§ 4-2-705 — Seller's stoppage of delivery in transit or otherwise

Colorado § 4-2-705

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Sales

Text

(1) 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 4-2-702), 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.

(2) As against such buyer, the seller may stop delivery until:

(a) Receipt of the goods by the buyer; or

(b) Acknowledgment to the buyer by any bailee of the goods except a carrier
that the bailee holds the goods for the buyer; or

(c) Such acknowledgment to the buyer by a carrier by reshipment or as a
warehouse; or

(d) Negotiation to the buyer of any negotiable document of title covering the
goods.

(3) (a) To stop delivery, the seller must so notify as to enable the bailee by
reasonable diligence to prevent delivery of the goods.

(b) 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.

(c) 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.

(d) A carrier who has issued a nonnegotiable bill of lading is not obliged to
obey a notification to stop received from a person other than the consignor.

Legislative History

Source: L. 65: p. 1336, � 1. C.R.S. 1963: � 155-2-705. L. 2006: (2)(c) and (3)(c) amended, p. 493, � 15, effective September 1.