reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-306. Output, requirements and exclusive dealings

30-2-306. Output, requirements and exclusive dealings.
(1) A term which measures the quantity by the output of the seller or the requirements of the buyer means such actual output or requirements as may occur in good faith, except that no quantity unreasonably disproportionate to any stated estimate or in the absence of a stated estimate to any normal or otherwise comparable prior output or requirements may be tendered or demanded.
(2) A lawful agreement by either the seller or the buyer for exclusive dealing in the kind of goods concerned imposes unless otherwise agreed an obligation by the seller to use best efforts to supply the goods and by the buyer to use best efforts to promote their sale.
History: En. Sec. 2-306, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-306.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-307. Delivery in single lot or several lots

30-2-307. Delivery in single lot or several lots.
Unless otherwise agreed all goods called for by a contract for sale must be tendered in a single delivery and payment is due only on such tender but where the circumstances give either party the right to make or demand delivery in lots the price if it can be apportioned may be demanded for each lot.
History: En. Sec. 2-307, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-307.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-308. Absence of specified place for delivery

30-2-308. Absence of specified place for delivery.
Unless otherwise agreed:
(a) the place for delivery of goods is the seller's place of business or if none, the seller's residence; but
(b) in a contract for sale of identified goods which to the knowledge of the parties at the time of contracting are in some other place, that place is the place for their delivery; and
(c) documents of title may be delivered through customary banking channels.
History: En. Sec. 2-308, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-308; amd. Sec. 841, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-309. Absence of specific time provisions -- notice of termination

30-2-309. Absence of specific time provisions -- notice of termination.
(1) The time for shipment or delivery or any other action under a contract if not provided in this chapter or agreed upon shall be a reasonable time.
(2) Where the contract provides for successive performances but is indefinite in duration it is valid for a reasonable time but unless otherwise agreed may be terminated at any time by either party.
(3) Termination of a contract by one party except on the happening of an agreed event requires that reasonable notification be received by the other party and an agreement dispensing with notification is invalid if its operation would be unconscionable.
History: En. Sec. 2-309, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-309.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-310. Open time for payment or running of credit -- authority to ship under reservation

30-2-310. Open time for payment or running of credit -- authority to ship under reservation.
Unless otherwise agreed:
(1) payment is due at the time and place at which the buyer is to receive the goods even though the place of shipment is the place of delivery; and
(2) if the seller is authorized to send the goods the seller may ship them under reservation, and may tender the documents of title, but the buyer may inspect the goods after their arrival before payment is due unless such inspection is inconsistent with the terms of the contract (30-2-513); and
(3) if delivery is authorized and made by way of documents of title otherwise than by subsection (2) then payment is due regardless of where the goods are to be received:
(a) at the time and place at which the buyer is to receive delivery of the tangible documents;
(b) at the time the buyer is to receive delivery of the electronic documents and at the seller's place of business or, if none, the seller's residence; and
(4) where the seller is required or authorized to ship the goods on credit the credit period runs from the time of shipment but postdating the invoice or delaying its dispatch will correspondingly delay the starting of the credit period.
History: En. Sec. 2-310, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-310; amd. Sec. 15, Ch. 575, L. 2005.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-311. Options and cooperation respecting performance

30-2-311. Options and cooperation respecting performance.
(1) An agreement for sale which is otherwise sufficiently definite (subsection (3) of 30-2-204) to be a contract is not made invalid by the fact that it leaves particulars of performance to be specified by one of the parties. Any such specification must be made in good faith and within limits set by commercial reasonableness.
(2) Unless otherwise agreed specifications relating to assortment of the goods are at the buyer's option and except as otherwise provided in subsections (1)(c) and (3) of 30-2-319 specifications or arrangements relating to shipment are at the seller's option.
(3) Where the specification would materially affect the other party's performance but is not seasonably made or where one party's cooperation is necessary to the agreed performance of the other but is not seasonably forthcoming, the other party in addition to all other remedies:
(a) is excused for any resulting delay in that party's own performance; and
(b) may also either proceed to perform in any reasonable manner or after the time for a material part of that party's own performance treat the failure to specify or to cooperate as a breach by failure to deliver or accept the goods.
History: En. Sec. 2-311, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-311; amd. Sec. 842, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-312. Warranty of title and against infringement -- buyer's obligation against infringement

