State Codes and Statutes
Statutes > Virginia > Title-8-2 > Part-5 > 8-2-501§ 8.2-501. Insurable interest in goods; manner of identification of goods.
(1) The buyer obtains a special property and an insurable interest in goodsby identification of existing goods as goods to which the contract referseven though the goods so identified are nonconforming and he has an option toreturn or reject them. Such identification can be made at any time and in anymanner explicitly agreed to by the parties. In the absence of explicitagreement identification occurs
(a) when the contract is made if it is for the sale of goods already existingand identified;
(b) if the contract is for the sale of future goods other than thosedescribed in paragraph (c), when goods are shipped, marked or otherwisedesignated by the seller as goods to which the contract refers;
(c) when the crops are planted or otherwise become growing crops or the youngare conceived if the contract is for the sale of unborn young to be bornwithin twelve months after contracting or for the sale of crops to beharvested within twelve months or the next normal harvest season aftercontracting whichever is longer.
(2) The seller retains an insurable interest in goods so long as title to orany security interest in the goods remains in him and where theidentification is by the seller alone he may until default or insolvency ornotification to the buyer that the identification is final substitute othergoods for those identified.
(3) Nothing in this section impairs any insurable interest recognized underany other statute or rule of law.
(1964, c. 219.)
