Scribd Logo
Upload

Welcome to Scribd!

  • 79 views

    Rights of Unpaid Seller

    Uploaded by

    Divya Tammineedi
    An unpaid seller is a person who has sold goods but has not been paid in full for them. An unpaid seller has rights against the goods, including lien, stoppage in transit, and re-sale, as well as rights against the buyer personally such as suits for the price, damages, or interest. The rights of an unpaid seller include retaining possession of goods until payment (lien), stopping goods in transit after insolvency of the buyer, and re-selling goods after notice to recover the price.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    Rights of Unpaid Seller

    Uploaded by

    Divya Tammineedi
    79 views19 pages
    An unpaid seller is a person who has sold goods but has not been paid in full for them. An unpaid seller has rights against the goods, including lien, stoppage in transit, and re-sale, as well as rights against the buyer personally such as suits for the price, damages, or interest. The rights of an unpaid seller include retaining possession of goods until payment (lien), stopping goods in transit after insolvency of the buyer, and re-selling goods after notice to recover the price.

    Original Title

    19074 -Rights of Unpaid Seller

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    An unpaid seller is a person who has sold goods but has not been paid in full for them. An unpaid seller has rights against the goods, including lien, stoppage in transit, and re-sale, as well as rights against the buyer personally such as suits for the price, damages, or interest. The rights of an unpaid seller include retaining possession of goods until payment (lien), stopping goods in transit after insolvency of the buyer, and re-selling goods after notice to recover the price.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    79 views19 pages

    Rights of Unpaid Seller

    Uploaded by

    Divya Tammineedi
    An unpaid seller is a person who has sold goods but has not been paid in full for them. An unpaid seller has rights against the goods, including lien, stoppage in transit, and re-sale, as well as rights against the buyer personally such as suits for the price, damages, or interest. The rights of an unpaid seller include retaining possession of goods until payment (lien), stopping goods in transit after insolvency of the buyer, and re-selling goods after notice to recover the price.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 19

    RIGHTS OF UNPAID

    SELLER

    PRESENTED BY:
    T.DIVYA SREE
    19074
    TPS – B
    SSIM
    Who is an Unpaid Seller?

    A person who has sold goods to another person but has not
    been paid for the goods, or has been paid partially, is called
    an unpaid seller.
    According to Section 45 of the Sale Of Goods Act, an
    unpaid seller is one:
    – Who has not been paid the price of the goods he has
    supplied, or has been paid partially.
    – Who has been given a negotiable instrument like a bill of
    exchange that has been dishonored.
    It is immaterial whether the seller is directly involved in the
    transaction, or he is acting through his agent
    Rights of an Unpaid Seller

    • ‡Rights Against Goods


    • ‡Rights Against The Buyer Personally
    Rights Against Goods

    Where the property in the goods has passed


    [Sec 46(1)]
     ‡Right of Lien
     Right of stoppage the goods in transit.
     ‡Right of re-sale
    • Where the property in the goods has not passed
    [Sec 46 (2)]
     Withholding delivery
     Stoppage in transit
    Right of Lien

    • ‡The word lien means to retain possession of.


    • Under sec 47 an unpaid seller who is in possession of
    goods, but ownership has been transferred to the buyer,
    is entitled to retain them in his possession until payment
    or tender of the price, as in the following cases:-
    1. Where the goods have been sold without any
    stipulation as to credit.
    2. Where the goods have sold on credit, but the term of
    credit has expired.
    3. Where the buyer become insolvent.
    Rules Regarding Lien
    • The seller may exercise his right of lien not withstanding that he
    is in the possession of goods as agent or bailee for the buyer. If
    he loses the possession of the goods, he loses the lien also.
    • The lien depends upon the actual possession and not on title.
    • The possession of goods by the seller must not expressly
    exclude the right of lien.
    • The lien can be exercised by the seller only for the price and not
    for any other charges such as warehouse or dock charges.
    • Where an unpaid seller has made part delivery of the goods, he
    may exercise his right of lien on the remainder.
    Termination of Lien

    According to section 49, the lien of an unpaid seller terminates in


    following conditions:
    • ‡When seller delivers the goods to a carrier or other bailee for the
    purpose of transmission to the buyer, without reserving a right of
    disposal of the goods to himself.
    • ‡Where the buyer or his agent lawfully obtains possession of goods.
    EXAMPLE:
    P sells a lawn-mower to D and refuses to deliver it to D till he has
    been paid for. But he lends it to D in order that D may cut the grass.
    P does not lose his lien
    • ‡By waiving the rights of lien
    Rights of Stoppage-in-Transit