30-2-312. Warranty of title and against infringement -- buyer's obligation against infringement.
(1) Subject to subsection (2) there is in a contract for sale a warranty by the seller that:
(a) the title conveyed shall be good, and its transfer rightful; and
(b) the goods shall be delivered free from any security interest or other lien or encumbrance of which the buyer at the time of contracting has no knowledge.
(2) A warranty under subsection (1) will be excluded or modified only by specific language or by circumstances which give the buyer reason to know that the person selling does not claim title or that the seller is purporting to sell only the right or title as the seller or a third person may have.
(3) Unless otherwise agreed a seller who is a merchant regularly dealing in goods of the kind warrants that the goods shall be delivered free of the rightful claim of any third person by way of infringement or the like but a buyer who furnishes specifications to the seller must hold the seller harmless against any such claim which arises out of compliance with the specifications.
History: En. Sec. 2-312, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-312; amd. Sec. 843, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-313. Express warranties by affirmation, promise, description, sample

30-2-313. Express warranties by affirmation, promise, description, sample.
(1) Express warranties by the seller are created as follows:
(a) Any affirmation of fact or promise made by the seller to the buyer which relates to the goods and becomes part of the basis of the bargain creates an express warranty that the goods shall conform to the affirmation or promise.
(b) Any description of the goods which is made part of the basis of the bargain creates an express warranty that the goods shall conform to the description.
(c) Any sample or model which is made part of the basis of the bargain creates an express warranty that the whole of the goods shall conform to the sample or model.
(2) It is not necessary to the creation of an express warranty that the seller use formal words such as "warrant" or "guarantee" or that the seller have a specific intention to make a warranty, but an affirmation merely of the value of the goods or a statement purporting to be merely the seller's opinion or commendation of the goods does not create a warranty.
History: En. Sec. 2-313, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-313; amd. Sec. 844, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-314. Implied warranty -- merchantability -- usage of trade

30-2-314. Implied warranty -- merchantability -- usage of trade.
(1) Unless excluded or modified (30-2-316), a warranty that the goods shall be merchantable is implied in a contract for their sale if the seller is a merchant with respect to goods of that kind. Under this section the serving for value of food or drink to be consumed either on the premises or elsewhere is a sale.
(2) Goods to be merchantable must be at least such as:
(a) pass without objection in the trade under the contract description; and
(b) in the case of fungible goods, are of fair average quality within the description; and
(c) are fit for the ordinary purposes for which such goods are used; and
(d) run, within the variations permitted by the agreement, of even kind, quality and quantity within each unit and among all units involved; and
(e) are adequately contained, packaged, and labeled as the agreement may require; and
(f) conform to the promises or affirmations of fact made on the container or label if any.
(3) Unless excluded or modified (30-2-316) other implied warranties may arise from course of dealing or usage of trade.
History: En. Sec. 2-314, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-314.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-315. Implied warranty -- fitness for particular purpose

30-2-315. Implied warranty -- fitness for particular purpose.
Where the seller at the time of contracting has reason to know any particular purpose for which the goods are required and that the buyer is relying on the seller's skill or judgment to select or furnish suitable goods, there is unless excluded or modified under the next section an implied warranty that the goods shall be fit for such purpose.
History: En. Sec. 2-315, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-315.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-316. Exclusion or modification of warranties

