2 chapters · 613 sections in this title.
Mich. Comp. Laws § 440.2313 Creation of express warranties by seller.
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Sec. 2313. (1) Express warranties by the seller are created as follows: (a) An 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 af…
Mich. Comp. Laws § 440.2313b Express warranty; extension; merchant or warrantor to give purchaser writing stating time period.
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Sec. 2313b. An express warranty covering goods sold to a purchaser in this state shall be extended by a period equal to the number of days prescribed in subdivisions (a) and (b), if the cumulative number of days is more than either 10 days or 10% of the number of days of the warr…
Mich. Comp. Laws § 440.2314 Implied warranty; merchantability, course of dealing, usage of trade.
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Sec. 2314. (1) Unless excluded or modified (section 2316), 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 consu…
Mich. Comp. Laws § 440.2315 Implied warranty; fitness for particular purpose.
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Sec. 2315. 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 ne…
Mich. Comp. Laws § 440.2316 Words or conduct relevant to creation of express warranty and tending to negate or limit warranty; construction; excluding or modifying implied warranty of merchantability and implied warranty of fitness; language; example; limiting remedies for breach of warranty.
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Sec. 2316. (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 article on parol or extrinsic evide…
Mich. Comp. Laws § 440.2317 Warranties; cumulation and conflict.
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Sec. 2317. 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 rule…
Mich. Comp. Laws § 440.2318 Warranties; third party beneficiaries.
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Sec. 2318. A seller's warranty whether express or implied extends to any natural person who is in the family or household of his buyer or who is a guest in his home if it is reasonable to expect that such person may use, consume or be affected by the goods and who is injured in p…
Mich. Comp. Laws § 440.2319 F.O.B. and F.A.S. terms.
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Sec. 2319. (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 t…
Mich. Comp. Laws § 440.2320 C.I.F. and C. & F. terms.
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Sec. 2320. (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 so includes cost and freight to the named destination. (2) Unless otherwise agree…
Mich. Comp. Laws § 440.2321 C.I.F. and C. & F. terms, net landed weights, delivered weights, out turn; warranty of condition on arrival, inspection before payment.
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Sec. 2321. 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…
Mich. Comp. Laws § 440.2322 Delivery exship.
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Sec. 2322. (1) Unless otherwise agreed a term for delivery of goods "exship" (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 …
Mich. Comp. Laws § 440.2323 Overseas shipment; bill of lading, form.
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Sec. 2323. (1) If a 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. &…
Mich. Comp. Laws § 440.2324 No arrival, no sale terms.
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Sec. 2324. 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…
Mich. Comp. Laws § 440.2325 Letter of credit or banker's credit; confirmed credit; definitions.
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Sec. 2325. (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 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 seas…
Mich. Comp. Laws § 440.2326 Transaction as “sale on approval” or “sale or return” if delivered goods returnable by buyer; claims of creditors; effect of “or return” term of contract for sale; work of fine art not subject to claims of art dealer's creditors; “art dealer,”“commission,” and “fine art” defined.
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Sec. 2326. (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 prima…
Mich. Comp. Laws § 440.2327 Sale on approval; sale or return; special incidents.
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Sec. 2327. (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 fail…
Mich. Comp. Laws § 440.2328 Sale by auction; sale with reserve; forced sale.
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Sec. 2328. (1) In a sale by auction if goods are put up in lots each lot is the subject of a separate sale. (2) A sale by auction is complete when the auctioneer so announces by the fall of the hammer or in other customary manner. Where a bid is made while the hammer is falling i…
Mich. Comp. Laws § 440.2401 Passing of title; reservation for security; limited application of section; rejection; revesting.
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Sec. 2401. Each provision of this article with regard to the rights, obligations, and remedies of the seller, the buyer, purchasers, or other third parties applies irrespective of title to the goods except where the provisions refers to the title. In situations that are not cover…
Mich. Comp. Laws § 440.2402 Rights of seller's creditors against sold goods.
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Sec. 2402. (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 article (sections 2502 and 2716). (2…
Mich. Comp. Laws § 440.2403 Purchasers and transferees; title, rights, and powers to transfer goods; entrusting.
