46-1-209 - Satisfaction of contract Cancellation of contract Substitution of merchandise or services.
46-1-209. Satisfaction of contract Cancellation of contract Substitution of merchandise or services.
(a) If for any reason a cemetery company that has entered into a contract for the sale of merchandise or services and has made the deposit into the trust funds as required in this part, cannot or does not provide the merchandise or perform the services called for by the contract within a reasonable time upon request, the purchaser, or the purchaser's heirs or assigns, or duly authorized representatives, shall have the right to provide the merchandise or services; and, having done so, shall be entitled to receive the deposit to the credit of that particular contract. Written instructions to the trustee by the cemetery company directing the trustee to refund the amount of money on deposit, or an affidavit by either the purchaser, or one (1) of the purchaser's heirs or assigns, or duly authorized representative, stating that the merchandise or services were not provided, shall be sufficient authority for the trustee to make refund of the funds on deposit to the person submitting the affidavit. However, nothing in this subsection (a) shall relieve the cemetery company from any liability for nonperformance of the contract.
(b) If the purchaser is in default on making payments under the sales contract for a period of twelve (12) consecutive months, the cemetery company shall have the right to cancel the contract and to withdraw from the trust fund the entire balance to the credit of the defaulting purchaser's account as liquidated damages. In that event, the trustee shall deliver the balance to the cemetery company upon its certification of the default by the purchaser; and upon receiving the certification, the trustee may rely on the certification and shall not be liable to anyone for such reliance.
(c) In the event the purchaser, or the purchaser's heirs or assigns, or authorized representatives, desire to substitute merchandise or services different from that which is specified in the sales contract because of changed conditions or practices in burial customs, the cemetery company shall give credit to the extent of all moneys already paid toward the payment of the substituted merchandise or services; provided, that the original sales contract has not been completed.
[Acts 1979, ch. 307, § 4(E); T.C.A., § 46-2-206; T.C.A., § 46-2-406; Acts 2006, ch. 1012, § 3.]