30-2-316. Exclusion or modification of warranties.
(1) Words or conduct relevant to the creation of an express warranty and words or conduct tending to negate or limit warranty shall be construed wherever reasonable as consistent with each other; but subject to the provisions of this chapter on parol or extrinsic evidence (30-2-202) negation or limitation is inoperative to the extent that such construction is unreasonable.
(2) Subject to subsection (3), to exclude or modify the implied warranty of merchantability or any part of it the language must mention merchantability and in case of a writing must be conspicuous, and to exclude or modify any implied warranty of fitness the exclusion must be by a writing and conspicuous. Language to exclude all implied warranties of fitness is sufficient if it states, for example, that "There are no warranties which extend beyond the description on the face hereof."
(3) Notwithstanding subsection (2):
(a) unless the circumstances indicate otherwise, all implied warranties are excluded by expressions like "as is", "with all faults" or other language which in common understanding calls the buyer's attention to the exclusion of warranties and makes plain that there is no implied warranty;
(b) when the buyer before entering into the contract has examined the goods or the sample or model as fully as desired or has refused to examine the goods there is no implied warranty with regard to defects which an examination ought in the circumstances to have revealed to the buyer;
(c) an implied warranty can also be excluded or modified by course of dealing or course of performance or usage of trade;
(d) in sales of cattle, hogs, sheep, or horses, there are no implied warranties, as defined in this chapter, that the cattle, hogs, sheep, or horses are free from sickness or disease; and
(e) in sales of any seed for planting (including both botanical and vegetative types of seed, whether certified or not), there are no implied warranties, as defined in this chapter, that the seeds are free from disease, virus, or any kind of pathogenic organisms.
(4) Remedies for breach of warranty can be limited in accordance with the provisions of this chapter on liquidation or limitation of damages and on contractual modification of remedy (30-2-718 and 30-2-719).
History: En. Sec. 2-316, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-316; amd. Sec. 1, Ch. 95, L. 1979; amd. Sec. 1, Ch. 33, L. 1983; amd. Sec. 845, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-317. Cumulation and conflict of warranties express or implied

30-2-317. Cumulation and conflict of warranties express or implied.
Warranties whether express or implied shall be construed as consistent with each other and as cumulative, but if such construction is unreasonable the intention of the parties shall determine which warranty is dominant. In ascertaining that intention the following rules apply:
(a) Exact or technical specifications displace an inconsistent sample or model or general language of description.
(b) A sample from an existing bulk displaces inconsistent general language of description.
(c) Express warranties displace inconsistent implied warranties other than an implied warranty of fitness for a particular purpose.
History: En. Sec. 2-317, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-317.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-318. Third-party beneficiaries of warranties express or implied

30-2-318. Third-party beneficiaries of warranties express or implied.
A seller's warranty whether express or implied extends to any natural person who is in the family or household of the buyer or who is a guest in the buyer's home if it is reasonable to expect that the person may use, consume or be affected by the goods and who is injured in person by breach of the warranty. A seller may not exclude or limit the operation of this section.
History: En. Sec. 2-318, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-318; amd. Sec. 846, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-319. F.O.B. and F.A.S. terms

30-2-319. F.O.B. and F.A.S. terms.
(1) Unless otherwise agreed the term F.O.B. (which means "free on board") at a named place, even though used only in connection with the stated price, is a delivery term under which:
(a) when the term is F.O.B. the place of shipment, the seller must at that place ship the goods in the manner provided in this chapter (30-2-504) and bear the expense and risk of putting them into the possession of the carrier; or
(b) when the term is F.O.B. the place of destination, the seller must at the seller's own expense and risk transport the goods to that place and there tender delivery of them in the manner provided in this chapter (30-2-503);
(c) when under either subsection (1)(a) or (1)(b) the term is also F.O.B. vessel, car or other vehicle, the seller must in addition at the seller's own expense and risk load the goods on board. If the term is F.O.B. vessel the buyer must name the vessel and in an appropriate case the seller must comply with the provisions of this chapter on the form of bill of lading (30-2-323).
(2) Unless otherwise agreed the term F.A.S. vessel (which means "free alongside") at a named port, even though used only in connection with the stated price, is a delivery term under which the seller must:
(a) at the seller's own expense and risk deliver the goods alongside the vessel in the manner usual in that port or on a dock designated and provided by the buyer; and
(b) obtain and tender a receipt for the goods in exchange for which the carrier is under a duty to issue a bill of lading.
(3) Unless otherwise agreed in any case falling within subsection (1)(a) or (1)(c) or subsection (2) the buyer must seasonably give any needed instructions for making delivery, including when the term is F.A.S. or F.O.B. the loading berth of the vessel and in an appropriate case its name and sailing date. The seller may treat the failure of needed instructions as a failure of cooperation under this chapter (30-2-311). The seller may also at the seller's option move the goods in any reasonable manner preparatory to delivery or shipment.
(4) Under the term F.O.B. vessel or F.A.S. unless otherwise agreed the buyer must make payment against tender of the required documents and the seller may not tender nor the buyer demand delivery of the goods in substitution for the documents.
History: En. Sec. 2-319, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-319; amd. Sec. 847, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-320. C.I.F. and C.&F. terms

