Page:United States Statutes at Large Volume 77.djvu/696

 664

PUBLIC LAW 88-243-DEC. 30, 1963

[77 STAT.

breacli of installment contracts (section 28:2—012), then also as to the whole, (a) terminate and thereby discharge any unexecuted portion of the contract; or (b) modify the contract by agreeing to take his available quota in substitution. (2) If after receipt of such notification from the seller the buyer fails so to modify the contract within a reasonable time not exceeding thirty days the contract lapses with respect to any deliveries affectet^L (3) The provisions of this section may not be negated by agreement except in so far as the seller has assumed a greater obligation under the preceding section. PART 7—REMEDIES §28:2—701. Remedies for breach of collateral contracts not impaired Remedies for breach of any obligation or promise collateral or ancillary to a contract for sale are not impaired by the provisions of this article. § 28:2—702. Seller's remedies on discovery of buyer's insolvency (1) Where the seller discovers the buyer to be insolvent he may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under this article (section 28:2—705). (2) Where the seller discovers that the buyer has received goods on credit while insolvent he may reclaim the goods upon demand made within ten days after the receipt, but if misrepresentation of solvency has been made to the particular seller in writing within three months before delivery the ten day limitation does not apply. Except as provided in this subsection the seller may not base a right to reclaim goods on the buyer's fraudulent or innocent misrepresentation of solvency or of intent to pay. (3) The seller's right to reclaim under subsection (2) is subject to the rights of a buyer in ordinary course or other good faith purchaser or lien creditor under this article (section 28:2—403). Successful reclamation of goods excludes all other remedies with respect to them. § 28:2—703. Seller's remedies in general Where the buyer wrongfully rejects or revokes acceptance of goods or fails to make a payment due on or before delivery or repudiates with respect to a part or the whole, then with respect to any goods directly affected and, if the breach is of the whole contract (section 28:2—612), then also with respect to the whole undelivered balance, the aggrieved seller may (a) withhold delivery of such goods; (b) stop delivery by any bailee as hereafter provided (section 28:2—705); (c) proceed under the next section respecting goods still unidentified to the contract; (d) resell and recover danuiges as hereafter provided (section 28:2—706); (e) recover damages for non-acceptance (section 28:2—708) or in a proper case the price (section 28:2—709); (f) cancel.

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