Delaware Code Title 6 Sec. 2-505 – Seller’s shipment under reservation
(1) Where the seller has identified goods to the contract by or before shipment:
(a) his or her 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 goods. His or her 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 non-negotiable bill of lading to himself or herself or his or her nominee reserves possession of the goods as security but except in a case of conditional delivery (subsection (2) of § 2-507) a non-negotiable bill of lading naming the buyer as consignee reserves no security interest even though the seller retains possession or control of the bill of lading.
Terms Used In Delaware Code Title 6 Sec. 2-505
- Buyer: means a person who buys or contracts to buy goods. See Delaware Code Title 6 Sec. 2-103
- Contract: A legal written agreement that becomes binding when signed.
- Contract for sale: includes both a present sale of goods and a contract to sell goods at a future time. See Delaware Code Title 6 Sec. 2-106
- Document: means :
- Person: means a natural person, partnership (whether general or limited), limited liability company, trust (including a common law trust, business trust, statutory trust, voting trust or any other form of trust), estate, association (including any group, organization, co-tenancy, plan, board, council or committee), corporation, government (including a country, state, county or any other governmental subdivision, agency or instrumentality), custodian, nominee or any other individual or entity (or series thereof) in its own or any representative capacity, in each case, whether domestic or foreign. See Delaware Code Title 6 Sec. 17-101
- Seller: means a person who sells or contracts to sell goods. See Delaware Code Title 6 Sec. 2-103
(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 power as a holder of a negotiable document.
5A Del. C. 1953, §§ ?2-505; 55 Del. Laws, c. 349; 70 Del. Laws, c. 186, § ?1; 74 Del. Laws, c. 332, § ?12;