30-2-320. C.I.F. and C.&F. terms.
(1) The term C.I.F. means that the price includes in a lump sum the cost of the goods and the insurance and freight to the named destination. The term C.&F. or C.F. means that the price includes cost and freight to the named destination.
(2) Unless otherwise agreed and even though used only in connection with the stated price and destination, the term C.I.F. destination or its equivalent requires the seller at the seller's own expense and risk to:
(a) put the goods into the possession of a carrier at the port for shipment and obtain a negotiable bill or bills of lading covering the entire transportation to the named destination; and
(b) load the goods and obtain a receipt from the carrier, which may be contained in the bill of lading, showing that the freight has been paid or provided for; and
(c) obtain a policy or certificate of insurance, including any war risk insurance, of a kind and on terms then current at the port of shipment in the usual amount, in the currency of the contract, shown to cover the same goods covered by the bill of lading and providing for payment of loss to the order of the buyer or for the account of whom it may concern; but the seller may add to the price the amount of the premium for any such war risk insurance; and
(d) prepare an invoice of the goods and procure any other documents required to effect shipment or to comply with the contract; and
(e) forward and tender with commercial promptness all the documents in due form and with any endorsement necessary to perfect the buyer's rights.
(3) Unless otherwise agreed the term C.&F. or its equivalent has the same effect and imposes upon the seller the same obligations and risks as a C.I.F. term except the obligation as to insurance.
(4) Under the term C.I.F. or C.&F. unless otherwise agreed the buyer must make payment against tender of the required documents and the seller may not tender nor the buyer demand delivery of the goods in substitution for the documents.
History: En. Sec. 2-320, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-320; amd. Sec. 848, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-321. C.I.F. or C.&F. -- "net landed weights" -- "payment on arrival" -- warranty of condition on arrival

30-2-321. C.I.F. or C.&F. -- "net landed weights" -- "payment on arrival" -- warranty of condition on arrival.
Under a contract containing a term C.I.F. or C.&F.:
(1) Where the price is based on or is to be adjusted according to "net landed weights", "delivered weights", "out turn" quantity or quality or the like, unless otherwise agreed the seller must reasonably estimate the price. The payment due on tender of the documents called for by the contract is the amount so estimated, but after final adjustment of the price a settlement must be made with commercial promptness.
(2) An agreement described in subsection (1) or any warranty of quality or condition of the goods on arrival places upon the seller the risk of ordinary deterioration, shrinkage and the like in transportation but has no effect on the place or time of identification to the contract for sale or delivery or on the passing of the risk of loss.
(3) Unless otherwise agreed where the contract provides for payment on or after arrival of the goods the seller must before payment allow such preliminary inspection as is feasible; but if the goods are lost delivery of the documents and payment are due when the goods should have arrived.
History: En. Sec. 2-321, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-321.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-322. Delivery "ex-ship"

30-2-322. Delivery "ex-ship".
(1) Unless otherwise agreed a term for delivery of goods "ex-ship" (which means from the carrying vessel) or in equivalent language is not restricted to a particular ship and requires delivery from a ship which has reached a place at the named port of destination where goods of the kind are usually discharged.
(2) Under such a term unless otherwise agreed:
(a) the seller must discharge all liens arising out of the carriage and furnish the buyer with a direction which puts the carrier under a duty to deliver the goods; and
(b) the risk of loss does not pass to the buyer until the goods leave the ship's tackle or are otherwise properly unloaded.
History: En. Sec. 2-322, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-322.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-323. Form of bill of lading required in overseas shipment -- "overseas"

