(1) A lessor may stop delivery of goods in the possession of a carrier or other bailee if the lessor discovers the lessee to be insolvent and may stop delivery of carload, truckload, planeload, or larger shipments of express or freight if the lessee repudiates or fails to make a payment due before delivery, whether for rent, security, or otherwise under the lease contract, or for any other reason the lessor has a right to withhold or take possession of the goods.
(2) In pursuing its remedies under subsection (1), the lessor may stop delivery until:
(a) Receipt of the goods by the lessee;
(b) Acknowledgment to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
(c) Such an acknowledgment to the lessee by a carrier via reshipment or as a warehouse.
(3) (a) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(b) After notification, the bailee shall hold and deliver the goods according to the directions of the lessor, but the lessor is liable to the bailee for any ensuring charges or damages.
(c) 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.
Structure Delaware Code
§ 2A-502. Notice after default.
§ 2A-503. Modification or impairment of rights and remedies.
§ 2A-504. Liquidation of damages.
§ 2A-506. Statute of limitations.
§ 2A-507. Proof of market rent: Time and place.
§ 2A-509. Lessee's rights on improper delivery; rightful rejection.
§ 2A-510. Installment lease contracts: Rejection and default.
§ 2A-511. Merchant lessee's duties as to rightfully rejected goods.
§ 2A-512. Lessee's duties as to rightfully rejected goods.
§ 2A-513. Cure by lessor of improper tender or delivery; replacement.
§ 2A-514. Waiver of lessee's objections.
§ 2A-515. Acceptance of goods.
§ 2A-517. Revocation of acceptance of goods.
§ 2A-518. Cover, substitute goods.
§ 2A-520. Lessee's incidental and consequential damages.
§ 2A-521. Lessee's right to specific performance or replevin.
§ 2A-522. Lessee's right to goods on lessor's insolvency.
§ 2A-524. Lessor's right to identify goods to lease contract.
§ 2A-525. Lessor's right to possession of goods.
§ 2A-526. Lessor's stoppage of delivery in transit or otherwise.
§ 2A-527. Lessor's rights to dispose of goods.
§ 2A-528. Lessor's damages for non-acceptance, failure to pay, repudiation, or other default.
§ 2A-529. Lessor's action for the rent.
§ 2A-530. Lessor's incidental damages.
§ 2A-531. Standing to sue third parties for injury to goods.