Buyer's right to goods on seller's insolvency - repudiation - failure to deliver.

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(1) Subject to subsections (2) and (3) of this section and even though the goods have not been shipped, a buyer who has paid a part or all of the price of goods in which he or she has a special property under the provisions of section 4-2-501 may on making and keeping good a tender of any unpaid portion of their price recover them from the seller if:

  1. In the case of goods bought for personal, family, or household purposes, the sellerrepudiates or fails to deliver as required by the contract; or

  2. In all cases, the seller becomes insolvent within ten days after receipt of the firstinstallment on their price.

  1. The buyer's right to recover the goods under paragraph (a) of subsection (1) of thissection vests upon acquisition of a special property, even if the seller had not then repudiated or failed to deliver.

  2. If the identification creating his or her special property has been made by the buyer,he or she acquires the right to recover the goods only if they conform to the contract for sale.

Source: L. 65: p. 1322, § 1. C.R.S. 1963: § 155-2-502. L. 2001: Entire section amended, p. 1437, § 21, effective July 1.

Cross references: For insurable interest in goods, see § 4-2-501; for secured transactions, see article 9 of this title.


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