Title 8

NRS 104.2316 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 o…

NRS 104.2317 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…

NRS 104.2318 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 seller’s buyer or who is a guest in his or her home if it is reasonable to expect that su…

NRS 104.2319 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 selle…

NRS 104.2320 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 so includes cost and freight to the named destination.…

NRS 104.2321 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 tur…

NRS 104.2322 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…

NRS 104.2323 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 …

NRS 104.2324 “No arrival, no sale” term. Under a term “no arrival, no sale” or terms of like meaning, unless otherwise agreed: 1. 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 obliga…

NRS 104.2325 “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 seller of a proper letter of credit suspends the buyer’s obligation to pay. If the letter of…

NRS 104.2326 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; …

NRS 104.2327 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 con…

NRS 104.2328 Sale by auction. 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 ha…

NRS 104.2401 Passing of title; reservation for security; limited application of this section. 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 …

NRS 104.2402 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 u…

NRS 104.2403 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 pu…

NRS 104.2501 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 …

NRS 104.2502 Buyer’s right to goods on seller’s repudiation, failure to deliver or 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 un…

NRS 104.2503 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 fo…

NRS 104.2504 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…

NRS 104.2505 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 his or her own order or otherwise reserves in him or her a security interest in the goo…

NRS 104.2506 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 …

NRS 104.2507 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 acco…

NRS 104.2508 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 his or her intention to cure an…

NRS 104.2509 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 dul…

NRS 104.2510 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 bu…

NRS 104.2511 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 cour…

NRS 104.2512 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 do…

NRS 104.2513 Buyer’s right to inspection of goods. 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 …

NRS 104.2514 When documents deliverable on acceptance; when on payment. 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. (…

NRS 104.2515 Preserving evidence of goods in dispute. In furtherance of the adjustment of any claim or dispute: 1. 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 …

NRS 104.2601 Buyer’s rights on improper delivery. Subject to the provisions of this article on breach in installment contracts (NRS 104.2612) and unless otherwise agreed under the sections on contractual limitations of remedy (NRS 104.2718 and 104.2719), if the goods or the tende…

NRS 104.2602 Manner and effect of rightful rejection. 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 two following sections on rejected g…

NRS 104.2603 Merchant buyer’s duties as to rightfully rejected goods. 1. Subject to any security interest in the buyer (subsection 3 of NRS 104.2711), 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 …

NRS 104.2604 Buyer’s options as to salvage of rightfully rejected goods. 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 goo…

NRS 104.2605 Waiver of buyer’s objections by failure to particularize. 1. The buyer’s failure to state in connection with rejection a particular defect which is ascertainable by reasonable inspection precludes the buyer from relying on the unstated defect to justify rejection or …

NRS 104.2606 What constitutes acceptance of goods. 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 the buyer will take or retain them in spite of their nonconformit…

NRS 104.2607 Effect of acceptance; notice of breach; burden of establishing breach after acceptance; notice of claim or litigation to person answerable over. 1. The buyer must pay at the contract rate for any goods accepted. 2. Acceptance of goods by the buyer precludes rejection…

NRS 104.2608 Revocation of acceptance in whole or in part. 1. The buyer may revoke his or her acceptance of a lot or commercial unit whose nonconformity substantially impairs its value to the buyer if the buyer has accepted it: (a) On the reasonable assumption that its nonconform…

NRS 104.2609 Right to adequate assurance of performance. 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 eith…

NRS 104.2610 Anticipatory repudiation. 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: 1. For a commercially reasonable time await perf…

NRS 104.2611 Retraction of anticipatory repudiation. 1. Until the repudiating party’s next performance is due the repudiating party can retract his or her repudiation unless the aggrieved party has since the repudiation cancelled or materially changed his or her position or other…

NRS 104.2612 “Installment contract”; breach. 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. …

NRS 104.2613 Casualty to identified goods. 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,…

NRS 104.2614 Substituted performance. 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…

NRS 104.2615 Excuse by failure of presupposed conditions. Except so far as a seller may have assumed a greater obligation and subject to the preceding section on substituted performance: 1. Delay in delivery or nondelivery in whole or in part by a seller who complies with subsect…