Buyer's Right to Goods on Seller's Insolvency

  1. Law
  2. Georgia Code
  3. Commercial Code
  4. Sales
  5. Performance
  6. Buyer's Right to Goods on Seller's Insolvency

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  1. Subject to subsections (2) and (3) of this Code 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 the buyer has a special property under the provisions of Code Section 11-2-501 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 seller repudiates 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 first installment on their price.

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

If the identification creating the buyer's 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.

(Code 1933, § 109A-2 - 502, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 2001, p. 362, § 7.)

The 2001 amendment, effective July 1, 2001, in the introductory language of subsection (1), substituted "subsections (2) and (3)" for "subsection (2)" near the beginning, substituted "the buyer" for "he" in the middle, and substituted "if:" for "if the seller becomes insolvent within ten days after receipt of the first installment on their price." at the end, and added paragraphs (1)(a) and (1)(b); added subsection (2); redesignated former subsection (2) as present subsection (3), and, in subsection (3), substituted "the buyer's" for "his" and substituted "or she" for "he".

Code Commission notes.

- Pursuant to Code Section 28-9-5, in 2001, "buyer he or she" was substituted for "buyer or she" in subsection (3).

RESEARCH REFERENCES

6 Am. Jur. Pleading and Practice Forms, Commercial Code, § 2:392.

U.L.A.

- Uniform Commercial Code (U.L.A.) § 2-502.


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