(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 South Dakota Codified Laws 57A-2-512

  • Buyer: means a person who buys or contracts to buy goods. See South Dakota Codified Laws 57A-2-103
  • 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 this title (§ 57A-5-109(b)).

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

Source: SL 1966, ch 150, § 2-512; SDCL, §§ 57-6-31, 57-6-32; SL 1998, ch 283, § 7.