Sec. 42a-2-705. Seller's stoppage of delivery in transit or otherwise. - Connecticut Statutes

      Sec. 42a-2-705. Seller's stoppage of delivery in transit or otherwise. (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 as provided in section 42a-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.

      (1959, P.A. 133, S. 2-705; P.A. 04-64, S. 54.)

      History: P.A. 04-64 amended Subsec. (2)(c) by replacing "warehouseman" with "a warehouse" and amended Subsec. (3)(c) by adding "possession or control of" to conform to revisions made to article 7 by the same act.

      Annotations to former statutes:

      1958 Rev., S. 42-59: Notice to carrier need not specify reason, since right exists only in case of consignee's insolvency. 104 C. 347. Course carrier should pursue if in doubt as to seller's right to stop. See note to Sec. 42a-2-703.

      1958 Rev., S. 42-62: Sale by buyer while goods are in transit does not defeat seller's right of stoppage in transitu unless a negotiable bill of lading was issued and has been negotiated for value or unless seller has consented to the subsale. 104 C. 484.

      Annotation to present section:

      Cited. 207 C. 599.