Article 2 — Sales · Section 2-501
UCC § 2-501 addresses the requirements for a buyer to become obligated to pay for goods delivered to them.
Source: U.C.C. § 2-501
If the time of payment is not clearly stated in the contract or if it is not provided for in the agreement, the buyer is required to pay for the goods at the time and place of delivery.
UCC § 2-501 establishes that if a sales contract does not specify when payment is due, the buyer must pay for the goods at the time and place they are delivered. This section clarifies when the buyer's obligation to pay occurs in a sales transaction.
A person or entity that obtains goods through a sales transaction.
The act of transferring possession of goods from a seller to a buyer.
Example 1
A buyer orders furniture but the contract does not specify when payment should be made. Upon delivery of the furniture, the buyer must pay immediately, as per UCC § 2-501.
Example 2
A delivery truck arrives with a shipment of electronics. The sales agreement lacks terms regarding payment timing; therefore, the buyer is obligated to pay upon receipt of the electronics.