Sec. 512. (1) Where the contract requires payment before inspection, nonconformity of the goods does not excuse the buyer from so making payment unless:

(a) the nonconformity appears without inspection; or

Terms Used In Indiana Code 26-1-2-512

  • Contract: A legal written agreement that becomes binding when signed.
  • Injunction: An order of the court prohibiting (or compelling) the performance of a specific act to prevent irreparable damage or injury.
(b) despite tender of the required documents the circumstances would justify injunction against honor under IC 26-1-5.1-109(b).

     (2) Payment pursuant to subsection (1) does not constitute an acceptance of the goods or impair the buyer’s right to inspect or any of his remedies.

Formerly: Acts 1963, c.317, s.2-512. As amended by P.L.152-1986, SEC.149; P.L.183-1996, SEC.2.