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Texas Business & Commerce Code - Section 2.705. Seller's Stoppage Of Delivery In Transit Or Otherwise

Legal Research Home > Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 2.705. Seller's Stoppage Of Delivery In Transit Or Otherwise

§ 2.705. SELLER'S STOPPAGE OF DELIVERY IN TRANSIT OR 
OTHERWISE.  (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.
		(2)  After such notification the bailee must hold and 
deliver the goods according to the directions of the seller but the 
seller is liable to the bailee for any ensuing charges or damages.
		(3)  If a negotiable document of title has been issued 
for goods the bailee is not obliged to obey a notification to stop 
until surrender of possession or control of the document.
		(4)  A carrier who has issued a non-negotiable bill of 
lading is not obliged to obey a notification to stop received from a 
person other than the consignor.

Acts 1967, 60th Leg., p. 2343, ch. 785, § 1, eff. Sept. 1, 1967.  
Amended by Acts 2005, 79th Leg., ch. 122, § 12, eff. Sept. 1, 
2005.

Last modified: August 11, 2007