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Sec. 2403. (1) A purchaser of goods acquires all title which his 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 …
Mich. Comp. Laws § 440.2501 Special property and insurable interest in goods; identification of goods.
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Sec. 2501. (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 he has an option to return or reject them. Such identificatio…
Mich. Comp. Laws § 440.2502 Special property and insurable interest in goods.
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Sec. 2502. (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 he or she has a special property under the provisions of the immediately preceding section may on making and keeping…
Mich. Comp. Laws § 440.2503 Tender of delivery by seller; shipment; destination; goods in possession of bailee; documents.
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Sec. 2503. (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 agreemen…
Mich. Comp. Laws § 440.2504 Delivery by shipment; contract with carrier, documents, notice.
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Sec. 2504. Where the seller is required or authorized to send the goods to the buyer and the contract does not require him to deliver them at a particular destination, then unless otherwise agreed he must (a) put the goods in the possession of such a carrier and make such a contr…
Mich. Comp. Laws § 440.2505 Shipment with and without reservation by seller.
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Sec. 2505. (1) Both of the following apply if a seller has identified goods to a 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'…
Mich. Comp. Laws § 440.2506 Financing agency; rights; reimbursement.
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Sec. 2506. (1) A financing agency by paying or purchasing for value a draft that 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 t…
Mich. Comp. Laws § 440.2507 Tender of delivery; conditions, payment.
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Sec. 2507. (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 demande…
Mich. Comp. Laws § 440.2508 Improper delivery; cure, replacement.
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Sec. 2508. (1) Where any tender or delivery by the seller is rejected because non-conforming and the time for performance has not yet expired, the seller may seasonably notify the buyer of his intention to cure and may then within the contract time make a conforming delivery. (2)…
Mich. Comp. Laws § 440.2509 Risk of loss; absence of breach.
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Sec. 2509. (1) The following apply if a contract requires or authorizes the seller to ship goods by carrier: (a) If the contract does not require the seller to deliver the goods at a particular destination, the risk of loss passes to the buyer when the goods are duly delivered to…
Mich. Comp. Laws § 440.2510 Risk of loss; effect of breach.
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Sec. 2510. (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 i…
Mich. Comp. Laws § 440.2511 Payment by buyer; tender, check.
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Sec. 2511. (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 payme…
Mich. Comp. Laws § 440.2512 Payment by buyer; inspection, nonconforming goods.
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Sec. 2512. (1) If 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 i…
Mich. Comp. Laws § 440.2513 Inspection by buyer; time, expenses, place, method.
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Sec. 2513. (1) Unless otherwise agreed and subject to subsection (3), where goods are tendered or delivered or identified to the contract for sale, the buyer has a right before payment or acceptance to inspect them at any reasonable place and time and in any reasonable manner. Wh…
Mich. Comp. Laws § 440.2514 Documents; delivery to drawee on acceptance or payment.
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Sec. 2514. Unless otherwise agreed documents against which a draft is drawn are to be delivered to the drawee on acceptance of the draft if it is payable more than 3 days after presentment; otherwise, only on payment.
Mich. Comp. Laws § 440.2515 Adjustment of dispute; preservation of evidence, inspection.
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Sec. 2515. In furtherance of the adjustment of any claim or dispute (a) either party on reasonable notification to the other and for the purpose of ascertaining the facts and preserving evidence has the right to inspect, test and sample the goods including such of them as may be …
Mich. Comp. Laws § 440.2601 Improper delivery; buyer's rights.
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Sec. 2601. Subject to the provisions of this article on breach in installment contracts (section 2612) and unless otherwise agreed under the sections on contractual limitations of remedy (sections 2718 and 2719), if the goods or the tender of delivery fail in any respect to confo…
Mich. Comp. Laws § 440.2602 Rejection of goods.
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Sec. 2602. (1) Rejection of goods must be within a reasonable time after their delivery or tender. It is ineffective unless the buyer seasonably notifies the seller. (2) Subject to the provisions of the 2 following sections on rejected goods (sections 2603 and 2604), (a) after re…
Mich. Comp. Laws § 440.2603 Rejection of goods; merchant buyer's duties.