30-2-323. Form of bill of lading required in overseas shipment -- "overseas".
(1) Where the contract contemplates overseas shipment and contains a term C.I.F. or C.&F. or F.O.B. vessel, the seller unless otherwise agreed must obtain a negotiable bill of lading stating that the goods have been loaded on board or, in the case of a term C.I.F. or C.&F., received for shipment.
(2) Where in a case within subsection (1) a tangible bill of lading has been issued in a set of parts, unless otherwise agreed if the documents are not to be sent from abroad the buyer may demand tender of the full set; otherwise only one part of the bill of lading need be tendered. Even if the agreement expressly requires a full set:
(a) due tender of a single part is acceptable within the provisions of this chapter on cure of improper delivery (subsection (1) of 30-2-508); and
(b) even though the full set is demanded, if the documents are sent from abroad the person tendering an incomplete set may nevertheless require payment upon furnishing an indemnity which the buyer in good faith deems adequate.
(3) A shipment by water or by air or a contract contemplating such shipment is "overseas" insofar as by usage of trade or agreement it is subject to the commercial, financing or shipping practices characteristic of international deep water commerce.
History: En. Sec. 2-323, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-323; amd. Sec. 16, Ch. 575, L. 2005.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-324. "No arrival, no sale" term

30-2-324. "No arrival, no sale" term.
Under a term "no arrival, no sale" or terms of like meaning, unless otherwise agreed:
(a) the seller must properly ship conforming goods and if they arrive by any means the seller must tender them on arrival but the seller assumes no obligation that the goods will arrive unless the seller has caused the nonarrival; and
(b) where without fault of the seller the goods are in part lost or have so deteriorated as no longer to conform to the contract or arrive after the contract time, the buyer may proceed as if there has been casualty to identified goods (30-2-613).
History: En. Sec. 2-324, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-324; amd. Sec. 849, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-325. "Letter of credit" term -- "confirmed credit"

30-2-325. "Letter of credit" term -- "confirmed credit".
(1) Failure of the buyer seasonably to furnish an agreed letter of credit is a breach of the contract for sale.
(2) The delivery to the seller of a proper letter of credit suspends the buyer's obligation to pay. If the letter of credit is dishonored, the seller may on seasonable notification to the buyer require payment directly from the buyer.
(3) Unless otherwise agreed the term "letter of credit" or "banker's credit" in a contract for sale means an irrevocable credit issued by a financing agency of good repute and, where the shipment is overseas, of good international repute. The term "confirmed credit" means that the credit must also carry the direct obligation of such an agency which does business in the seller's financial market.
History: En. Sec. 2-325, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-325; amd. Sec. 850, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-326. Sale on approval and sale or return -- rights of creditors

30-2-326. Sale on approval and sale or return -- rights of creditors.
(1) Unless otherwise agreed, if delivered goods may be returned by the buyer even though they conform to the contract, the transaction is:
(a) a "sale on approval" if the goods are delivered primarily for use; and
(b) a "sale or return" if the goods are delivered primarily for resale.
(2) Goods held on approval are not subject to the claims of the buyer's creditors until acceptance; goods held on sale or return are subject to such claims while in the buyer's possession.
(3) Any "or return" term of a contract for sale is to be treated as a separate contract for sale within the statute of frauds section of this chapter (30-2-201) and as contradicting the sale aspect of the contract within the provisions of this chapter on parol or extrinsic evidence (30-2-202).
History: En. Sec. 2-326, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-326; amd. Sec. 134, Ch. 305, L. 1999.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 3. General Obligation and Construction of Contract › 30-2-327. Special incidents of sale on approval and sale or return

30-2-327. Special incidents of sale on approval and sale or return.
(1) Under a sale on approval unless otherwise agreed:
(a) although the goods are identified to the contract the risk of loss and the title do not pass to the buyer until acceptance; and
(b) use of the goods consistent with the purpose of trial is not acceptance but failure seasonably to notify the seller of election to return the goods is acceptance, and if the goods conform to the contract acceptance of any part is acceptance of the whole; and
(c) after due notification of election to return, the return is at the seller's risk and expense but a merchant buyer must follow any reasonable instructions.
(2) Under a sale or return unless otherwise agreed:
(a) the option to return extends to the whole or any commercial unit of the goods while in substantially their original condition, but must be exercised seasonably; and
(b) the return is at the buyer's risk and expense.
History: En. Sec. 2-327, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-327.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 4. Title, Creditors, and Good Faith Purchasers › 30-2-402. Rights of seller's creditors against sold goods