    • ‡Acc to sec 50 – the right of stoppage in transit is a


    right of stopping the goods in transit after the
    unpaid seller has parted with the possession of the
    goods.
    • He has the further right of resuming the possession
    of goods as long as they are in course of transit, and
    retaining possession until payment or tender of the
    price. It is available to the unpaid seller -
     when the buyer of goods becomes insolvent,
     when the goods are in transit
    Duration of Transit [sec 51]

    • According to Section 51,when the seller has


    delivered the goods to the carrier or bailee for
    transmission to the buyer, until the goods are
    received by the buyer or his agent is the
    duration of transit.
    • The carrier may hold goods –
    – As seller’s agent
    – As buyer’s agent
    – In an independent capacity
    When does transit end ?

    • ‡Once the goods reach the hands of the buyer,


    servant or agent.
    • ‡Also, if the buyer or agent obtains delivery of
    goods before they reach their destination.
    • ‡Holding the goods by the carrier or bailee on
    behalf of the buyer
    • ‡Rejection by the buyer
    • ‡Delivery to ship
    Comparison
    Right of lien Right of stoppage in transit
    • It can be exercised even when • The right arises when the
    the buyer is able to pay but buyer is insolvent.
    does not pay. • It can be executed when the
    • It can be exercised on goods goods are in the possession of
    which are in actual or the middlemen.
    constructive possession of the • The right of transit
    seller. commences when the goods
    • The right comes to an end have left the possession of the
    when the possession of the seller and continue until the
    goods is surrendered by the buyer or his agent has
    seller. acquired the possession.
    Contd..
    Right of lien Right of stoppage in transit
    • The right of lien is to retain • the right of stoppage in
    the possession. transit is to regain or resume
    possession.

    EXAMPLE:
    B sells and consigns certain goods to A. B being still
    unpaid, A becomes insolvent and while the goods are
    in transit, assigns the bill of lading for cash to C who
    knows that A is insolvent. The assignment not made in
    good faith. B may stop the goods in transit.
    Right of Re-Sale [sec 54]

    • ‡The unpaid seller, who has retained possession


    of the goods in exercise of his right of lien or who
    has resumed possession from the carrier upon
    insolvency of the buyer, can re-sale the goods:
     If the goods are of perishable nature, without any
    notice to the buyer.
     In the other cases after notice to buyer calling upon
    him to pay or tender the price within reasonable time,
    and upon failure of the buyer to do so.
    Right against the buyer personally
    [sec 55 to 61]

    • ‡Suit for the price [sec 55]


     Where the property has passed
     Where property has not passed
    • ‡Suit for damages for non- acceptance [sec
    56]
     Where the buyer wrongfully neglects or refuses to
    accept and pay for the goods, the seller may sue
    him for the non- acceptance.
    Contd..
    • ‡Repudiation of contract before due date
    [sec 60]
    Where the buyer repudiates the contract before the
    date of delivery, the seller may either –
     Treat the contract as subsisting and wait till the date of
    delivery
     He may treat the contract as rescinded and sue for
    damages for the breach. This rule is known as the “ rule
    for anticipatory breach of contract”.
    Contd..
    • ‡Suit for Interest [sec 61]
     Where there is a specific agreement between the seller
    and the buyer as to interest on the price of the goods
    from the date on which payment becomes due, the
    seller may recover interest from the buyer.
     If there is no specific agreement , the seller may
    charge interest on the price when it becomes due
    from such day as he may notify the buyer.
     In the absence of the contract the court may award
    interest to the seller in a suit by him.
    Remedies Of Breach Of Contract Of Sale

    • Seller’s Suits
     Suit for price (Sec 55)
     Suit for damage for non-acceptance of the goods
    (Sec 56)
     Suit for damages for repudiation of contract by the
    buyer before due date (Sec 60)
     Suit for interest [Sec 61(2)(a)]
    Contd..
    • Buyer’s suits
     Suit for damages for non-delivery of the goods
    (Sec 57)
     Suit for specific performance (Sec 58)
     Suit for breach of warranty (Sec 59)
     Suit for damage for repudiation of contract by the
    seller before due date (Sec 60)
     Suit for interest [Sec 61(1)(b)]

    You might also like