400.2-705. Seller's stoppage of delivery in transit or otherwise. - Missouri Statutes

Seller's stoppage of delivery in transit or otherwise.

400.2-705. (1) The seller may stop delivery of goods in thepossession of a carrier or other bailee when he discovers thebuyer to be insolvent (section 400.2-702) and may stop deliveryof carload, truckload, planeload or larger shipments of expressor freight when the buyer repudiates or fails to make a paymentdue before delivery or if for any other reason the seller has aright 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 goodsexcept a carrier that the bailee holds the goods for the buyer;or

(c) such acknowledgment to the buyer by a carrier byreshipment or as warehouseman; or

(d) negotiation to the buyer of any negotiable document oftitle covering the goods.

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

(b) After such notification the bailee must hold and deliverthe goods according to the directions of the seller but theseller is liable to the bailee for any ensuing charges ordamages.

(c) If a negotiable document of title has been issued forgoods the bailee is not obliged to obey a notification to stopuntil surrender of the document.

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

(L. 1963 p. 503 § 2-705)