30-2-402. Rights of seller's creditors against sold goods.
(1) Except as provided in subsections (2) and (3), rights of unsecured creditors of the seller with respect to goods which have been identified to a contract for sale are subject to the buyer's rights to recover the goods under this chapter (30-2-502 and 30-2-716).
(2) A creditor of the seller may treat a sale or an identification of goods to a contract for sale as void if as against the creditor a retention of possession by the seller is fraudulent under any rule of law of the state where the goods are situated, except that retention of possession in good faith and current course of trade by a merchant-seller for a commercially reasonable time after a sale or identification is not fraudulent.
(3) Nothing in this chapter shall be deemed to impair the rights of creditors of the seller:
(a) under the provisions of the Chapter on Secured Transactions (Chapter 9A); or
(b) where identification to the contract or delivery is made not in current course of trade but in satisfaction of or as security for a preexisting claim for money, security or the like and is made under circumstances which under any rule of law of the state where the goods are situated would apart from this chapter constitute the transaction a fraudulent transfer or voidable preference.
History: En. Sec. 2-402, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-402; amd. Sec. 852, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 4. Title, Creditors, and Good Faith Purchasers › 30-2-403. Power to transfer -- good faith purchase of goods -- "entrusting"

30-2-403. Power to transfer -- good faith purchase of goods -- "entrusting".
(1) A purchaser of goods acquires all title which the purchaser's transferor had or had power to transfer except that a purchaser of a limited interest acquires rights only to the extent of the interest purchased. A person with voidable title has power to transfer a good title to a good faith purchaser for value. When goods have been delivered under a transaction of purchase the purchaser has the power even though:
(a) the transferor was deceived as to the identity of the purchaser;
(b) the delivery was in exchange for a check which is later dishonored;
(c) it was agreed that the transaction was to be a "cash sale"; or
(d) the delivery was procured through fraud punishable as theft under the criminal law.
(2) Any entrusting of possession of goods to a merchant who deals in goods of that kind gives the merchant power to transfer all rights of the entruster to a buyer in ordinary course of business.
(3) "Entrusting" includes any delivery and any acquiescence in retention of possession regardless of any condition expressed between the parties to the delivery or acquiescence and regardless of whether the procurement of the entrusting or the possessor's disposition of the goods has been such as to constitute theft under the criminal law.
(4) The rights of other purchasers of goods and of lien creditors are governed by the chapters on secured transactions (chapter 9A) and documents of title (chapter 7).
History: En. Sec. 2-403, Ch. 264, L. 1963; amd. Sec. 63, Ch. 359, L. 1977; R.C.M. 1947, 87A-2-403; amd. Sec. 5, Ch. 410, L. 1991; amd. Sec. 853, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-501. Insurable interest in goods -- manner of identification of goods

30-2-501. Insurable interest in goods -- manner of identification of goods.
(1) The buyer obtains a special property and an insurable interest in goods by identification of existing goods as goods to which the contract refers even though the goods so identified are nonconforming and the buyer has an option to return or reject them. Such identification can be made at any time and in any manner explicitly agreed to by the parties. In the absence of explicit agreement identification occurs:
(a) when the contract is made if it is for the sale of goods already existing and identified;
(b) if the contract is for the sale of future goods other than those described in subsection (1)(c), when goods are shipped, marked or otherwise designated by the seller as goods to which the contract refers;
(c) when the crops are planted or otherwise become growing crops or the young are conceived if the contract is for the sale of unborn young to be born within 12 months after contracting or for the sale of crops to be harvested within 12 months or the next normal harvest season after contracting whichever is longer.
(2) The seller retains an insurable interest in goods so long as title to or any security interest in the goods remains in the seller and where the identification is by the seller alone the seller may until default or insolvency or notification to the buyer that the identification is final substitute other goods for those identified.
(3) Nothing in this section impairs any insurable interest recognized under any other statute or rule of law.
History: En. Sec. 2-501, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-501; amd. Sec. 854, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-502. Buyer's right to goods on seller's insolvency

