California · Commercial Code
COM §2722: Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract (a) A right of action against the third party is in
What this law says, in plain English
A party to a sales contract may sue a third party who damages identified goods under that contract.
Read the full statutory text
Where a third party so deals with goods which have been identified to a contract for sale as to cause actionable injury to a party to that contract (a) A right of action against the third party is in either party to the contract for sale who has title to or a security interest or a special property or an insurable interest in the goods; and if the goods have been destroyed or converted a right of action is also in the party who either bore the risk of loss under the contract for sale or has since the injury assumed that risk as against the o ther; (b) If at the time of the injury the party plaintiff did not bear the risk of loss as against the other party to the contract for sale and there is no arrangement between them for disposition of the recovery, his suit or settlement is, subject to his own interest, as a fiduciary for the other party to the contract; (c) Either party may with the consent of the other sue for the benefit of whom it may concern.
Verify at the official source: California legislative text
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This page is legal information, not legal advice. Code text is sourced from official publications and may lag amendments — always confirm at the official source linked above. Plain-English summaries and relationship data are AI-derived and reviewed on an ongoing basis; verify with a licensed attorney before acting.