UNIFORM COMMERCIAL CODE
Copyright 1978,1987,1988,1990,1991, 1992,1994,1995,1998,2001 by the American Law Institute and the National Conference of Commissioners on Uniform State Laws.
§ 2-310. Open Time for Payment or Running of Credit; Authority to Ship Under Reservation.
Unless otherwise agreed
(a) payment is due at the time and place at which the buyer is to receive the goods even though the place of shipment is the place of delivery;
(b) if the seller is required or authorized to send the goods, the seller may ship them under reservation, and may tender the documents of title, but the buyer may inspect the goods after their arrival before payment is due unless the inspection is inconsistent with the terms of the contract (Section 2-513);
(c) if tender of delivery is agreed to be made by way of documents of title otherwise than by paragraph (b), then payment is due regardless of where the goods are to be received (i) at the time and place at which the buyer is to receive delivery of the tangible documents, or (ii) at the time the buyer is to receive delivery of the electronic documents and at the seller's place of business or if none, the seller's residence; and
(d) if the seller is required or authorized to ship the goods on credit the credit period runs from the time of shipment but postdating the invoice or delaying its dispatch will correspondingly delay the starting of the credit period.
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2-325. "Letter of Credit" Term; "Confirmed Credit".
If the parties agree that the primary method of payment will be by letter of credit, the following rules apply:
(a) The buyer's obligation to pay is suspended by seasonable delivery to the seller of a letter of credit issued or confirmed by a financing agency of good repute in which the issuer and any confirmer undertake to pay against presentation of documents that evidence delivery of the goods.
(b) Failure of a party seasonably to furnish a letter of credit as agreed is a breach of the contract for sale.
(c) If the letter of credit is dishonored or repudiated, the seller, on seasonable notification, may require payment directly from the buyer.
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