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HomeCommercial CodeDiv. 2Ch. 6§ 2616 Buyer Rights After Delay

§ 2616 Buyer Rights After Delay

Commercial Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 2616 Buyer Rights After Delay

If a buyer is told there will be a big delay or only part of the order can be delivered, the buyer can either cancel the rest of the order or agree to take the smaller amount that’s available.

Key Takeaways

  • •Buyer gets a written notice of a big delay or limited supply.
  • •Buyer can cancel the unfinished part of the deal or accept the smaller amount that’s available.
  • •If the buyer doesn’t respond within 30 days, the deal for the missing items ends automatically.
  • •The rule can’t be waived unless the seller promises to do more than originally required.

Example

A store orders 200 toys, but the supplier tells them only 120 can be shipped now and the rest will be delayed a long time.

The store can write to the supplier and either cancel the remaining 80 toys or say they’ll just take the 120 toys that are ready. If the supplier doesn’t respond within 30 days, the order for the missing toys is automatically cancelled.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 2616 Buyer Rights After Delay

(1) Where the buyer receives notification of a material or indefinite delay or an allocation justified under the preceding section he may by written notification to the seller as to any delivery concerned, and where the prospective deficiency substantially impairs the value of the whole contract under the provisions of this division relating to breach of installment contracts (Section 2612), 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 30 days the contract lapses with respect to any deliveries affected. (3) The provisions of this section may not be negated by agreement except insofar as the seller has assumed a greater obligation under the preceding section. (Enacted by Stats. 1963, Ch. 819.)

Last verified: January 10, 2026

Key Terms

material or indefinite delayallocationterminatemodifyavailable quota30 daysgreater obligation

Related Statutes

  • § 2615 Seller Performance Excuse Conditions
  • § 10406 Lessee Rights After Delay
  • § 10600 Lease Contract Effective Dates
  • § 2601 Buyer Remedies For Nonconforming Goods
  • § 2602 Buyer Rejection Of Goods

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Commercial Code. Section 2616.
View Official Source