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
Section: 2.614 2.615 2.616 2.701 2.702 2.703 2.704 2.705 2.706 2.707 2.708 2.709 2.710 2.711 2.712
§ 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
(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
(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,
Last modified: August 11, 2007