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Tex. Bus. & Com. Code § 2.702

SELLER'S REMEDIES ON DISCOVERY OF BUYER'S INSOLVENCY

Known as the Uniform Commercial Code

The act spans §§ 1–12 (616 sections).

Applied in 5 court decisions — leading case United States v. Westside Bank (1984)

Most recently applied in Zeta Consumer Products Corp. v. Equistar Chemical, LP (In Re Zeta Consumer Products Corp.) (April 2003)

Acts 1967, 60th Leg., p. 2343, ch. 785, Sec. 1, eff

How often courts cite this section

1975198019902000200310
citing decisions per year

Court decisions citing this, by year. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.

(a) Where the seller discovers the buyer to be insolvent he may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under this chapter (Section 2.705).

(b) Where the seller discovers that the buyer has received goods on credit while insolvent he may reclaim the goods upon demand made within ten days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three months before delivery the ten day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the buyer's fraudulent or innocent misrepresentation of solvency or of intent to pay.

(c) The seller's right to reclaim under Subsection (b) is subject to the rights of a buyer in ordinary course or other good faith purchaser or lien creditor under this chapter (Section 2.403). Successful reclamation of goods excludes all other remedies with respect to them.

Official source: Texas Constitution and Statutes. Reproduced from public-domain Texas statutes; confirm against the official source for the current text. Not legal advice.