Okla. Stat. tit. 12A § 2-507

Current through Laws 2024, c. 453.

Section 2-507 - Effect of Seller's Tender; Delivery on Condition

(1) Tender of delivery is a condition to the buyer's duty to accept the goods and, unless otherwise agreed, to his duty to pay for them. Tender entitles the seller to acceptance of the goods and to payment according to the contract.

(2) Where payment is due and demanded on the delivery to the buyer of goods or documents of title, his right as against the seller to retain or dispose of them is conditional upon his making the payment due.

Okla. Stat. tit. 12A, § 2-507

Laws 1961, p. 90, § 2-507.

Oklahoma Code Comment

(1) Previous Oklahoma law is in accord. Emerson-Brantingham Implement Co. v. Ware, 71 Okl. 19, 174 P. 1066 (1918); Haynes v. Brown, 18 Okl. 389, 89 P. 1124 (1907); Lodwick Lumber Co. v. E. A. Butt Lumber Co., 35 Okl. 797, 131 P. 917 (1913).

(2) This section has a twofold purpose. First, it provides that the buyer's tender of the purchase price is a condition to his rights to the goods, unless otherwise agreed. See also Section 2-511. Previous Oklahoma law is in accord. Weaver v. Bashore, 97 Okl. 237, 223 P. 142 (1924). Second, if payment was demanded on delivery, his rights to retain or dispose of the goods is conditional upon his making the payment. Therefore. if a check is given in payment at the time of delivery, but is thereafter dishonored, he has no rights to retain or dispose of the goods as against the seller. Sec. 2-403, however, provides that the purchaser has the power to convey good title to a bona fide purchaser for value. Also, if the goods were fraudulently obtained without payment, this section would apply. See also Section 2-701 on buyer's insolvency.