If parties to the sale of goods under Article 2 fail to state when title passes, then it is presumed to pass when the goods are manufactured and ready for shipment.

Question

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If the parties to the sale of goods under Article 2 fail to state when title passes, then the Uniform Commercial Code (UCC) provides default rules for determining when title passes. According to UCC Section 2-401, title passes to the buyer at the time and place of delivery, unless otherwise agreed by the parties. Therefore, if the parties did not specify otherwise, title would pass at the time and place of delivery, not when the goods are manufactured and ready for shipment.

If Parties to the Sale of Goods Under Article 2