30-2-502. Buyer's right to goods on seller's insolvency.
(1) Subject to subsections (2) and (3) and even though the goods have not been shipped a buyer who has paid a part or all of the price of goods in which the buyer has a special property under the provisions of the immediately preceding section may on making and keeping good a tender of any unpaid portion of their price recover them from the seller if:
(a) in the case of goods bought for personal, family, or household purposes, the seller repudiates or fails to deliver as required by the contract; or
(b) in other cases, the seller becomes insolvent within 10 days after receipt of the first installment on their price.
(2) The buyer's right to recover the goods under subsection (1)(a) vests upon acquisition of a special property, even if the seller had not then repudiated or failed to deliver.
(3) If the identification creating the buyer's special property has been made by the buyer, the buyer acquires the right to recover the goods only if they conform to the contract for sale.
History: En. Sec. 2-502, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-502; amd. Sec. 135, Ch. 305, L. 1999.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-503. Manner of seller's tender of delivery

30-2-503. Manner of seller's tender of delivery.
(1) Tender of delivery requires that the seller put and hold conforming goods at the buyer's disposition and give the buyer any notification reasonably necessary to enable the buyer to take delivery. The manner, time and place for tender are determined by the agreement and this chapter, and in particular:
(a) tender must be at a reasonable hour, and if it is of goods they must be kept available for the period reasonably necessary to enable the buyer to take possession; but
(b) unless otherwise agreed the buyer must furnish facilities reasonably suited to the receipt of the goods.
(2) Where the case is within the next section respecting shipment tender requires that the seller comply with its provisions.
(3) Where the seller is required to deliver at a particular destination tender requires that the seller comply with subsection (1) and also in any appropriate case tender documents as described in subsections (4) and (5) of this section.
(4) Where goods are in the possession of a bailee and are to be delivered without being moved:
(a) tender requires that the seller either tender a negotiable document of title covering such goods or procure acknowledgment by the bailee of the buyer's right to possession of the goods; but
(b) tender to the buyer of a nonnegotiable document of title or of a record directing the bailee to deliver is sufficient tender unless the buyer seasonably objects, and except as otherwise provided in chapter 9A receipt by the bailee of notification of the buyer's rights fixes those rights as against the bailee and all third persons; but risk of loss of the goods and of any failure by the bailee to honor the nonnegotiable document of title or to obey the direction remains on the seller until the buyer has had a reasonable time to present the document or direction, and a refusal by the bailee to honor the document or to obey the direction defeats the tender.
(5) Where the contract requires the seller to deliver documents:
(a) the seller must tender all such documents in correct form; and
(b) tender through customary banking channels is sufficient and dishonor of a draft accompanying the documents constitutes nonacceptance or rejection.
History: En. Sec. 2-503, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-503; amd. Sec. 18, Ch. 575, L. 2005.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-504. Shipment by seller

30-2-504. Shipment by seller.
Where the seller is required or authorized to send the goods to the buyer and the contract does not require the seller to deliver them at a particular destination, then unless otherwise agreed the seller must:
(1) put the goods in the possession of such a carrier and make such a contract for their transportation as may be reasonable having regard to the nature of the goods and other circumstances of the case; and
(2) obtain and promptly deliver or tender in due form any document necessary to enable the buyer to obtain possession of the goods or otherwise required by the agreement or by usage of trade; and
(3) promptly notify the buyer of the shipment. Failure to notify the buyer under this subsection or to make a proper contract under subsection (1) is a ground for rejection only if material delay or loss ensues.
History: En. Sec. 2-504, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-504; amd. Sec. 855, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-505. Seller's shipment under reservation

30-2-505. Seller's shipment under reservation.
(1) Where the seller has identified goods to the contract by or before shipment:
(a) the seller's procurement of a negotiable bill of lading to the seller's own order or otherwise reserves in the seller a security interest in the goods. The seller's procurement of the bill to the order of a financing agency or of the buyer indicates in addition only the seller's expectation of transferring that interest to the person named.
(b) a nonnegotiable bill of lading to the seller or the seller's nominee reserves possession of the goods as security but except in a case of conditional delivery (subsection (2) of 30-2-507) a nonnegotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession of the bill of lading.
(2) When shipment by the seller with reservation of a security interest is in violation of the contract for sale it constitutes an improper contract for transportation within the preceding section but impairs neither the rights given to the buyer by shipment and identification of the goods to the contract nor the seller's powers as a holder of a negotiable document.
History: En. Sec. 2-505, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-505; amd. Sec. 856, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-506. Rights of financing agency

