Commercial Code section 2502

(1)

Subject to subdivisions (2) and (3), 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 the immediately preceding section may on making and keeping good a tender of any unpaid portion of their price recover them from the seller if either:

(a)

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

(b)

In all cases, the seller becomes insolvent within 10 days after receipt of the first installment on their price.

(2)

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

(3)

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: Section 2502, https://leginfo.­legislature.­ca.­gov/faces/codes_displaySection.­xhtml?lawCode=COM§ionNum=2502.­ (accessed Apr. 24, 2025).

Last Updated

Apr. 24, 2025

§ 2502’s source at ca​.gov