North Dakota Code 41-02-81 – (2-702) Seller’s remedies on discovery of buyer’s insolvency
1. When the seller discovers the buyer to be insolvent, the seller may refuse delivery except for cash including payment for all goods theretofore delivered under the contract, and stop delivery under this chapter (section 41-02-84).
Terms Used In North Dakota Code 41-02-81
- Contract: A legal written agreement that becomes binding when signed.
- Discovery: Lawyers' examination, before trial, of facts and documents in possession of the opponents to help the lawyers prepare for trial.
2. If the seller discovers that the buyer has received goods on credit while insolvent the seller 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 under this chapter (section 41-02-48).
Successful reclamation of goods excludes all other remedies with respect to them.
4. Notwithstanding any other provision of this section, a producer of agricultural products, upon discovery of the buyer’s insolvency, may reclaim the products within ten days after the receipt, but if misrepresentation of solvency has been made to the producer in writing within three months before delivery, the ten-day limitation does not apply. The producer’s right to reclaim is not subject to the rights of a buyer in the ordinary course of business or other good-faith purchaser.