30-2-506. Rights of financing agency.
(1) A financing agency by paying or purchasing for value a draft which relates to a shipment of goods acquires to the extent of the payment or purchase and in addition to its own rights under the draft and any document of title securing it any rights of the shipper in the goods including the right to stop delivery and the shipper's right to have the draft honored by the buyer.
(2) The right to reimbursement of a financing agency which has in good faith honored or purchased the draft under commitment to or authority from the buyer is not impaired by subsequent discovery of defects with reference to any relevant document which was apparently regular.
History: En. Sec. 2-506, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-506; amd. Sec. 19, Ch. 575, L. 2005.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-507. Effect of seller's tender -- delivery on condition

30-2-507. 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 the buyer's 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, the buyer's right as against the seller to retain or dispose of them is conditional upon the buyer making the payment due.
History: En. Sec. 2-507, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-507; amd. Sec. 857, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-508. Cure by seller of improper tender or delivery -- replacement

30-2-508. Cure by seller of improper tender or delivery -- replacement.
(1) Where any tender or delivery by the seller is rejected because nonconforming and the time for performance has not yet expired, the seller may seasonably notify the buyer of the seller's intention to cure and may then within the contract time make a conforming delivery.
(2) Where the buyer rejects a nonconforming tender which the seller had reasonable grounds to believe would be acceptable with or without money allowance the seller may if the seller seasonably notifies the buyer have a further reasonable time to substitute a conforming tender.
History: En. Sec. 2-508, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-508; amd. Sec. 858, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-509. Risk of loss in the absence of breach

30-2-509. Risk of loss in the absence of breach.
(1) Where 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 delivered to the carrier even though the shipment is under reservation (30-2-505); but
(b) if it does require the seller to deliver them at a particular destination and the goods are there tendered while in the possession of the carrier, the risk of loss passes to the buyer when the goods are there so tendered as to enable the buyer to take delivery.
(2) Where 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; or
(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 nonnegotiable document of title or other direction to deliver in a record, as provided in 30-2-503(4)(b).
(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 (30-2-327) and on effect of breach on risk of loss (30-2-510).
History: En. Sec. 2-509, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-509; amd. Sec. 20, Ch. 575, L. 2005; amd. Sec. 859, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-510. Effect of breach on risk of loss

30-2-510. Effect of breach on risk of loss.
(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 the buyer may to the extent of any deficiency in the buyer's 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 the buyer, the seller may to the extent of any deficiency in the seller's effective insurance coverage treat the risk of loss as resting on the buyer for a commercially reasonable time.
History: En. Sec. 2-510, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-510; amd. Sec. 860, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-511. Tender of payment by buyer -- payment by check

30-2-511. Tender of payment by buyer -- payment by check.
(1) Unless otherwise agreed, tender of payment is a condition to the seller's duty to tender and complete any delivery.
(2) Tender of payment is sufficient when made by any means or in any manner current in the ordinary course of business unless the seller demands payment in legal tender and gives any extension of time reasonably necessary to procure it.
(3) Subject to the provisions of this code on the effect of an instrument on an obligation (30-3-310), payment by check is conditional and is defeated as between the parties by dishonor of the check on due presentment.
History: En. Sec. 2-511, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-511; amd. Sec. 6, Ch. 410, L. 1991.
2023 Montana Code Annotated › Title 30. Trade and Commerce › Chapter 2. Uniform Commercial Code Sales › Part 5. Performance › 30-2-512. Payment by buyer before inspection

30-2-512. Payment by buyer before inspection.
(1) Where the contract requires payment before inspection nonconformity of the goods does not excuse the buyer from so making payment unless:
(a) the nonconformity appears without inspection; or
(b) despite tender of the required documents the circumstances would justify injunction against honor under the provisions of this code (30-5-129(2)).
(2) Payment pursuant to subsection (1) does not constitute an acceptance of goods or impair the buyer's right to inspect or any of the buyer's remedies.
History: En. Sec. 2-512, Ch. 264, L. 1963; R.C.M. 1947, 87A-2-512; amd. Sec. 3, Ch. 536, L. 1997.