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Sec. 2603. (1) Subject to any security interest in the buyer (subsection (3) of section 2711), when the seller has no agent or place of business at the market of rejection a merchant buyer is under a duty after rejection of goods in his possession or control to follow any reasona…
Mich. Comp. Laws § 440.2604 Rejection of goods; buyer's options.
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Sec. 2604. Subject to the provisions of the immediately preceding section on perishables if the seller gives no instructions within a reasonable time after notification of rejection the buyer may store the rejected goods for the seller's account or reship them to him or resell th…
Mich. Comp. Laws § 440.2605 Rejection of goods; failure of buyer to particularize defect.
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Sec. 2605. (1) A buyer's failure to state in connection with rejection a particular defect that is ascertainable by reasonable inspection precludes the buyer from relying on the unstated defect to justify rejection or to establish breach if either of the following applies: (a) Th…
Mich. Comp. Laws § 440.2606 Acceptance of goods; occurrence.
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Sec. 2606. (1) Acceptance of goods occurs when the buyer (a) after a reasonable opportunity to inspect the goods signifies to the seller that the goods are conforming or that he will take or retain them in spite of their nonconformity; or (b) fails to make an effective rejection …
Mich. Comp. Laws § 440.2607 Acceptance of goods; effect; notice of breach; burden of establishing breach; notice of claim or litigation to person answerable.
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Sec. 2607. (1) The buyer must pay at the contract rate for any goods accepted. (2) Acceptance of goods by the buyer precludes rejection of the goods accepted and if made with knowledge of a nonconformity cannot be revoked because of it unless the acceptance was on the reasonable …
Mich. Comp. Laws § 440.2608 Acceptance of goods; revocation, time, notice, effect.
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Sec. 2608. (1) The buyer may revoke his acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to him if he has accepted it (a) on the reasonable assumption that its nonconformity would be cured and it has not been seasonably cured; or (b) with…
Mich. Comp. Laws § 440.2609 Contract for sale; performance; insecurity, demand, assurance of due performance.
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Sec. 2609. (1) A contract for sale imposes an obligation on each party that the other's expectation of receiving due performance will not be impaired. When reasonable grounds for insecurity arise with respect to the performance of either party the other may in writing demand adeq…
Mich. Comp. Laws § 440.2610 Anticipatory repudiation.
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Sec. 2610. When either party repudiates the contract with respect to a performance not yet due the loss of which will substantially impair the value of the contract to the other, the aggrieved party may (a) for a commercially reasonable time await performance by the repudiating p…
Mich. Comp. Laws § 440.2611 Anticipatory repudiation; retraction.
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Sec. 2611. (1) Until the repudiating party's next performance is due he can retract his repudiation unless the aggrieved party has since the repudiation cancelled or materially changed his position or otherwise indicated that he considers the repudiation final. (2) Retraction may…
Mich. Comp. Laws § 440.2612 Installment contract; breach.
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Sec. 2612. (1) An "installment contract" is one which requires or authorizes the delivery of goods in separate lots to be separately accepted, even though the contract contains a clause "each delivery is a separate contract" or its equivalent. (2) The buyer may reject any install…
Mich. Comp. Laws § 440.2613 Casualty to identified goods; total loss; partial loss, option of buyer.
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Sec. 2613. Where the contract requires for its performance goods identified when the contract is made, and the goods suffer casualty without fault of either party before the risk of loss passes to the buyer, or in a proper case under a "no arrival, no sale" term (section 2324) th…
Mich. Comp. Laws § 440.2614 Substituted performance; acceptance, payment.
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Sec. 2614. (1) Where without fault of either party the agreed berthing, loading, or unloading facilities fail or an agreed type of carrier becomes unavailable or the agreed manner of delivery otherwise becomes commercially impracticable but a commercially reasonable substitute is…
Mich. Comp. Laws § 440.2615 Failure of presupposed conditions; nondelivery, partial delivery, excuse.
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Sec. 2615. Except so far as a seller may have assumed a greater obligation and subject to the preceding section on substituted performance: (a) Delay in delivery or nondelivery in whole or in part by a seller who complies with paragraphs (b) and (c) is not a breach of his duty un…