Texas Statutes
Subchapter E. Default
Section 2A.526. Lessor's Stoppage of Delivery in Transit or Otherwise

Sec. 2A.526. LESSOR'S STOPPAGE OF DELIVERY IN TRANSIT OR OTHERWISE. (a) 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.
(b) In pursuing its remedies under Subsection (a), the lessor may stop delivery until:
(1) receipt of the goods by the lessee;
(2) acknowledgement to the lessee by any bailee of the goods, except a carrier, that the bailee holds the goods for the lessee; or
(3) such an acknowledgement to the lessee by a carrier via reshipment or as a warehouse.
(c)(1) To stop delivery, a lessor shall so notify as to enable the bailee by reasonable diligence to prevent delivery of the goods.
(2) 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 ensuing charges or damages.
(3) A carrier who has issued a nonnegotiable bill of lading is not obligated to obey a notification to stop received from a person other than the consignor.
Added by Acts 1993, 73rd Leg., ch. 570, Sec. 1, eff. Sept. 1, 1993.
Amended by:
Acts 2005, 79th Leg., Ch. 122 (S.B. 1593), Sec. 15, eff. September 1, 2005.

Structure Texas Statutes

Texas Statutes

Business and Commerce Code

Title 1 - Uniform Commercial Code

Chapter 2A - Leases

Subchapter E. Default

Section 2A.501. Default: Procedure

Section 2A.502. Notice After Default

Section 2A.503. Modification or Impairment of Rights and Remedies

Section 2A.504. Liquidation of Damages

Section 2A.505. Cancellation and Termination and Effect of Cancellation, Termination, Rescission, or Fraud on Rights and Remedies

Section 2A.506. Statute of Limitations

Section 2A.507. Proof of Market Rent

Section 2A.508. Lessee's Remedies

Section 2A.509. Lessee's Rights on Improper Delivery; Rightful Rejection

Section 2A.510. Installment Lease Contracts: Rejection and Default

Section 2A.511. Merchant Lessee's Duties as to Rightfully Rejected Goods

Section 2A.512. Lessee's Duties as to Rightfully Rejected Goods

Section 2A.513. Cure by Lessor of Improper Tender or Delivery; Replacement

Section 2A.514. Waiver of Lessee's Objections

Section 2A.515. Acceptance of Goods

Section 2A.516. Effect of Acceptance of Goods; Notice of Default; Burden of Establishing Default After Acceptance; Notice of Claim or Litigation to Person Answerable Over

Section 2A.517. Revocation of Acceptance of Goods

Section 2A.518. Cover; Substitute Goods

Section 2A.519. Lessee's Damages for Nondelivery, Repudiation, Default, and Breach of Warranty in Regard to Accepted Goods

Section 2A.520. Lessee's Incidental and Consequential Damages

Section 2A.521. Lessee's Right to Specific Performance, Replevin, and Other Remedies

Section 2A.522. Lessee's Right to Goods on Lessor's Insolvency

Section 2A.523. Lessor's Remedies

Section 2A.524. Lessor's Right to Identify Goods to Lease Contract

Section 2A.525. Lessor's Right to Possession of Goods

Section 2A.526. Lessor's Stoppage of Delivery in Transit or Otherwise

Section 2A.527. Lessor's Rights to Dispose of Goods

Section 2A.528. Lessor's Damages for Nonacceptance, Failure to Pay, Repudiation, or Other Default

Section 2A.529. Lessor's Action for the Rent

Section 2A.530. Lessor's Incidental Damages

Section 2A.531. Standing to Sue Third Parties for Injury to Goods

Section 2A.532. Lessor's Rights to Residual Interest