Tex. Bus. & Com. Code § 2.705 · Subchapter G. REMEDIES
SELLER'S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE.
Text — Current through the 89th 2nd Called Legislative Session, 2025
(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.
Notes and commentary — not statutory text
History
Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff. Sept. 1, 1967.
Amended by:
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 12, eff. September 1, 2005.
Source of truth
- Edition
- Current through the 89th 2nd Called Legislative Session, 2025
- Official file
- https://statutes.capitol.texas.gov/Docs/BC/htm/BC.2.htm
- Text hash
- sha256 857865fbd64c826c0e07c87b5b4d45d21d326006c200e84954ea507c30e1daec
- Composed by
- compose_tx.py 2026-10-05: the Legislative Council's chapter files read in document order; verify_tx.py's independent reading (lxml DOM walk) agrees character for character
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 5 provisions
Provisions in this library whose text cites Tex. Bus. & Com. Code § 2.705. Each shows the citation as that text prints it.
Business & Commerce Code
- Tex. Bus. & Com. Code § 2.702SELLER'S REMEDIES ON DISCOVERY OF BUYER'S INSOLVENCY.Printed as Section 2.705
- Tex. Bus. & Com. Code § 2.703SELLER'S REMEDIES IN GENERAL.Printed as Section 2.705
- Tex. Bus. & Com. Code § 2.707"PERSON IN THE POSITION OF A SELLER".Printed as Section 2.705
- Tex. Bus. & Com. Code § 7.403OBLIGATION OF WAREHOUSE OR CARRIER TO DELIVER; EXCUSE.Printed as Section 2.705
- Tex. Bus. & Com. Code § 7.504RIGHTS ACQUIRED IN ABSENCE OF DUE NEGOTIATION; EFFECT OF DIVERSION; STOPPAGE OF DELIVERY.Printed as Section 2.705
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.