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84-2-324. "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 he must tender them on arrival but he assumes no obligation that the goods will arrive unless he has caused the non-arrival; 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 had been casualty to identified goods (section 84-2-613).

History: L. 1965, ch. 564, ยง 58; January 1, 1966.

KANSAS COMMENT, 1996

This section states the common commercial understanding of the shipping term "no arrival, no sale" or the like. Such a term creates a destination contract under which the seller must ship the goods and bear the risk of loss during transit. But if the goods are never delivered, due to transportation hazards for which the seller is not at fault, the seller is excused from liability for non-delivery.


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