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Contracts • Remedies for Unexcused Non-Performance
K#154
Legal Definition
Where a buyer has made at least part payment of identified goods and the seller has not delivered them, the buyer may replevy the goods where: (1) the seller becomes insolvent within 10 days after receiving the buyer's first payment; or (2) the goods were purchased for personal, family or household purposes.
Plain English Explanation
In a perfect world, immediately after a buyer pays for goods, they would magically appear in their possession. However, in the real world, it is not uncommon for a seller to accept an order right before going broke. In a situation where a buyer has paid at least partially for specific goods, the buyer has a right to replevy them (i.e., take them) from the seller in two situations:
Either (a) when the seller went broke within 10 days after being paid by the buyer for the goods, or (b) if the goods were purchased for personal, family, or household purposes.
Either (a) when the seller went broke within 10 days after being paid by the buyer for the goods, or (b) if the goods were purchased for personal, family, or household purposes.
Hypothetical
Hypo 1: In 2020, COVID-19 created a global pandemic where people were advised not to leave their house. Thus, delivery companies become more common for everyday items. Sam ordered 1 box of steaks to feed his family from Bob's butcher store to be delivered within a week. Bob's butcher store ends up going bankrupt due to the pandemic, however, Bob has already taken Sam's money and the box of steaks is sitting in a back room of Bob's butcher shop. Result: Sam has a right to recover the goods he purchased because Bob went insolvent within 10 days of being paid. Even if he hadn't, though, Sam would still have a right because the goods are purchased for personal, family or household purposes.
Visual Aids
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