cover it.

Example

You order a new bike online, but when it arrives, the wheels are broken. You tell the seller you don’t want it.

The seller has to deal with it if the bike gets stolen or damaged while they figure out what to do next. They can’t just say it’s your problem.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2510 Risk Of Loss Allocation

(1) Where a tender or delivery of goods so fails to conform to the contract as to give a right of rejection the risk of their loss remains on the seller until cure or acceptance. (2) Where the buyer rightfully revokes acceptance he may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as having rested on the seller from the beginning. (3) Where the buyer as to conforming goods already identified to the contract for sale repudiates or is otherwise in breach before risk of their loss has passed to him, the seller may to the extent of any deficiency in his effective insurance coverage treat the risk of loss as resting on the buyer for a commercially reasonable time. (Enacted by Stats. 1963, Ch. 819.)

Last verified: January 23, 2026

Key Terms

right of rejectionrisk of losscure or acceptancerightfully revokes acceptancecommercially reasonable time

Related Statutes

  • § 10220 Lessee Risk Of Loss
  • § 10531 Third Party Lease Goods Injury
  • § 10501 Lease Default Enforcement Rights
  • § 10502 Lease Default Notice Waiver
  • § 10503 Lease Default Remedies

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2510.
View Official Source