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Texas Business & Commerce Code

§ 2.705 — SELLER'S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE

BC § 2.705Title 1. UNIFORM COMMERCIAL CODE · Ch. 2. SALES · Art. G. REMEDIES

Statute text

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(a)The seller may stop delivery of goods in the possession of a carrier or other bailee when he discovers the buyer to be insolvent (Section 2.702) and may stop delivery of carload, truckload, planeload or larger shipments of express or freight when the buyer repudiates or fails to make a payment due before delivery or if for any other reason the seller has a right to withhold or reclaim the goods.
(b)As against such buyer the seller may stop delivery until
(1)receipt of the goods by the buyer; or
(2)acknowledgment to the buyer by any bailee of the goods except a carrier that the bailee holds the goods for the buyer; or
(3)such acknowledgment to the buyer by a carrier by reshipment or as a warehouse; or
(4)negotiation to the buyer of any negotiable document of title covering the goods. (c)(1) To stop delivery the seller must so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.

Legislative history

Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 12, eff. September 1, 2005.

Source: Texas Business & Commerce Code § 2.705 from the Texas Constitution and Statutes (Texas Legislature) (public record). DecisionDepot is for informational use only and is not legal advice — verify against the official source before relying on this text.